TA

I feel there's a ripoff going on here.

Why does Cabcharge, the taxi credit card processing <agent|company|whatever>, get to charge 10% on every taxi journey (at least here in Perth), when the cost of equipment has surely been paid off by now, and the cost of credit card processing fees is not near 10%?

bensyd

They're a near monopoly.

TA

But isn't there any taxi regulatory authority that limits what they can charge?

simong

Probably a good start...

http://www.smh.com.au/interactive/2009/taxis/index.html

I have noticed though in Sydney a lot of drivers seem to have two machines, a Cabcharge one and a normal bank type one.. Credit cards seems to go through the normal one but it still charges the 10% I guess they are just creaming it rather than Reg?

bensyd

There's a whole raft of companies/industries that extort money through credit card surcharges. Qantas is one of the worst offenders.

The surcharge isn't considered part of the fare so isn't regulated.

asiaflyer

I seem to recall a few have tried to break Cabcharge's stranglehold but with no real luck as yet....and if anything so far have simply joined in by charging excessive fees.

However the government has commenced legal proceedings for anticompetitive conduct.
http://www.accc.gov.au/content/index.../itemId/879006
http://www.accc.gov.au/content/index...fromItemId/142

thadocta

As someone involved with the taxi industry, I can answer this one.

Drivers will NOT use the equipment if they are not guaranteed 100% of the fare to them. So a $100 fare, they want $100. Fair enough, otherwise, they will want cash.

Cabcharge use Telstra, and we all know what a bunch of money-sucking grubs they are. Also, the bank processing the transaction will want their percentage, so that is anotehr few points. Lastly, there is the company processing the transaction (Cabcharge in this case).

So the 10% actually goes towards bank fees, communications charges and processing fees, therefore ensuring that the cab driver (amongst the lowest paid of Australian workers) gets the full value of the fare they have just fulfilled.

The driver gets NONE of the surcharge when paying through the Cabcharge system.

I think 10% is a tad unreasonable, since some of the charges are fixed (communications, processing), regardless of the fare, but then, I am not the one making the decision.

Dave

ozzie

The Suncorp machines that the drivers use (instead of the cabcharge machine) gives 3-4% to the driver which is why the drivers prefer to use them.

number_6

Cabcharge is also a private voucher scheme, nothing to do with credit cards (companies can give vouchers to people to use for cabs, e.g. QF can give distressed cabs a Cabcharge voucher for their taxi to/from the airport) ... the 10% fee was originally to cover the cost of that processing. I have dim memories that originally no credit cards were accepted, that is a later addition and the 10% fee was for risk (as this predated having POS terminals in the cab).

CPMaverick

If you feel you are getting ripped off, just pay cash.

number_6

And the ACCC thinks the following of all this (note they weren't fined for overcharging pax, but for keeping other companies out of the cab charge market):

Taxi-fare payment company Cabcharge has been ordered to pay $15 million in penalties and costs for engaging in anti-competitive behaviour.

The Australian Competition and Consumer Commission (ACCC) took legal action against Cabcharge, claiming the company had breached the Trade Practices Act.....ACCC chairman Graeme Samuel says this is the highest penalty imposed in misuse of market power brought by the watchdog.