This paper will be considered in public
1 Summary
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1.1 The purpose of this paper is to update the Committee on mandating card payment acceptance in taxis.
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1.2 This matter was discussed at Surface Transport Panel at its meeting on 22 October 2015.
2 Recommendation
2.1 The Committee is asked to note the paper and recommend that the Board agrees in respect of taxis:
(a) the following changes to come into effect on 2 April 2016:
(i) to remove the existing surcharge of up to 10 per cent of the fare payable or £1, whichever is greater, that passengers currently pay when paying by debit or credit card (a card);
(ii) mandate a maximum card payment transaction fee to drivers of 3 per cent of the total sum payable for TfL approved card payment devices. This will be included in the TfL guidelines for electronic payment devices; and
(iii)the minimum taxi fare (flagfall) to be increased by 20 pence from £2.40 to £2.60 per trip to compensate taxi drivers for costs associated with accepting card payments;
(b) the following changes to come into effect on 3 October 2016:
(i) to mandate card acceptance in all taxis and as, a minimum, devices should accept Chip and PIN, contactless and magnetic swipe payments;
(ii) to mandate acceptance of VISA and Mastercard payments as a minimum but drivers may also choose to accept other cards, such as American Express and Diners Club;
(iii)to mandate that card payment devices will be required to be fixed in the passenger compartment of the taxi so passengers stay in control of their card details at all times. [This could be fixed
equipment or handheld devices affixed to a cradle, approved by TfL to ensure passenger safety. Web payment devices, such as Hailo’s new payment solution are also to be permitted to co-exist alongside fixed equipment so drivers can offer hirers choice of payment methods]; and
(iv)to approve clear signage, visible from outside the vehicle, to make clear that all taxis now accept card payments. [This will be linked with a marketing campaign by TfL to make clear all taxis accept card payments]; and
(c) to investigate the feasibility of the following change coming into effect from April 2018:
(i) to mandate that all card payment devices are linked to the taximeter, noting that the industry needs to work towards standard solutions that integrate card payment devices with the taximeter.
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