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Chicago News Cooperative

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Cab Ride? $20. Accepting Credit? Priceless.

José Moré/Chicago News Cooperative

José Moré/Chicago News Cooperative

José Moré/Chicago News Cooperative

José Moré/Chicago News Cooperative

You think of yourself as being a reasonably good person: You make your bed, you recycle, you give up your seat on the bus. So why is it that every time you try to pay cab fare with a credit card, you are treated as if you just kicked a puppy? Twice?

Try not to take it personally. Despite laws requiring them to accept credit cards, many cabdrivers resist the practice (as evidenced by an epidemic of “broken” card readers). Others refuse plastic altogether — a move that could mean fines ranging from $75 to $1,000, says Efrat Stein, a spokeswoman for the Chicago Department of Business Affairs and Consumer Protection.

So what’s the big deal? For starters, there is the 5 percent transaction fee tacked on by the credit card companies. Then there is the time issue: it can take up to an hour to cash out credit card receipts. And finally, says Peter Enger, secretary of the United Taxidrivers Community Council, there is the fact that a lot of cabdrivers do not like being told what to do.

“It’s the principle of the thing,” Mr. Enger said. “We’re told that we’re independent contractors, we’re independent businessmen, and then we’re issued these rules as if we were employees, or, even worse, slaves.”

11 Responses to “Cab Ride? $20. Accepting Credit? Priceless.”

  1. [...] Reaves in The New York Times Chicago News Cooperative explains why cab drivers try to avoid taking credit card payments. It’s a nice little read. Reaves [...]

  2. It’s first, second, and third about that 5%. Can’t tell you how often customers have complained about other drivers pretending not to take credit, or worse, being berated for even asking. It’s terrible that the city forces this on us, that the cab companies pass on all the ‘handling’ fees on to drivers, but lying and abusing people who are asking for something well within their rights is no answer. It only makes us all look bad and, Lord knows, Chicago cabdrivers don’t need any more bad press.

  3. prattfall says:

    Those sound like failings of the cab companies that need to be fixed. If McDonalds can take my credit card for a $2.25 order and still make money hand over fist, the cab companies need to catch up. I almost never carry cash, and I’m sick of getting bitched at by cabbies when I go to pay with my card. Machine’s broken? Ok, lemme talk to dispatch, we’ll get that cleared right up.

  4. Steven says:

    What a bunch of cry babies! Get over it, cabbies overcharge their passengers (gas fees, rate increases), drive like crap, and are a traffic nuisance. I’m charging from now on….thanks for letting me know.

  5. kmark says:

    5 percent transaction fee? Right, I’m sure that’s it…. they don’t like taking credit cards is because they have to pay taxes on it. Just like the rest of us hard-working citizens pay income tax. I insist on using a credit card, in fact it’s listed under the “passengers bill of rights” posted inside every cab: “right to pay by credit card”.

    If they won’t take my card, I say sorry that’s all i have… guess they your out of luck, yet it’s amazing that those “Broken” meters magically work when they are given an ultimatum.

  6. Rrr. says:

    Um, why whenever I read these stories does no one ever mention the obvious? Cab drivers, like anyone else that works in a cash business (hair dressers, bartenders, ete), prefer cash as it is much easier to conceal earnings from the IRS. While I’m sure the 5% charge is significant, I would wager only claiming half of what you make is much more so.

  7. Daniel says:

    If a cabbie doesn’t want to take my credit card, I can just hop out. No sweat off my back, but it’s food off his table.

  8. [...] Chicago News Cooperative has a great story about why cabbies don’t want to take credit cards. Maybe they should look to NYC cabbies, who love [...]

  9. They aren’t “slaves” they just have regulations to follow like every other working person in this country. No industry is without procedures, rules and laws, and to liken the requirement of a credit card machine to slavery is extremely offensive.

  10. Mark says:

    It sure does take a long time to process a credit card transaction in Chicago. Other cities aren’t much better, although Chicago cab drivers have the worst attitude. The only city that does it well is NYC. They make it easy and quick. With the pre-determined tip levels of 15%, 20%, 25%, etc, it is very easy to tip 20% for doing the basics. If on business, I generally tip 25%. Chicago cab companies need to make it easy and a no-brainer for cabbies.

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