Harry here. Rideshare driving is one of the most flexible jobs in the world, and now even the pay is getting more flexible with the nationwide roll-out of Instant Pay. Today, senior RSG contributor Christian Perea updates us on what’s going on with Uber’s Instant Pay.
Uber Instant Pay is now available to all drivers on the Uber platform. In the past, it was a pilot program for select drivers and required the use of a GoBank checking account. But now the program has been expanded to everyone and also allows you to use your personal debit card.
If you’re not familiar with the program, Instant Pay allows drivers to cash out their earnings on demand (instead of having to wait for a week!). The program disburses funds to the driver upon the driver’s request, has no minimum cash-out amount, and costs just $0.50 for each disbursement when you withdraw to your personal debit card.
You can also request an Uber debit card that links to a business account setup through a partnership with GoBank. Disbursing to the GoBank card does not incur a fifty cent fee, however it involves all of the responsibility (and headache) that comes with having another checking account.
How Does Instant Pay Work?
Once you’ve earned money from driving (referrals don’t count unfortunately), you can request disbursement through the driver-partner portal or the driver app up to five times a day! So you could do it after a single $2.00 ride or after $200 in fares. If you cash it out to a personal debit card, its $0.50 each time (think Express Pay on Lyft). But if you cash out to an Uber GoBank debit card than you forego the $0.50 charge (you do need to find a fee-free GoBank ATM though).
If you do not ask for an Instant Pay disbursement, your fares and other money owed by Uber will be paid out via direct deposit to your personal checking account on file just like normal. So there is plenty of flexibility.
Instant Pay + Your Debit Card
I personally recommend using your own debit card to cash out instead of getting the Uber Debit Card because it is simple and will not result in a NEW bank account being opened on your behalf via Uber and GoBank. Most of the complaints we got from readers about the Pilot Instant Pay Program revolved around issues dealing with GoBank and Uber’s customer service.
Once you click on “Add Card” in the screenshot above, you will be directed to a second screen to add your card details. From there, you can access Uber Instant Pay from the Driver App or Driver Portal and select “transfer now” to transfer the funds that you have earned for the week.
For Full Walkthrough: See This Youtube Video.
Uber/GoBank: Payment Flexibility + A Business Checking Account
However, there is more than meets the eye to the entire Instant Pay program with Uber. The GoBank partnership for the debit card will create a business checking account for the driver and allow online banking for drivers who choose to disburse their payment through Instant Pay.
The Uber debit card will also come with the ability to disburse directly to the drivers account, a routing and account number, and all the extras that you would expect from a business checking account. The account and debit card are also 100% free as long as a driver initiates an “Instant Pay” once every six months. Otherwise, it costs $8.95/month.
Terms and Stuff: https://m.gobank.com/uber/noworries
This is actually a good service to many drivers who wish to keep their business expenses separate from their personal accounts, which make tracking and taxes more simple. It’s also a nice benefit for anyone who has thought about driving for Uber but doesn’t have a bank account. However, I would be wary of any extra terms and do my research on GoBank before choosing to open a business checking account with them. If you Google their name, they don’t have the best reviews and there are quite a few complaints about their customer service.
If you’re not an Uber driver yet, all you have to do is apply to drive with Uber and they’ll walk you through opening a GoBank account online for free. No initial deposit is required.
ATM withdrawals are free from any of GoBanks 40,000+ ATMs. Otherwise, there is a $2.50 fee to withdraw from an out of network ATM, plus whatever the ATM owner charges. I’d try to avoid out of network ATMs, since it will be at least $4-5+ every time you want to pull money out.
You can also choose to disburse funds from the GoBank account to your personal checking account via an ACH transfer, so there should be no worries about leaving money tied up in the account if you don’t wish to use it there.
Our Take At RSG
After Lyft launched Express Pay, there was a lot of demand from drivers on the Uber Platform to have a similar option or service. It is definitely a popular option with Lyft drivers, so it was only a matter of time before Uber released something similar.
The setup process to your debit card is just as simple as Lyft’s Express Pay. We recommend doing this instead of whatever Uber has going on with Green Dot/GoBank unless you need a new checking account.
If you choose to go with the GoBank/Uber debit card and checking account for Uber Instant Pay involves a few more steps, so it’s initially less convenient than Express Pay on Lyft. However, these could also be strengths, in that it offers an entire suite of banking services to drivers who may otherwise not have them.
It’s good to see TNCs competing with each other on new driver friendly features like this because they benefit drivers big time. Even though it may not always seem like it, competition is a good thing for drivers.
Don’t Want to Use Uber Instant Pay?
Update: DailyPay is no longer accepting payments for Uber drivers but you can still use them for other rideshare/delivery services as noted below.
DailyPay has been offering daily payments to Uber drivers for a while now, but the nice thing about DailyPay is they now integrate with several other gig economy apps. So if you work for Uber and other services like DoorDash, Postmates, Instacart or Fasten, you can still get a single combined payment at the end of the day.
As you know, we are big fans of driving for multiple services and diversifying your income, so this is a cool integration. If you’d like to sign up for DailyPay using our link, please click here.
ActiveHours is also another option for drivers that lets drivers choose their service fee! Check them out here if you only need the occasional cash out.
FAQs: Uber Instant Pay
How long before Uber Instant Pay is available in my market?
Uber Instant Pay is now available in every market. The program has been rolled out nationwide to all Uber drivers.
Are any drivers not eligible for Uber’s Instant Pay?
If you’re on an Xchange lease or similar program, you are not eligible for Uber’s Instant Pay but you can look to a third party service like DailyPay in order to get daily payments.
Are there any hidden fees, costs, etc.?
Using Uber Instant Pay with your personal debit card will incur a $0.50 transaction fee each time you cash out.
If you go with the GoBank option, there are no monthly account fees as long as you do at least one Instant Pay every six months. ATM withdrawals are also free if you use one of the ATMs in GoBank’s network.
How do I cash out with Instant Pay?
How long will it take for the money to show up?
What part of my earnings can I cash out?
How often can I cash out with Uber Instant Pay?
Drivers, what do you think about the nationwide rollout of Uber’s new Instant Pay Option? Does this sound like a feature you’d like to use?
Make Every Mile CountDid you know that every 1,000 business miles can generate $535 in tax deductions? Never miss another mile with the new QuickBooks Self-Employed automatic mileage tracker.
-Christian @ RSG
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