Some San Francisco taxi drivers prefer being paid in cash instead of accepting credit cards, which require drivers to pay a 5 percent surcharge on each transaction.
Taxi passengers in The City are complaining about being left out in the cold by drivers who won’t take credit cards, despite a city law mandating the acceptance of plastic.
Drivers have been up in arms about a new policy forcing them to pay 5 percent when they accept credit cards. To protest the policy, some tell passengers that they don’t accept credit cards, or that their card swiper is broken.
“About 40 percent of the time I take a taxi, drivers tell me that they don’t take cards,” said Nick Halsing, a city resident. “It’s the first thing I hear when I get in the car.”
Blake Manship said he frequently encounters the problem, which is particularly troublesome when he’s short on time and cash.
“I’ve had to swing by an ATM and take cash out to get a ride,” Manship said. “It was a huge pain, plus I got hit with a surcharge from my bank.”
As part of a 2010 city ordinance, accepting plastic is mandatory for all registered San Francisco cabdrivers, according to San Francisco Municipal Transportation Agency spokesman Paul Rose. If a card swipe is broken, drivers should have a backup processing method, Rose said.
He said the agency is aware that drivers refuse credit card payments. Any time passengers experience this situation, they should call 311 and report the taxi number, time and date, he said. Drivers who don’t take cards could be forced to go through re-training or face fines, Rose said.
Michael Patrick, a doorman at the Westin St. Francis in Union Square, said he often gets complaints about this from hotel guests.
“The drivers will go a few blocks and then say they don’t take cards,” Patrick said. “They make the passengers stop by the ATM if they don’t have cash.”
However, cabdrivers queuing recently in front of the St. Francis behaved otherwise. Over two days, nine different drivers polled by The SF Examiner said they took credit cards, despite gripes about the fee.
“I’d rather take the 5 percent hit than lose the fare,” said Mike Singha, a Town Taxi driver.
A Royal Taxi driver readily accepted a reporter’s credit card for an $8 ride.
Although few drivers admit to refusing credit cards, cabbies said they understand why it happens.
Earlier this year, the SFMTA approved a measure that let cab companies charge drivers a 5 percent card fee per fare. The move was designed to help out companies paying high monthly fees for credit card usage. Drivers, however, said the fee unfairly targets working-class individuals who already struggle to make a living in San Francisco.
“Drivers are not refusing credit cards,” said John Han, a taxi driver. “They’re refusing the unfair cost that comes with taking credit cards.”
While that stance may be appreciated among drivers, it doesn’t go over too well with passengers.
“I got kicked out a cab just the other day on Market Street because I didn’t have cash,” said Elizabeth Baksi. “That was not fun.”
Drivers have been up in arms about a new policy forcing them to pay 5 percent when they accept credit cards. To protest the policy, some tell passengers that they don’t accept credit cards, or that their card swiper is broken.
“About 40 percent of the time I take a taxi, drivers tell me that they don’t take cards,” said Nick Halsing, a city resident. “It’s the first thing I hear when I get in the car.”
Blake Manship said he frequently encounters the problem, which is particularly troublesome when he’s short on time and cash.
“I’ve had to swing by an ATM and take cash out to get a ride,” Manship said. “It was a huge pain, plus I got hit with a surcharge from my bank.”
As part of a 2010 city ordinance, accepting plastic is mandatory for all registered San Francisco cabdrivers, according to San Francisco Municipal Transportation Agency spokesman Paul Rose. If a card swipe is broken, drivers should have a backup processing method, Rose said.
He said the agency is aware that drivers refuse credit card payments. Any time passengers experience this situation, they should call 311 and report the taxi number, time and date, he said. Drivers who don’t take cards could be forced to go through re-training or face fines, Rose said.
Michael Patrick, a doorman at the Westin St. Francis in Union Square, said he often gets complaints about this from hotel guests.
“The drivers will go a few blocks and then say they don’t take cards,” Patrick said. “They make the passengers stop by the ATM if they don’t have cash.”
However, cabdrivers queuing recently in front of the St. Francis behaved otherwise. Over two days, nine different drivers polled by The SF Examiner said they took credit cards, despite gripes about the fee.
“I’d rather take the 5 percent hit than lose the fare,” said Mike Singha, a Town Taxi driver.
A Royal Taxi driver readily accepted a reporter’s credit card for an $8 ride.
Although few drivers admit to refusing credit cards, cabbies said they understand why it happens.
Earlier this year, the SFMTA approved a measure that let cab companies charge drivers a 5 percent card fee per fare. The move was designed to help out companies paying high monthly fees for credit card usage. Drivers, however, said the fee unfairly targets working-class individuals who already struggle to make a living in San Francisco.
“Drivers are not refusing credit cards,” said John Han, a taxi driver. “They’re refusing the unfair cost that comes with taking credit cards.”
While that stance may be appreciated among drivers, it doesn’t go over too well with passengers.
“I got kicked out a cab just the other day on Market Street because I didn’t have cash,” said Elizabeth Baksi. “That was not fun.”
4 comments:
In Atlanta, all of the cab companies except one charge the driver TEN percent, and that one holdout charges five percent.
What the companies don't seem to understand is that they are really charging the driver 33 and 17 percent, respectively.
Here's how that is so:
Drivers are not paid by the company. The company is paid by the driver. If the driver is doing well, then his or her gross pay works out to about 30 percent of receipts.
Now, it's important to keep in mind that no portion of that that 10 or 5 percent credit card fee comes out of the driver's expenses, or what the driver has to pay the company. All of that 10 percent off the top comes out of the 30 percent that the driver has left over for himself.
In that light, 10 percent off the top, coming out of the driver's 30 percent remaining, means that the driver makes ONE THIRD less money if the trip is paid for by credit card. The cab company, on the other hand, profits by marking up the credit card fees, since the company pays on average 2 percent in credit card fees since the recent changes in credit card laws. Amex is about 3 percent.
Even for the company that charges 5 percent off the top, that's still 17 percent out of the driver's net.
Imagine how you would feel if you were told that you were to be docked a third of your wage for every customer who pays with a credit card? You wouldn't like it very much.
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in phoenix-a bit different image. I've been using taxipass as a service to my customers. Lately, I find it hard to communicate with them. My customers get charged, and I dont get paid or contacted. My account gets frozen(although they accept charges) and redemption is denied. The last time took 6 working days to get paid. 2 days prior to thanksgiving meant almost 2 weeks before I got paid. And I have been charged for every slip I have ever remitted. Be careful before signing up!
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