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Boston City Council to consider whether cab drivers getting screwed on credit-card readers

The council this week agreed to schedule a hearing on whether forcing Boston cabs to be equipped with credit-card machines last year is hurting individual drivers.

In a formal call for a hearing, Councilors Maureen Feeney and Stephen Murphy say the city's "radio associations" may be charging individual drivers more than they should (they're allowed to charge drivers 6% per transaction even if their banks charge less), the drivers get hit with additional bank fees, they can't access their money immediately and stupid passengers vandalize the machines.

Councilors Sal LaMattina, Charles Yancey, Bill Linehan, Chuck Turner and Rob Consalvo also signed onto the Feeney/Murphy resolution, which now goes to the council's Committee on City and Neighborhood Services and Veterans Affairs to get a hearing date.

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Comments

These credit card machines are a boon to banks and a bane to the drivers. This system takes an intitial 6% from the transaction, $1.50 fee for withdrawal, $1.50 fee for rectifying transactions that haven't gone through properly, in addition to whatever fees and interest are bourn by the card holder. Further, half the money taken in by a cab is used to pay the rent for the cab and gas, so 6% off the gross is 12% off the income- plus the fees.
The next time you pass a cab pulled over to the side of the road for an inordinate period of time and blocking traffic, try to take a look inside to see if it's the result of trying to get the credit card machine to function- it usually is. Next, try to see if the amount on the meter being charged exceeds $7.00- it usually doesn't. For efficiency and common sense... cash is king.

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Those machines aren't actually broken - and if they are, the driver is not allowed to be operating, per City of Boston regs. I pay cash 99% of the time, but the one time I tried to pay by credit card, I was told the machine wasn't working (at the end of my ride, of course), and when I said I didn't have enough cash for the fare, so they can either take the cash I had or see if the machine might work, VOILA! All of the sudden it was working. And I've heard this same story from friends. I'm all for cabbies making a living in this city, but taking credit cards is not some crazy requirement - look at NYC! Also, the city did a fare increase for cabs when this credit card thing went into effect to offset the increase in fees, so really, I can't feel bad.

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Maybe if you guys actually picked people up, and knew where you were going; people wouldn't be clamoring for better service and quicker transactions.

Try getting a cab in this city late at night, or getting a driver that doesn't have to be told by direction where to go.

I for one, feel no pity for them, or the system they operate in. They screw their customers, and the Medallion companies screw them.

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they have a sweat deal, being the ONLY means of public transport past midnight, in the Hub.

If they had to compete with the T, they might have a real problem on their hands.

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6% is an incredible ripoff for credit card fees. Paypal, which is no bargain, takes a little over 3%, and many supermarkets pay well under 2% in fees. There's no excuse for 6%, let along any additional transaction fee.

The real ripoff in Boston cabs (and many other cities) is the cost of the medallion. That little piece of tin on the cab costs about as much as a house, and you the cab rider are paying the mortgage with every fare.

The other thing I don't understand is why so many cabs are rolling dumpsters. For about $5 a mile you get to ride in a former police car that's been beat to death in car chases and all-night idling. I can't understand why cab drivers are so dead set against hybrids. The last fare increase was based on whining about the price of gas, but when they get a chance to get 60mpg, they whine about giving up the cop cars.

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The idling blows my mind. I understand if it's 15 degrees and you need the heat to be on....but most times they're idling for no reason at all. Except for the delivery business, how many industries are so eager to blow money like that?

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Most all drivers are forced to drive what the Cos have. They go the cheap way. They buy cheap used Police cars for a few thousand dollars. They lease it for big bucks to the struggling Cabbies. The Cabbies must get their own gas, so they do not care about the cost of the gas, and what the Cabbie has to pay.

And for the owner operators, do you know how much a Hybrid cost compared to a used Police care? A LOT of money. And the Maint on the hybrid is really high. Every priced a battery for one of those things? And there would be no warranty on the new car I would think. Its commercial and I do not thing that they would get a factory warranty, but I am not all that sure anymore. Plus teh insurance for a new car, much less a hybrid is astronomical I know that if a pizza driver or something like that used a car for business, it will void the warranty if they find out.

I think that the car insurance that a cabbie must pay on top of everything else is really bad. It seems that everybody has their hand out before the cabbie even makes a dime.

And it cost a big chunk of change to operate a cab.

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Well, since I left the house after submitting my first comment to start my shift, I'm glad to say I've now finished, and only three fares used cards! Yea! I even knew where I was going for every job, and by and large the nature of my passengers made for a really nice night.
Now, do some drivers falsely claim the machines don't work when they do? Yes.
Do the machines sometimes fail? Yes.
Two weeks ago today, my machine refused to recognize me (my entry code), but did allow for a forced entry so the meter would at least function. Where would the money from the cards go? I was told that was a good question. I was also told no one would be available to repair the problem until sometime on Monday. So yes, in order to make a living, I drove without accepting cards.
I agree some drivers can be maddening, but not most. People might consider why it is that immigrants from either war torn or famine stricken nations are often the only ones willing to do the job- it's really worth thinking about.
As for hybrids, I couldn't agree more that they are a great solution for the enviroment, the city's inhabitants, and drivers. The extra expense of the vehicle is offset every time you fill up, and 1,800+ vehicles running 24/7 at 11 mpg is just dumb. It's a shame some drivers (and whoever may have been behind them) overturned this requirement in court. I hope there's a chance the rule is re-written so that it can be enacted.

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I, too support the idea of hybrid taxi cabs. Traffic moves at a snail's pace downtown, particularly during the morning and late-afternoon/evening rush hours, with all the stop-and-go traffic, which consumes far more gasoline than anything, and adding to already-existing pollution. Hybrid taxi cabs would go a long way towards saving gasoline and helping the environment, and the city's inhabitants.

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NYC, Philly - note how there isn't any of your drama involved in a simple civilized transaction with a credit card.

Problems with the system on your end should be fixed on your end - they shouldn't be a mandate for shitty service or to shakedown customers for cash. Keep in mind that travellers on an expense account may have difficulty being reimbursed for their cab fare if they do NOT use their credit card, as they have every right to do.

I advise my company's out of town guests to avoid cabs and book a limo service for this very reason.

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The extra expense of the vehicle is offset every time you fill up

No, the extra expense is not offset every time you fill up. The extra expense takes about 8-10 years to cover for the average driver. The extra expense is not covered until your entire out-of-pocket cost is covered. Time to go back to school and take some business classes.

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Last night at about 1am I intervened in a situation outside my apartment. A woman coming home from the airport was being held (assaulted) by a cab driver who was refusing to let her leave because he could not accept her CC ("broken" reader) and she did not have cash for the fare. I came out of the apartment when I heard the cab driver yelling at the passenger, and the passenger screaming for help.

The cab driver was separated from the girl when I and some other Samaritans arrived and the police showed up quickly.

The city needs to start treating cabs with broken CC readers as they would treat a cab with a broken headlight: as unfit for service. I've never seen, as is suggested by this article, a vandalized CC reader. On many occasions after being told the machine was broken I've gone ahead and swiped my card anyway and had the transaction successfully processed. But I'm a 6 feet tall 30 year-old man, not a 5'3" 19 year old college co-ed. A cab driver is not likely to intimidate me like I'm sure that girl was last night.

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Yeesh.

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The city needs to start treating cabs with broken CC readers as they would treat a cab with a broken headlight: as unfit for service.

Cabs are "treated" as "unfit for service" when they have a broken headlight?

That's the funniest thing I've read all week. Cabs with one headlight are all over the place.

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to me, if a cab says that it takes credit cards on the side of the cab, then if its broken, and they did not tell you before hand, the rides on them. That/s deceptive. Bait an switch of some kind if you will.

I was in the industry for a short time, and saw some of this. But the drivers where I worked had the option of taking cards. But the Co (all the cars were leased) took 10% off the top from it. And they did not give you the cash, the applied it to your lease once the money was paid to them. That was a way to hold to hostage there I guess.

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Things aren't always what they seem when passing by on the streets, which is why it's good to have the police with their experience rectify certain situations. If the cab driver was acting inappropraiately in the above mentioned situation, I'm sure the police took action and no one, not the public or the other cab drivers need him. But things are often other than what they might appear. Last month a young lady took my cab down to the south shore. A lot of time and gas and $65 on the meter later, we were at her house. She swiped her card and the machine refused to accept it- insufficient funds. She told me it was my device etc. We went to a cash machine near her house, it also refused to accept her card. I told her she could walk from there to her home and I hoped never to see her again. She instead got back into the car and said she expected a ride home- I called the police. They told me they had no measures for collection of her fare, but would arrest her for fare evasion. With the police still on the phone, I told my passenger I didn't really want to have her arrested, but if she didn't get out, I would. Suddenly she decided she could walk the few blocks from the atm to her home. I just got to enjoy the burn.
In another case I witnessed, but was not the driver, two young ladies were sreaming for help through a cab's window as he proceeded at about two miles per hour on the street and through a gas station parking lot at Broadway and A in Southie. A couple of well intentioned Lancelots pulled over to assist the damsels. I pretty well knew what was happening as I walked by, and told the guys the situation wasn't what they thought it was. Fortunately, the South Boston police station was right there and I flagged for a uniformed patrolman who had just stepped out of the station. The cab stopped, the two girls bolted through the station's lot and over a fence behind it, and the two Lancelots looked at me in bewilderment. I told them some girls when they're ripping off cabbies scream for help as part of their system- they looked at each other and cracked up. The police spoke briefly to the driver and dispatched two cruisers to try and find the girls.

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I had heard that around here the the Police if they could find the jumpers, would arrest them for robbery as if it was a standing business. The thought was that the Cabbie was an independent business, and the cab was his office. It was robbery. But that was some time ago. I can tell you that many drivers will really do not like to go past a certain street downtown. It seems that pretty much most of the problem with this is with some (thugs) kids. And like they will get a ride from the eastern end and because they do not have bus money, or just flat out do not want to take the bus will call for the cab. You can not hail a cab here, unless it is in one of the very few, and unused Taxi stands. And they will tell you somewhere close to where they want to go, and then when they get close, the will bolt. Non one really cares. The Police have gotten to the point where they look down their nose at Cabbies anyway, and just say though luck. They make no real effort with it. And I guess that I can not blaim them to much. The fare jumpers have this well planned, and have done this more than once and have practice. And you can not go after them. The Police will arrest you then. Or, the jumpers will lead you into a place, and turn and rob you, or worse. I guess that the only thing that you can do is to write it off on your taxes. But I am not sure about that. And whats required.

I can tell you that there were some cabbies back then that if they did not like the area or the looks of the person, that they asked for a deposit. Something up front. That seemed to deture a lot of late nigh runners.

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Doesn't the increased fare rates in the face of $4/gallon gas more than offset this now that gas has been stabilized well under $3?

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No, the increase in many cases if not enough. I am not saying that the car fare should be 5 dollars a mile or anything like that. But in many places, the fares hardly ever get raised. And the cost of operations go up, and up. The cost to operate a cab is astronomical. People really have no idea how much the honest cabbie pays if he, or she does everything the right way, and keeps things above board.

The fares here have raised sense I was involved with the industry in 2002. And it was really needed. But it seems that as soon as the cabbies get a raise, some one will pluck it from them as soon as they get it.

One of the problems is that the Cab operations are now considered independent business men/women. It was not like this when I was a kid. You have professional cab drivers that were employed by the Cos. They made a commission, and I think in some cases a small hourly. Or on other cases, they just made hourly, and it all went the to cab Co except for tips, they went to the drivers. But the slowly got rid of the professional drivers. They now have no real responsibility and the driver pays it all threw very high leasing cost.

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There was a fare increase justified largely by the surge in gas prices. It had also been, I think from off the top, about seven years since the previous fare hike. What's really missing in much of this dialogue is the amount the banks are confiscating on transactions they have so little to do with. I believe the most just solution would be for the card holder to be told by the machine that they will incur the expense of using their cards. This would put an end to the unnecesary usage which creates havoc on the streets, hotel drive throughs etc., and would still provide the system for those who truly needed it.

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I believe the most just solution would be for the card holder to be told by the machine that they will incur the expense of using their cards.

I believe that surcharges for credit card use violate the terms of the credit card issuers' agreements, and maybe state law also. Discounts for cash are legal, though, which is how gas stations get around the law and stay within the terms.

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Today, from a cab driver:

"Hi, could you please pay cash? I am going on vacation, tomorrow, to London, Paris, and Nigeria."

So, we did.

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