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The Post has a story today reporting the installation of touch-screen video credit card machines inside 200 area taxi cabs, the first we've heard of such devices being adopted by a local cab company. Granted, it's a Maryland cab company, Barwood Taxi, but we've gotta be willing to start somewhere, we suppose. By all accounts based on the experiences of other cities, like New York and Philadelphia, that have mandated credit card machines in taxis, the devices are a win-win for drivers and passengers alike. The self-use machines have a tendency to increase tipping, and drivers no longer have to carry around so much cash to make change, something any semi-regular D.C. taxi customer can tell you is often an issue inside this city.
There's absolutely nothing stopping an independent D.C. taxi operator from installing one of these devices, but for whatever reason – cabbies fear change, we suppose – they haven't. But if Mayor Fenty can force all of them to adopt meters, he could just as easily force all of them install credit card machines, no? And if it was a citywide adoption, presumably one of the companies that makes the machines could work out a deal so it wouldn't cost too much for the driver to have them put in.
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There's absolutely nothing stopping an independent D.C. taxi operator from installing one of these devices...
Credit card commissions/fees?
P.S. Absolutely nuthin' and variations of same are reserved for anti-war lyrics.
Huah, good God y'all, are you accusing Sommer of unsupported editorializing?
As usual.
You, me and Hank Krinkle need to meet to discuss the revolution!
Anti-war lyrics and classic Russian noviels, like Tolstoy's "War, What is it Good For?"
Say it again.
Yes. common_tater is right. It's not just the transaction fees that skim money off the top, tips may also decrease.
For example, on a $7.50 cab ride I'm likely to just hand the driver a ten and get out of the cab... it's admittedly awkward to ask for change back on that amount. However, if one is free to use credit cards many would probably just add a dollar or two to the amount, negating the "round up" effect.
Finally, credit cards take the tax-evasive fun out of the currently cash-only business by significantly under reporting your earnings to the IRS. Credit card transactions leave a fantastic paper trail of just exactly how much the driver earned and takes all the fun out of paying taxes.
Well, at least in NYC, according to the Post article, tips have increased 5% over the past two years as a result of installing the card readers.
That's likely because cash tip amounts were being underreported by the cabbies prior to credit card machine installation.
There's no paper trail with a cash tip, and any service industry professional will tell you that it's common to underreport cash tip amounts for taxes.
So, let's be conservative and say cash tips were underreported by 10%. Then, post-credit card machine, there could appear to be a 5% increase in tips even though there's actually a decrease of over 5%.
That's likely because cash tip amounts were being underreported by the cabbies prior to credit card machine installation.
There's no paper trail with a cash tip, and any service industry professional will tell you that it's common to underreport cash tip amounts for taxes.
So, let's be conservative and say cash tips were underreported by 10%. Then, post-credit card machine, there could appear to be a 5% increase in tips even though there's actually a decrease of over 5%.
That's likely because cash tip amounts were being underreported by the cabbies prior to credit card machine installation.
There's no paper trail with a cash tip, and any service industry professional will tell you that it's common to underreport cash tip amounts for taxes.
So, let's be conservative and say cash tips were underreported by 10%. Then, post-credit card machine, there could appear to be a 5% increase in tips even though there's actually a decrease of over 5%.
Let assume what you're saying is accurate. The notion that accommodating the illegal practice of underreporting income/tips is a reasonable justification for not installing credit card machines is completely bogus. I really have little sympathy for cabbies who are deliberately breaking the law. Either way, ethical considerations aside, the machines are consumer-friendly, and as someone who rarely carries cash, I agree with others that I would be far more likely to use cabs if I knew I could use a credit card.
I'm not saying "accommodating the illegal practice of underreporting income/tips is a reasonable justification for not installing credit card machines is completely bogus."
I was just pointing out that some info provided by Sommer (& the Post) doesn't have much backing it up. Personally, I'm for being able to use a credit card due to the convenience, but using dubious "facts" to win people over serves no one well.
And if Fenty can force them to install credit card machines,... why not mandatory wet bars too? Leather seats? Odor eater christmas trees?!?!?!?!?!?!?!
I better sit down....
Sommer: There's absolutely nothing stopping an independent D.C. taxi operator from installing one of these devices,
Really? What about credit card transaction fees? On a $5 fare, the cabbie would likely only get about $4.50 or so. Add that $0.50 up over the number of fares in a day, and it's a significant loss. This isn't even considering the (likely hefty) installation/start-up cost for the machine.
Also, you stated, "self-use machines have a tendency to increase tipping." On what research are you basing this statement?
Ever worked a restaurant, where it's not uncommon for people to adjust the credit card tip just to make the total "even" (e.g.: tipping $1.20 on a $8.80 check to make the total an even $10)?
Did you even read the Post article?
Also, you stated, "self-use machines have a tendency to increase tipping." On what research are you basing this statement?
Here is a quote from the article:
Driver profits might also be affected. In New York during the past two years, the systems have increased tipping by 5 percent, LaGasse said.
Does that take into account that cash tips were most likely underreported? What appears on paper to be an increase could most likely be a decrease.
Also other points of note for allowing CC machines:
If I dont have cash on me, I forgo a cab altogether and walk or find other transportation. Would a cab drive rather get my $8.50 in fare and pay $.50 in transaction fees or not have that fare at all. It is my understanding that most cabbies in DC 'rent' their vehicle for the night and they need to make a certain amount in fares and the rest is theirs to keep. So, wouldnt the potential for increased riders be beneficial?
Not carrying cash would be safer for cab drivers. Having as much as several hundred dollars on cash can be enticing to a potential robber.
Also, how many times have you gotten in a cab only to have the driver tell you that he doesn't have change. How annoying is that?
The idea that accepting credit cards reduces profits is simply not borne out in reality. Anywhere. How many businesses can you think of that don't take credit cards? Restaurants? Even shady corner stores do.
Taking credit cards means you get business that you otherwise would not. I have personally foregone cab trips, or had to short a tip, on more than one occasion because I didn't have the cash. Others have noted the same.
So the only reason why cabs would be against them (which I fully expect DC cabs to be) is if there was something illegitimate that accepting credit cards would prevent. Such as, actual accounting of tips, an electronic record of their cab number, and the charges they made for a given trip that would be available to the passenger if there's a dispute, and so on.
Actually, lots of places don't accept credit cards, especially if they have enough business that they aren't losing revenue by having a portion of the potential clientele go elsewhere. (Ray's Hell Burger only accepts cash, for example.)
Places that usually do very small transactions (e.g. under a few dollars) and that aren't part of a large chain also tend not to accept cards, both because the fees eat up a proportionally larger piece of their business on small transactions and because cash transactions make it easier to play fast and loose on taxes, which smaller places seem more inclined to do. (Food carts are usually in both of those categories.)
Good thing criminals and cabbies in DC are too stupid to run a credit card skimming operation.
Don't be so sure, monkey: http://www.wired.com/threatlevel/2009/03/washington/
But if Mayor Fenty can force all of them to adopt meters, he could just as easily force all of them install credit card machines, no?
Don't see how he could. Meters ensure accurate pricing (in theory). I don't see how dictating what form of payment they accept is similar.
DC Cabs will never adopt this, because it will provide an electronic paper trail. Individual incidents of overcharging would be on record, and you would actually be able to do an analysis of trips and the cost, putting an end once and for all to the idea that they make less money than cabbies everywhere else.
Expect strike that nobody notices next week.
Here's a take on credit card and Chicago cabs, which includes this nugget:
"A study by Visa Inc. showed that New York cabdrivers are receiving a 22 percent tip on average when credit or debit cards are used, versus a 15 percent tip on cash fare payments."
It also notes that including a Google maps display makes it harder for cabbies to scam passengers. but it does say the drivers face about a 5% processing charge
Why on earth do the cabs have to pay a 5% charge to accept credit cards?
I'm an INDIVIDUAL and I can accept Visa/MC for 2.05% + 25 cents per transaction. Costco. It's just not that hard. I have a hard time believing that an actual cab company can't get a rate at least as good as I personally can. Either someone's stupid, someone else is profiting, or someone's lying.
Yeah, that struck me as fairly high. No sure where they got that from.
Red Top Cab in VA also has credit card machines, but they're installed up front and operated by the cabbies. You just have to tell them how much tip you want added to the charge.
The touchscreens in NYC cabs are great but it does get kind of annoying to have Tina Fey, Michael Bloomberg and/or Donald Trump start talking to you the minute you sit down every single time.
as long as they also install maps up front for the cab drivers that don't seem to know where anything is outside of the CBD, i'm all for it.
But if Mayor Fenty can force all of them to adopt meters, he could just as easily force all of them install credit card machines, no?
With great power, comes great responsibility...
You won't find a bigger critic of DC cabs than me, but you know what? I get the feeling that things have improved a lot since the meters. (which, of course, Martin hates because DC only did it under Congressional threat).
It's just my sense that the cabs are a bit nicer, the drivers more polite. Maybe I've just been lucky or maybe the scammers have found a new line of work. Anyone else feeling this?
Oh, and to you cabbies who are bitching about not making as much money as last year. The economy sucks. My household income is down XX% this year. F@ck you.
listen to this fool! cab drivers make less money this year than they did 15 years ago! all of this hubbub about cabs accepting credit cards and not a word on tuesday's cab strike or the one planned for october 2... come on dcist
I take it you missed this article? Or maybe it doesn't count because it doesn't sufficiently fellate the cabbies' agenda? Kinda hard to report a story when nothing actually happened.
You know what else? Buggywhip manufacturers make less now than they did 100 years ago! Where's the outrage?
What is your source that they made less this year than in 15 years? (other than the guy in the article claiming that)
And I am sure this has nothing to do with it either
New applicants have inundated the system since tests resumed last year after the city stopped giving exams when questions were leaked. There was evidence of cheating in 2005.--WaPo
Increased competitors in a shrunken market. Yup, it must be the meter's fault.
When it comes to cabs in this town, it always comes down to 2 race-baiting arguments:
1. Cabs have historically been the only type of small business that African-Americans could own. Back when banks wouldn't loan a dime to a black man, he could buy a used car and run a cab business.
2. Cabs are the only pathway to prosperity for Ethopian, Eritrean, and Somali immigrants who would otherwise have no work?
Both of these arguments, of course, have nothing whatsoever to do with the basic issue of cab service and safety in 2009, but in DC, race-baiting still works.
So all you whining white people with your fancy credit cards and your desire to be driven in a car built in this decade should just shut up and let this great institution of civil rights, the run down, dangerous, unfit for any other city cab, take you where the driver thinks you want to go, for what the driver thinks the fare should be.
Gee if only there was someone on Jim Graham's staff who could oversee taxicab legislation so we could keep everything above board.
if only.
"I'm from the government and I'm here to help."
hello, zombie reagan. just come closer to this shotgun...
This is the United States of America. How can you force me to accept anything for my services other than legal tender? A credit card is not legal tender. United States Currency is legal tender. I am surprised that the New York, Philadelphia and Chicago drivers did not sue on this point.
I accept the cards. I will accept a card for any fare, short or long. I choose to pay for the account and hardware that allows me to accept them. This gives me a competitive advantage over Tesfaye, Abdullah and Igbwe. This is how a capitalist system works. If you want to build a better business, you must invest in it. People choose to patronise one business over another because they feel that one business gives them more for their dollar or gives better service than another. The gubbamint has no business micromanaging my business.
One of the wonderful things about the credit card terminal is that when people spring a fifty, hundred or a check on me, I tell them to put it away and get out the credit card. Only once did some obnoxious Haitian not have a credit card, but did have an attitude about my not having change for a hundred.
Leave it up to the driver. The same goes for air-conditioning. I always have mine on if the temperature is above 80F. I do not know how many times, in the middle of July, I would see four hands go up and Abdullah would pull to the kerb to pick them up. Yup, Abdullah's windows were down, so I pulled behing him, shouted 'A/C here and it is ON!'. Of course, the people closed the doors to Abdullah's cab and got into mine. And yes, Abdullah ran back to my cab, danced around it and hollered swear words in whatever language he was speaking, but, all that I had to say to him was 'Welcome to America, Abdullah!'.
If you want to ride a credit card cab, call one. There are three dispatch services in the City. Tell them when you call that you want a credit card cab. You can do the same for A/C. .....and....on tipping.........the tips are pretty good for the longer fares, but, in many cases, on a short fare, people do not tip at all.
thanks for the input, i think...