Thursday, November 26, 2015

All London Taxis To Have Contactless Payment Facilities By Next Year.

Early this morning , we heard the news that from next year, every Taxi will have to have a TfL approved Contactless Credit Card payment system, under the terms of the conditions of fitness. Obviously, this will not be available free to the driver and in certain cases, the driver will have to pay a rental fee for a fitted unit. More news as and when it becomes available.

The driver will have to pay the card surcharge which we believe will be set at 3%, with the passenger paying just the metered fare.

To compensate the driver, there will be a small increase in the metered fare (20p). This means that passengers who pay cash, will be subsidising those wanting credit. (Can't wait to see the headlines in the papers when that comes in)

But it doesn't end there. This new measure will not put bums on seats as drivers will still be able to refuse. 

Contra to what many people believe, there has never really been a shortage of drivers able to take Card payments.....12,000 drivers on Hailo, 7,000 drivers on Gett, plus thousands of Cab App and iZettle users all with the facility to clear payments from street hails. You also have even more drivers on radio circuits that clear street hailed CCs. 

We have recently seen an assault on in-app card payments by a certain business competitor, complaining to Visa about CabApp's clearance of Visa payments by the driver. It's about to get very nasty.

In our opinion, the only people who will be laughing all the way to the bank, are the third party fixed system suppliers, who will be renting out their equipment. 

If TfL projections are correct, this business will be worth somewhere in the region of £24m a year, all of which is to be taken out of the drivers pocket. 

Read the statement from the Mayor made earlier today

A copy of the consultation report is available on our website: >Click Link<

Here's what the GLA Transport Committee had to say about the new measures:

The Transport Committee welcomes Transport for London’s (TfL) announcement that taxis will have to accept card and contactless payments from next year. 

Making the acceptance of card payments more attractive to cabbies was one of the important recommendations made in our ‘Future Proof’ report into the taxi and private hire industries - and it is clearly common sense. (How is paying a rental and paying the card surcharge, making card acceptance more attractive to driver?) 

Passengers will no longer have to worry about carrying cash and it is very positive news for drivers.  

We heard evidence from New York during our investigation, where the introduction of card payments boosted business (not so! The Yellow Cab industry in New York has been decimated by Uber who have now stepped up its assault on the trade by slashing fares by 20%. The industries medallions which were once worth billions are now virtually worthless and unsaleable) - so this gives licensed taxi drivers a golden opportunity, in a hugely competitive market.

The elimination of customer surcharges for card payments and the reduction in transaction fees paid by drivers should all add up to a better, more efficient service for customers. (The way they have phrased this passage, is as if drivers have been paying transaction fees which are now going to be reduced...again the GLA research seems to be years behind the reality of the situation).

Remember all the hyped up stories of little old ladies with suitcases going to Maida Avenue not being able to find a card payment cab at Paddington. They were splashed all over social media by the perfect "look at me" drivers saying that everyone should be made to take cards.

We tried to warn back then, be careful what you wish for with TfL, as it will always be the drivers who lose out and have to pay, but we were accused of being dinosaurs. 

TfL have shown they have no regard for public safety. Just look at the way they dish out new PH licenses which this week will top a record 93,000, that's £43.8 million in licence fees from PH

The public are being subjected to a PH service who's drivers have no clue where they are going, have to take their eyes off the road to follow a sat Nav regardless of where it tells them to go. Plus none of their drivers have any advanced driver qualifications, resulting in numerous collisions. 

London arteries have been clogged to the state where the capital is libel for a heart attack. London's  congestion is causing illegal pollution levels which is killing over 9,000 people every year.

TfL's legion should be changed from 

Every journey



Anonymous said...

Sad the Luddites at TFL won't let us use the iZettle smartphone app and readers to process payments, They really should move with the times and embrace new technology.

Anonymous said...

"The taking of credit cards should be made manditory." (LCDC)

Once a plumber, always a plumber. Fully qualified to pull the chain and flush this job of ours clean round the bend.

Brian said...

Wow...just as I think we can't sink any lower, tfl drag us down even deeper.
This is a paycut. Machine rental + 5% ....all for 20p on the meter ????
Do the maths.
Compelled to take cards, compelled to use their machine, compelled to take 5%.
The fumes from this have the stench of our exhaust con....anyone from the Mayors office or tfl connected in any way to the chosen card machine provider ?
I'm goin' home to drink beer.

Return of the Night Stalker... said...

Wave goodbye to tips, as many who like their flexible friend don't expose it to unnecessary cost. With cash punters invariably round up; with cards they don't.

We can always drive around with our fog lights on to let potential punters know they can have the ride on or off the meter for cash!

Andycab2 said...

The games over fellas and ladies anyway. But what a crazy thing to have put on us anyway, we should all take cards, anyone who thinks otherwise is a mug, its roughly 80/20 cash, when compulsory its gonna be 50/50 at worst, weres the problem???

Anonymous said...

Drive round with your fog lights on, give em a price, there happy, know what I mean...

Tony Casey said...

Tfl approved systems in Taxis are located to completely obstruct the rear vision for drivers being a real danger ,how can this get tfl approval without a back handed sweetner to the people who approve these systems.I don't want my NEW cabs electrical loom hacked away and possibly invalidating the warranty on my Taxi.
My Paypal system I use works just fine and payments are in my account within 2 hours without expensive fees to the multi-millionaires in Three Colts Lane,
A clear message to the Bosses at Palestra .WE ARE WATCHING YOU

Anonymous said...

50/50 is optimistic. IF,sorry I mean WHEN credit cards become compulsory and you can't refuse them, I think 90% cc would be more realistic.

Richard Busby said...

It also helps the police they will never have to come to your aid again because if the card is declined unlucky they have tried to pay and in the eyes of the law it's now a civil matter .
No protection tfl are not bothered .Lots of laws and rules and regs will have to be re written.
What amazes me is the announcement was made at eleven o'clock on a Wednesday night.

Anonymous said...

I see we are going to have to boycott verifone for cashing in on our grievences!

Anonymous said...

How do I charge upfront on a long journey without making it a set fare?

Anonymous said...

Anon 12:25 AM start meter, stop meter,enter card details, override fare and enter agreed fare, clear job, take passenger to agreed destination ☺

Anonymous said...

Izettle is under 3%, some muppet thinks 5% is good.

I won't touch verifone with a barge pole, the New York stats crap must have come through them. Another American corporation trying to muscle in.

TFL think like bus management, fit the reader to the vehicle, we are self employed sole traders not bus drivers, you don't pay the vehicle you pay the person! I've never paid a plumbers van.

TFL has a clear conflict of interest, No mention of OYSTER, they evidently still see us as rivals, I remember when they blocked the cab sharing from bus stops.

Damian said...

iZettle is in the list. I already have one and already pay less than the 3% charge for it. Really nothing should change for me but I suspect I'll have to fork out for new equipment etc. PITA!

Anonymous said...

I take cards personally but we are self employed small traders, tfl are the licensing authority they are not our paymasters so legally be interested to see where we stand. If didn't want to take cards I'd bag it up as drivers do now and as I've done in the past when hired a taxi with it fitted. Put a bag around it as I'm not registered with the company they don't have my details, have a hands free machine in my bag which I use most days. Another thought what about bankrupt drivers who have trouble getting bank accounts. The way this trade is going they'll be alot more of them in years to come as the cowboys at tfl churn out 1400 private licences a month and at the same time want drivers to buy 50k electric taxis from next year. Garages will want 350pw minimum to hire those you wait and see.

Anonymous said...

If TFL want a uniform system for us taking credit card then there really is no reason why we should accept 3%. Due to a large amount of taxi drivers on one system the percentage should be much lower. There is no reason why we should pay more than 1%.

Correct me if I'm wrong but i heard the paris taxi drivers only pay 0.58% which is very reasonable! The lowest iZettle goes is 1.50% if you clear £13000 per month, so i believe there is no way we should be paying more than 1% as millions of transactions will be cleared on a uniform system.

Anonymous said...

I had my credit card facility taken out by it's supplier [I rent a cab] they were charging 10% on the fare,theres us having every one telling us how cheap uber is and these parasites are wanting 10%, what happens if you get to your destination and the card isn't accepted?
at least with cash you can call the police

Damian said...

"Due to a large amount of taxi drivers on one system the percentage should be much lower. There is no reason why we should pay more than 1%."

Excellent point.

Jay Mc said...

I've got the monitor and black box with all the tech inside behind drivers seat. How can I either get it working again or play DVDs on the monitor screen?