THE surcharge cost when paying for a cab with electronic cards will be halved as part of radical state government reforms of the taxi industry.
Taxi payment companies including Cabcharge will no longer be able “take customers for a ride” by slapping a 10 per cent extra charge when passengers pay with their credit or debit cards.
As part of a three-point reform package announced yesterday by Premier Barry O’Farrell and transport minister Gladys Berejiklian, the surcharge will be halved later in the year, subject to new legislation being passed.
The surcharge will be capped at 5 per cent, saving passengers $2.50 on a $50 fare.
Under the legislation, the variety of mobile phone taxi booking apps such as “go Catch” will be regulated for the first time.
And the government will also increase crackdowns on unsafe and unreliable cabs.
Critics have accused payment companies such as Cabcharge of unfairly profiting, saying the 10 per cent service fee was hard to justify when major card companies such as Visa and Mastercard only charge a 1 per cent surcharge.
The NSW government’s decision to cut card surcharges comes just three months after its Victorian counterparts introduced the same reform.
“I’ve heard the concerns of customers who have been taken for a ride by this excessive surcharge and that’s why we’ve listened and acted,” Mr O’Farrell said.
“Customers shouldn’t be unfairly penalised with excessive surcharges when it’s hard enough already for people to make ends meet.”
Ms Berejiklian said reforms will regulate taxi booking apps to ensure they offer proper customer services and the same privacy and safety standards that apply to booking services provided by taxi networks. “Taxi apps are a convenient way for customers to connect with a driver and are currently not addressed by outdated transport laws.”
Source: Daily telegraph