Cab firm's bid for fare deal on chip & pin

http://www.eveningtimes.co.uk/news/display.var.2235173.0.cab_firms_bid_for_fare_deal_on_chip_pin.php

Cabs could soon carry chip and pin machines



by Chris Musson

GLASGOW taxi bosses are rethinking plans to allow customers to pay by chip-and-pin . . . to offer passengers better options.

Earlier this month it emerged that customers would be able to pay by card as part of a pilot scheme involving 20-30 Hackney cabs.

But following our article two weeks ago, Evening Times readers raised concerns about the system's limitations and hefty surcharges.

Glasgow Taxis, which has 971 of the city's 1400 black hacks' on its books, had said chip-and-pin would be used only for fares of £12 or above and that there would also be a £1.50 fee.

Today the firm said it was now looking for a better option for customers.

A spokesman said: "We are speaking to various chip-and-pin firms and weighing up the options.

"Some people misunderstood and thought the drivers would be getting the £1.50 but this isn't the case. It was the cost of using the equipment.

"We want to find a solution which will work for the customers and fit in with the requirements of the city council."

Glasgow Taxis said a £12 minimum fare for card payment was mooted because of a strict tariff set by Glasgow City Council.

Rules state drivers can charge customers a maximum of 12.5% on card transactions.

But the chip-and-pin company originally lined up by Glasgow Taxis was said to be asking for £1.50 per transaction and that is equal to 12.5% of £12. And it means that for any fare less than £12, drivers would not be able to charge customers £1.50.

APACS, the UK trade association for payment service firms, said today it was up to individual businesses whether to pass on the cost to the customer or absorb the fee.

If the plans are rolled out, Glasgow would become the first city in Scotland where taxi customers can pay using chip-and-pin.

Robert Dunabie, secretary of Glasgow Taxis, said: "We are trying to move with the times and show we're a forward-thinking industry.

"It also gives people another opportunity to get home safely when they don't have cash."

Allowing customers to pay for their trips while remaining in the cab will also avoid the need for drivers to stop at cashpoints during journeys, Mr Dunabie said.

Publication date 30/04/08