The Board of Directors of the San Francisco Municipal Transportation Agency (SFMTA) recently approved a new cap on credit cards fees that taxicab drivers are required to pay to San Francisco taxi companies. The maximum rate to process credit and debit card transactions was reduced from 5.0% to 3.5%.
The new lower credit card fees was seen as a compromise to lower costs for San Francisco taxicab drivers while ensuring drivers accept credit cards as payment for fares.
In July 2011, the SFMTA mandated that all San Francisco taxis accept debit and credit cards. In December 2011, the San Francisco Examiner reported that taxicab drivers “will regularly avoid passengers looking to charge their fares or say their payment machines are broken and can only accept cash“.
As part of the new mandates, SF taxi companies will also be required to install back-seat credit card terminals. Currently, about half of the taxis are equipped with this rear seat equipment.
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