Blog

Cabs fight back against added credit card fees

January 24, 2012

Relatively new regulations, that went into effect in April, have caused taxicab drivers in San Francisco stress due to the increased fees involved.

Relatively new regulations, that went into effect in April, have caused taxicab drivers in San Francisco stress due to the increased fees involved.

The Wall Street Journal reports that the transaction fees have shifted from the cab companies to the drivers after passage of the new law. In opposition, many drivers went as far as protesting at City Hall over the new expenses.

To combat the fees, some cab drivers have been telling people the machines are broken or begun using alternative readers such as the Square mobile payment system.

In other cases, the cab companies have agreed to incur the cost despite the fact that it is no longer required.

“We simply feel that this is an unfair charge and that it has negative repercussions,” said Mark Gruberg, a member of a can company’s board of managers, in an interview with the newspaper. “When drivers are forced to pay these charges, they are reluctant to take credit cards, and that has an impact on service.”

All over the country, cab drivers have raised concerns over passengers using credit cards for payment. Some municipalities have cast legislation that forces them to accept the merchant services operation.

Back To Blog