San Francisco Taxi Drivers To Pay Lower Credit Card Transaction Fees

SAN FRANCISCO (KCBS) – San Francisco taxi cab drivers got part of what they wanted on Tuesday as the Municipal Transportation Agency approved putting a limit on fees for credit card transactions.

Muni officials will outfit all taxicabs with rear-seat credit card readers in an effort to encourage more cabbies to accept plastic from customers.

KCBS’ Barbara Taylor Reports:

Drivers have objected to the 5 percent processing fee they’ve been charged for each credit card transaction. San Francisco Municipal Transportation Agency Executive Director Ed Reiskin said that approving a lower fee of 3.5 percent was the best possible option.

“It may not be perfect, but I think it represents an honest effort to try to advance the interests of improved taxi service,” Reiskin said.

Even with the lower fees, many cab drivers are still upset because they feel they should not have to pay any fees at all. Taxi company owners are also upset because they’ll have to pick up the difference.

Muni officials said they hope the change forces more taxi drivers to follow the law and pick up passengers who are paying by credit card.

(Copyright 2012 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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