This paper will be considered in public
1.1 The purpose of this paper is to update the Committee on mandating card payment acceptance in taxis.
1.2 This matter was discussed at Surface Transport Panel at its meeting on 22 October 2015.
2.1 The Committee is asked to note the paper and recommend that the Board agrees in respect of taxis:
(a) the following changes to come into effect on 2 April 2016:
(i) to remove the existing surcharge of up to 10 per cent of the fare payable or £1, whichever is greater, that passengers currently pay when paying by debit or credit card (a card);
(ii) mandate a maximum card payment transaction fee to drivers of 3 per cent of the total sum payable for TfL approved card payment devices. This will be included in the TfL guidelines for electronic payment devices; and
(iii)the minimum taxi fare (flagfall) to be increased by 20 pence from £2.40 to £2.60 per trip to compensate taxi drivers for costs associated with accepting card payments;
(b) the following changes to come into effect on 3 October 2016:
(i) to mandate card acceptance in all taxis and as, a minimum, devices should accept Chip and PIN, contactless and magnetic swipe payments;
(ii) to mandate acceptance of VISA and Mastercard payments as a minimum but drivers may also choose to accept other cards, such as American Express and Diners Club;
(iii)to mandate that card payment devices will be required to be fixed in the passenger compartment of the taxi so passengers stay in control of their card details at all times. [This could be fixed
equipment or handheld devices affixed to a cradle, approved by TfL to ensure passenger safety. Web payment devices, such as Hailo’s new payment solution are also to be permitted to co-exist alongside fixed equipment so drivers can offer hirers choice of payment methods]; and
(iv)to approve clear signage, visible from outside the vehicle, to make clear that all taxis now accept card payments. [This will be linked with a marketing campaign by TfL to make clear all taxis accept card payments]; and
(c) to investigate the feasibility of the following change coming into effect from April 2018:
(i) to mandate that all card payment devices are linked to the taximeter, noting that the industry needs to work towards standard solutions that integrate card payment devices with the taximeter.