A major nuisance of most cabs is that try as you might, a driver will not take your credit card. The driver will take you a mile out of your way (and not charge you for the extra mile) just to bring you to an ATM and take your cash. Drivers always seem to size you up and reject you when you suggest such a thing as using a credit card. It seems like the drivers always have the ability to take your credit card but for one reason or another, their credit card processing equipment "just broke." Believe it or not, it is a loaded issue!
Reasons drivers will not take credit cards (that I have come up with):
1. Unable to determine if the credit card is good: If a driver accepts a bad credit card as a form of payment, they won't get paid for the trip. It is costly for fleets to install the equipment that automatically authorizes credit cards. Even if they install it, the driver may not get a good signal. It is a pain to call a dispatch operator to get an authorization number over the phone.
2. Drivers have a cash-only mentality: Often, the cab driver is a person who prefers cash in their hand. Perhaps it is because the do not trust banks, or credit cards, or they need the cash immediately. It is simply the culture.
3. Drivers have to pay credit card fees: Usually fleets charge drivers a flat rate or percentage of each credit card trip. It can be as high as 15% of the fare. Drivers don't want to pay their company or their bank if they don't have to.
4. It creates a record: Yes, an all cash business makes it easier for income to go unreported. Enough said.
Certainly, the drivers that survive in the business and the people on the business end want to enable customers to pay with credit cards. We want to please customers, create a record, and we know that cashless payment is the way of the future. Here is what we do to encourage that drivers take credit cards:
1. Reduce credit card fees: We need to cover our costs too, and we are willing to share that cost with drivers.
2. Improve and/or install credit card processing equipment: The equipment is costly (sometimes as high as $10,000 per cab), the radio frequencies are costly, the maintenance is costly, but slowly companies and regulators are understanding that credit card processing and its reliability is the way of the future. Often, it requires regulation standardizing credit card processing for the technology to be implemented.
3. Educate drivers through training: Training and education can show drivers that they will get more trips and higher tips if they take credit cards thereby decreasing idle time, dead-heading, and making up for any costs and fees.
4. Create incentives/discipline: Reward drivers that accept a lot of credit card trips, discipline those who do not
5. Communicate to customers/drivers: Something as simple as putting a "Credit Cards Accepted" sticker on a cab can go a long way. Also, marketing, websites, ads can communicate this message.
Here's an article that talks about how much NYC cabbies like their CC processing equipment: http://www.yellowcabnyc.com/nyc-taxi/yorks-cabbies-credit-cards
Some info about the implementation of CC equipment in NYC cabs: http://www.nyc.gov/html/tlc/html/passenger/taxicab_serv_enh.shtml
A couple companies that have some cool cab technology that enables CC authorizations:
Taxipass: http://www.taxipass.com/travelers.htm
Ridecharge: http://www.ridecharge.com/
Verifone: http://www.verifone.com/industry-solutions/taxi.aspx
DDS what we use: http://www.digital-dispatch.com/ (more on our technology in a future column...)
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