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How passive-aggressive cab drivers resist credit cards
By adamg on Thu, 03/03/2011 - 8:06am
Spearmintkitten couldn't help but notice this sign in her cab yesterday.
Copyright Spearmintkitten. Tagged as universalhub on Flickr.
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Comments
I have no problem with that
I have no problem with that sign. At least they're not telling you that their machine is "broken," and it allows for the passenger to account for this when leaving a tip.
Agree 100%. He's just stating
Agree 100%. He's just stating the facts, in case you were trying to decide whether to use cash or credit card. If you have the cash in your pocket, you can give him an extra "6% tip" at no actual cost to yourself.
If your company requires you use a charge card
... you know exactly how much to add to the tip, which my company also pays.
I've also seen a friendly sign with "Cash Preferred - MC/Visa/Amex accepted" in customer-friendly font mix.
Then again, didn't they get a raise in fares to cover this? No matter - this is a refreshing customer-oriented communication.
They need to add a note "You
They need to add a note "You are traveling in the most expensive cab fleet in the country, however there is no corresponding quality."
That Goes for Boston in General
"you are travelling in one of the highest cost-of-living cities in the country, ..."
And all riders pay when the
And all riders pay when the driver "forgets" to turn, resulting in an extra mile of fare.
The babies.
That's when they get no tip.
That's when they get no tip.
I saw it too
To me the thing that stood out is how it was professionally printed, rather than a handmade sign. Made me think my driver might not be the only one displaying it.
and no spelling errors?
and no spelling errors? something is going on here...
Is it really 6%????
Just curious....
A few years ago, I was treasurer for a really small non-profit and we accepted credit cards for various purchases. We didn't get charged anywhere near 6%, it was closer to 3%.
6% seems high. Does anybody have any first-hand knowledge of CC fees? Lots of references I've found on the net mention fees of about 2%.
Check WBUR's recent series
WBUR's Radio Boston recently had a really good series on this topic, explaining the fees and the reasons cabs are spendy. Here's the first part.
And, yes, the fee for each driver for credit cards really is 6 percent.
Plus, there’s the 6 percent that the credit card companies take out of every fare for their processing fee. As much as cab drivers might complain about it, that cost was factored into the last rate hike that gave Boston the dubious distinction of having the highest per-mile fees of any big city in North America.
And here's another with more driver complaints about the six percent credit card rate. It includes this coda:
Just keep in mind, if the driver says the machine is not working, there is a chance he’s telling you the truth.
So the 6% is already accounted for?
From the WBUR language you quoted, it appears that the 6% transaction cost was factored into the most recent fare hike for all cabs. So, what is the problem?
So does that mean
that if you pay in cash, you can deduct 6% from your fare because the driver doesn't have the added expense of a credit card transaction? Booyah!
In what other city...
Can one choose to pay $20 to get a cab ride around Boston or take a bus to NYC, 4 hours away? Really tho?
Probably includes processing company
Yes, 6% seems high, but I bet that is covering the costs of the reader as well as what ever the bank is charging them. Just a guess on my part.
Don't forget the rate
Don't forget the rate increase we saw when the readers came into affect was 6%. So it works out the same for them. Take it up with the government cab drivers.
Actually they'd be making a
Actually they'd be making a little more money wouldn't they? Cause they'd be making equal money on credit card swipes and more money on cash fares.
Also IIRC they did a study in New York when they added credit cards that showed that passengers are more likely to tip when they use a credit card.
Also IIRC they did a study in
Credit cards prevents drivers from hiding the tip from tax reporting.
So, cab drivers get a loop
So, cab drivers get a loop hole like the wealthiest americans? Wll, I guess this is actually progressive.
I saw this and felt like I
I saw this and felt like I should make little cards that say "All passenger fares were raised to cover credit card transactions even if you don't use one."
Turn about is fair play
Better yet, put up your own sign on the back of the driver's seat saying that. (Anyway, cabs are for wusses.)
Does the driver pay the 6%?
Does the driver pay the 6% or is it the owner of the taxi co.? Either way, I'm pretty sure that I don't really care. When you go to pay for coffee or your groceries, etc. with a credit card, there is no sign that says "________ merchant pays x% on all charges." This is part of the cost of doing business in 2011.
Kinda
Per the great BUR article mentioned above, cabbies pay a $95 rental to get their cab. Everything they make over $95 is theirs to keep. So, if a cabbie only gets $100 in credit card charges in a night, guess what, he lost a buck for his hard work.
As for the merchant thing - every store owner can make a cost-benefit analysis between taking cash only (and probably experiencing some lost business) or paying the credit card fee. Cabbies in Boston don't get that option - taking plastic is mandatory. So I understand their gripe.
"Taking Plastic is Mandatory"
I think I just figured out why the non-profit mentioned above got charged a low competitive rate, while the cab drivers get the "we have you over a barrel and you don't have any room to negotiate" higher fees.
Credit card companies: the only people that can make me want to take the side of Boston cab drivers.
Neither do the cabbies in NYC
Yet you don't see similar griping in New York. As for the cost-benefit analysis, I assume that is done at the ownership level. That is, the owners of the company (and the license) can decide if it is worth it to operate the cab given the statutorily imposed use of cc machines.
Not true
It's the same thing in NY. You get the "oh the machine is broken" spiel the moment they see you reach for that piece of plastic. Usually when you say "great, free ride" and go to get out they'll suddenly change their tune.
Au Chocolat on High Street
Au Chocolat on High Street has a sign that points out how there are charges on credit cards that impact small businesses or some other nonsense like that. Listen, you have costs to run a business, account for them in your prices. Or offer a cash discount if you want. Don't try to guilt me into improving your profit margin.
Never mind the fact that cash sales are much easier to "forget" to claim on their taxes.
Cash discounts are great.
Cash discounts are great. But Boston cabbies aren't allowed to offer them.
credit card rates were negotiated by drivers
is that the 6% was negotiated by the association which represents the drivers and cab companies. So if they are unhappy with the 6% (which they should be, given that it is 2% or 3% in many other cities...) they should take it up with the association to which they pay dues for representing their interests.
Part of that negotiation may
Part of that negotiation may have been what credit card companies expect to lose in fraudulent card use, and how high a fee is needed to compensate. I'd bet that those losses are higher for a cab than for, say, a non-profit receiving online donations.
I'd guess it's 6% because
I'd guess it's 6% because there's a wireless connection involved, and also because this particular credit card processor has a monopoly on the Boston taxi business. Stores can choose from multiple processors, which keeps the processor's component of the fee (as opposed to Mastercard/Visa's portion) competitive.
I would really like to see a breakdown
After Googling around, 2% seems to be the average charge for a retail transaction. 6% is a lot more than 2%.
Anybody in the cab business able to give us a breakdown of the 6% charge?
sign probably violates agreement with Visa
I heard somewhere that businesses that accept Visa or Mastercard are not allowed to mention the transaction fees to their customers, so this sign is probably a violation of their agreement.
I'd guess that most cash-only businesses are trying to evade taxes. Maybe it is worth giving up all the extra business you get taking credit cards.
I'd support a law banning
I'd support a law banning that rule (if the rule exists). It's bad enough that credit card companies collect what amounts to a 2% tax on the economy; it would be even worse if they strong-armed businesses into keeping that fee a secret.
The obvious retort...
Something like this:
But where could one hang the sign that the driver would see it?
The 6%
Every time we have a problem with one of the new regulations hackney says "that was covered under the last meter rate increase" There are serious questions as to whether or not the proper bureaucratic process was followed when that meter rate increase took place.
Even so the increase we got has been completely eaten up by the sluggish economy,processing fees, and higher rental fees paid by drivers on the cars. The next time someone tells you Boston has the most expensive rates of any major American city please try to educate them that we are the cheapest ion Eastern Mass. Every surrounding city and town has higher per mile and flat rates.
The 6% fee was negotiated by the city on behalf of the industry. They did this by simply letting any interested processing provider know that 6% was the maximum they would allow them to charge. Weird how people who never have to turn a profit negotiated a horrible deal on our behalf huh?
Also if one of the "reporters" covering Boston Cabs could ask hackney why they refuse to honor a new federal law that allows businesses that accept credit cards to charge a legally acceptable $10 minimum that would be great. Credit card machines in taxis was a great idea but, so was the BIG DIG. It's all in the implementation and thus far this was implemented in piss poor fashion.
twitter: @bostontaxicab
http://southiecab.com
$10 minimum
Dodd-Frank requires credit card companies to allow merchants the right to set a $10 charge minimum. As I read it, the law does not require governments, regulators (like BPD Hackney), trade associations, or any other entity to allow minimums. Tell me if I'm reading it wrong.
From page 698...
‘‘(3) LIMITATION ON RESTRICTIONS ON SETTING TRANSACTION
MINIMUMS OR MAXIMUMS.—
‘‘(A) IN GENERAL.—A payment card network shall not,
directly or through any agent, processor, or licensed
member of the network, by contract, requirement, condition,
penalty, or otherwise, inhibit the ability—
‘‘(i) of any person to set a minimum dollar value
for the acceptance by that person of credit cards, to
the extent that —
‘‘(I) such minimum dollar value does not differentiate
between issuers or between payment
card networks; and
‘‘(II) such minimum dollar value does not
exceed $10.00; or
‘‘(ii) of any Federal agency or institution of higher
education to set a maximum dollar value for the acceptance
by that Federal agency or institution of higher
education of credit cards, to the extent that such maximum
dollar value does not differentiate between
issuers or between payment card networks.
http://www.sec.gov/about/laws/wallstreetreform-cpa...
The minimum fee.
AdamR,
If you read through it entirely it mentions something about "member of the network" not being allowed to prevent a member from setting a minimum. If hackney regulates are maximum % rate mandates which processing companies we can use and has complete access to all our transaction via the computers provided by that network how sir could they not be a member of the network?
Even still. Say hackney has found the perfect loophole here.. it's the same kind of creative use of legislation Mitt Romney used to deny out of state gays the right to marry in Massachusetts.
Why is it only o.k. to deny people their rights when they drive taxis?
Bad experience today -August 24, 2012
The taxi cab driver refused to hand me my change, saying aloud 2 times that he wouldn't do that until I told him how much I would tip and that I was obligated to.
I calmly asked him to hand me my money and had my hand on speed dial to ring the police.
Once i got my money, I calmly took my bag and walked away. I always tip even though I am a student, who has no source of livelihood. I couldn't believe the nerve.
Whats should I do? Call the cab service? Took their number.