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Comment by callmeed | Hacker News Reader

Interesting ... I was just in Vegas and noticed that the credit card cabs hit the passenger with the processing fee. I believe it was $2 or $3.

I've also noticed in general that cabbies simply don't like credit card customers.

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In Chicago at least it's common for a cab driver to claim that the credit card machine is not working in an attempt to force people to pay cash. I couldn't tell you how many arguments I've gotten into with drivers over this.

Fortunately, the city requires the vast majority of cabs to be able to take credit to be allowed to pick up a fare. It's amazing how many times reminding the driver about this has made the machine start working...

Square is definitely in use in some cabs in Chicago already. In the past month, I have paid for two trips using Square. Both taxis seemed to have working credit card terminals, but the drivers instructed me to not use them. So evidently Square is preferable in at least some way. As a customer I certainly appreciate being able to receive an electronic receipt.

Now, do you think that is the driver personally using square to accept card payments as it's more economical for him to manage that stuff himself rather than relying on the cab company?

That seems likely, but I don't have evidence either way. In one case the transaction came through as what I presume was the driver's name, the other as "SQ *TAXI OF CHICAGO".

Still, the that fact that out of three recent cab rides, the two trips involving credit cards were both paid for using Square is an impressive sign.

As noted by others in this thread, drivers here regularly try to use the "machine is broken" tactic, despite the law. If Square's existence makes taking credit cards sufficiently easier for drivers then cab riders will directly benefit.

Last July I took a taxi in Chicago and the driver was using a Square card reader. I take a few taxis every week in various cities, always paying by credit card (so it can be expensed), and it was the first and only time I've seen a taxi driver using Square.

I asked him about it and he said it was personal and he had not seen any other drivers using one. It's non-sensical and as an earlier poster noted, also a bit of a political issue, since the existing terminals force the driver to pay 6% versus 2.75%, with no ad revenue sharing. I talk to the drivers here in Boston quite often, and they have no choice on the terminals they have in the cars. One would think that if drivers are forced to accept credit cards, they should at least have the option of choosing a vendor.

Our local McDonalds do this after about 10:00pm. They turn away so many customers that I'm convinced the late shift employees just don't want to do any work.

> Fortunately, the city requires the vast majority of cabs to be able to take credit to be allowed to pick up a fare.

Could you elaborate on this? I'm in Chicago and have had cab drivers claim the same thing (about the CC machine being broken)

Basically, one of the requirements to operate a Chicago cab* on any given day is to be able to accept credit cards. Because of this, if the driver flat out refuses to take your credit card they're not eligible for the fare. If you're really having problems with a driver I suggest calling 311 (or threatening to at least). I've never had to do this, but when I called to formally complain about a taxi the first question they asked is "are you in the cab?" so they must have some sort of action plan for that.

*I believe this only applies to fleet cabs (not independents), but that's virtually all of them anyway.

Note: 2am so I'm not going to look up the specifics right now, but if you want to know more, feel free to email me (in my profile).

The cabbies raised a ruckus when credits cards were introduced...however, data shows that when rides were cash only, cabbies received 10% tips. With credit cards, the average was 22%. Hard to complain about that: http://www.nytimes.com/2009/11/08/nyregion/08taxi.html

The Times also reported that the fact that cabs have cards - and livery cars do not - may have helped the taxi industry while hurting the private car business. http://www.nytimes.com/2009/03/25/nyregion/25taxis.html

Bet they get more rides, too.

I'm much more willing to catch a cab in NYC than I am in Chicago or Milwaukee, because I usually don't carry enough cash for a ride and I'm usually not in the mood to squabble with the driver. I swear, I can usually walk to my destination in the time it takes to watch a Chicago cabbie pantomime with the card reader in an effort to convince me it's broken.

Before you get in the cab ask, "Can you accept credit cards right now?" I found they won't hassle me if they know I'm onto their scam.

If you're not too short, they usually take the cash over the card. You get a cheap ride and they don't get all pissy. I do it all the time.

Yup - the three default options for tip are 20/25/30%, so people are tipping a lot more than they would in cash because they can just hit one of those buttons and not have to calculate a tip in their head.

Income tax + payroll taxes + state income tax can easily total 40 percent, so a 12 point bump in tips is not a big disincentive to tax avoidance.

And in NYC they have to pay city income tax on top of all that.

(If the cabbie incorporates and maintains a business bank account and payrolls himself and files taxes correctly, he'll only be paying 15-25% on some fares. I'd be surprised if any significant number of cabbies bothered with this.)

cabbies received 10% tips. With credit cards, the average was 22%. Hard to complain about that

Credit cards leave a trace and are taxable. Cash, not so much.

Livery cars take credit cards. The article explains that lets livery cars cost more than cabs, and that is why cabs are winning. Also, livery cars generally don't cost more than cabs for common trips like airport, so I take that whole article with the usual grain of salt NYT requires for its writing.

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