Taxi passengers win as reforms slash card fees

  • Credit and debit card fees slashed from 10% to 5%
  • Passengers no longer penalised for not paying with cash
  • First customer win from the Victorian Coalition Government’s major overhaul of the taxi industry

Taxi passengers paying their fare with a credit or debit card will pay less from 1 February 2014, with the fee for paying electronically to drop from 10 per cent to a maximum of five per cent inclusive of GST.

melbourne-taxisMinister for Public Transport Terry Mulder said the reduction in the fee was terrific news for all Victorians who will now begin to witness first-hand the government’s sweeping changes to the taxi and hire car industry.

“For far too long taxi passengers have been slugged with a ten per cent fee if they didn’t pay with cash,” Mr Mulder said.

“Our taxi reforms are aimed at improving service to passengers, and from tomorrow, people won’t be paying excessive charges just for paying with their card.”

Taxi Services Commission (TSC) Chair Graeme Samuel said that the reduction in the fee better reflects the cost of providing the service and is a win for passengers.

“Up until now, most providers have opted to charge 10 per cent of the transaction meaning that passengers are being penalised for paying electronically,” Mr Samuel said.

“We are increasingly moving away from cash transactions and it should be getting easier to pay electronically – not more difficult.”

Under current arrangements, a person paying a $100 fare would be slugged an additional $11 just for using a debit or credit card. From 1 February, the same fare will only attract a fee of $5 – more than halving the cost.

“A passenger should be able to pay by whatever means they chose, whether they use a credit card, debit card, or an app on their smartphone,” Mr Samuel said.

“It’s the passenger’s choice in how they pay and there shouldn’t be excessive financial penalties for choosing to pay in the most convenient way.”

Under the new arrangements, EFTPOS payment providers can charge a maximum of 5 per cent, but may choose to go even lower in order to differentiate themselves within the market.

“The fee for paying electronically has always been levied by the payment system provider and has never been part of the taxi metered fare,” Mr Samuel said.

“This change, like many of the other taxi reforms, is about both putting the customer first and making taxis a more viable and cost effective option for the travelling public.”

Passengers being charged in excess of five per cent after the 1 February 2014 should retain their receipt and contact the EFTPOS payment provider found at the top of the receipt to arrange a refund. Passengers wishing to provide feedback or make a complaint should contact the TSC.

From today, the TSC will also begin incorporating QR codes into its communication materials. Upon scanning, the QR codes will take the user to the latest information on taxi reform, making it easier to keep up-to-date on changes to the industry. The QR codes will soon appear in taxis across Victoria, with plans to also incorporate the easy to use codes in other materials used at major taxi ranks, hotel concierge and Melbourne Airport.

Remember, when travelling in a taxi it is a good idea to take down the taxi number and get a copy of your receipt. This will help you identify the taxi you’ve travelled in and allow the cab company or Taxi Services Commission to assist you.

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