Boston Demands Taxicabs Accept Plastic

Boston has recently overhauled its taxicab regulations, and as part of the new rules, has mandated that cabs be equipped for credit card processing. This should allow Boston customers to pay with plastic in the cab itself. This move should make it more convenient for customers who do not carry cash, and also reduce the risk a cab driver takes when handling large amounts of cash while driving a shift.
The rule is listed as follows:

"Be Equipped for Credit Card Processing: all taxicabs shall be equipped with an electronic credit card processing capability. Such equipment shall allow the passenger to swipe the card in the rear compartment of the taxicab without handing the card to the Driver. Such equipment shall list fare, tolls, fees, and tips separately for processing purposes. Such equipment shall have the ability to electronically authorize the transaction in a timely manner."

Boston joins New York in implementing the new law. New York has required all of its taxis to be compliant by October 2008. In addition to New York and Boston, other cities have taken steps to enact laws requiring taxicabs to accept credit cards.

In Seattle, as of July 15, 2005; the municipal code requires all Class A taxicabs to accept credit cards. In DC, the code not only states the taxi driver must accept credit card payment, but goes further to state that there is not a minimum fare amount to be charged and it must be posted that credit cards are accepted. Furthermore, the law states that there should not be any additional fees imposed due to the use of a credit card.

Philadelphia mandates credit and debit cards via a terminal in the passenger area. If the equipment malfunctions, procedures are in place to allow the transaction to be placed by a phone call to the company office.

In San Antonio, it is a law that credit cards are required to be accepted, however, the Taxi Worker's Alliance is fighting it, stating that the workers are independent contractors and should be allowed to decide if they want to allow credit cards to be accepted or not.

The City of Chicago mandated that wireless credit card services be offered by all taxicabs by June 1, 2004. The Chicago Department of Consumer Services supports the city's decision for this mandate, citing that it was "good to get cash" out of cabs for the safety of the driver and passenger alike. Chicago requires all taxicabs have equipment that allows for credit card, debit card, smart card payment and all other electronic payment methods. Procedures are in place for producing wireless transactions.

In Los Angeles, the law requires the taximeter to be able to digitally transmit credit/debit card transactions. Additionally, the cab must have signs stating the minimum amount for charges as well as requiring the customer to notify the driver of credit card usage prior to trip.

These cities have set an example of what the requirements will be for payment processing in cabs going forward, as the United States moves away from cash in all situations. It would not be unexpected to see other major cities follow suit in mandating plastic as a form of paying a taxicab fare.