Paying by Credit / Debit Card in Taxis Consultation Analysis · 2015. 10. 27. · Background to the consultation 1.1 Since 2014 passengers have been able to pay by contactless credit

Paying by credit or debit card in taxis

Consultation Report October 2015

12

Paying by credit or debit card in taxis

Consultation Report

Prepared for Transport for London by Steer Davies Gleave

August 2015

Contents

Executive Summary ............................................................................................................. i

Introduction .................................................................................................................... i

Key findings ................................................................................................................... i

Further comments ......................................................................................................... ii

1 Introduction ................................................................................................................ 1

Background to the consultation .................................................................................... 1

Detail of the consultation .............................................................................................. 2

2 Methodology .............................................................................................................. 5

The Consultation .......................................................................................................... 5

Analysis of consultation responses .............................................................................. 5

3 Analysis of public responses .................................................................................... 9

Respondent profile ....................................................................................................... 9

Q1: Should passengers be able to pay by debit or credit card in all taxis in London? ..10

Q2: If passengers should be able to pay by debit or credit card in all taxis in London

when should this requirement be introduced? .............................................................11

Q3: Should all taxis in London accept contactless card payments? ............................12

Q4: Should other methods, in addition to Chip and PIN and contactless, of accepting

card payments be available in taxis?...........................................................................13

Q5: Should the current maximum surcharge of £1 or 10% when paying by card be

changed? ....................................................................................................................14

Q6: If passengers should be able to pay by debit or credit card in all taxis in London,

where possible, should additional costs that drivers incur be taken into consideration

when reviewing taxi fares? ..........................................................................................16

Q7: Should the card payment devices in taxis be fixed in one position? ......................17

Q8: If yes [where] should this be? ...............................................................................18

Q9: Should the card payment device be linked directly to the taximeter in each taxi? .19

Q10: If it was decided that passengers should be able to pay by credit or debit card in

all taxis in London do you feel that the current signage requirements are still

appropriate? ................................................................................................................20

Q11: Should all taxis be required to display signage showing that card payments are

accepted? ...................................................................................................................21

August 2015

Q12: If it was decided that passengers should be able to pay by credit or debit card in

all taxis in London should other cards, in addition to MasterCard and Visa, be

accepted? ...................................................................................................................22

Q13: Would you consider using a taxi (black cab) instead of using a bus, the Tube or a

minicab if all taxis accepted credit or debit cards? .......................................................24

Other Comments.........................................................................................................25

4 Analysis of stakeholder responses .........................................................................33

Barclaycard .................................................................................................................33

Cab Driver Newspaper ................................................................................................33

Cab:App ......................................................................................................................33

CabCard Services (UK) Ltd .........................................................................................33

Cabvision ....................................................................................................................34

City of London Access Advisory Group .......................................................................34

City of Westminster Council Trading Standards Service .............................................34

CityFleet Networks Limited .........................................................................................34

Dial a Cab ...................................................................................................................34

Digitax UK ...................................................................................................................35

Heathrow Airport Taxi Drivers United (HATDU) ..........................................................35

iView ...........................................................................................................................35

Justine Greening MP, Putney, Roehampton & Southfields ..........................................35

London Assembly Transport Committee .....................................................................35

London Borough of Redbridge ....................................................................................36

London Borough of Bromley .......................................................................................36

London Borough of Havering ......................................................................................36

London Cab Drivers Club ............................................................................................36

London Motor Cab Proprietors Association (LMCPA) .................................................36

The London Taxi Company (LTC) ...............................................................................36

London Travelwatch ....................................................................................................37

Miura Systems Limited ................................................................................................37

Mountview House Group Limited ................................................................................37

Radio Taxis .................................................................................................................37

SO41 Group Limited ...................................................................................................38

Suzy Lamplugh Trust ..................................................................................................38

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Taxiworld Limited ........................................................................................................38

The UK Cards Association ..........................................................................................38

Unite ...........................................................................................................................39

United Cabbies Group ................................................................................................39

Verifone Limited ..........................................................................................................39

Figures

Figure 3.1: Respondent type ........................................................................................ 9

Figure 3.2: Q1: Should passengers be able to pay by debit or credit card in all taxis in

London? ......................................................................................................................10

Figure 3.3: Q2: If passengers should be able to pay by debit or credit card in all taxis in

London when should this requirement be introduced? ................................................11

Figure 3.4: Q3: Should all taxis in London accept contactless card payments? 12

Figure 3.5: Q4: Should other methods, in addition to Chip and PIN and contactless, of

accepting card payments be available in taxis? ..........................................................13

Figure 3.6: Q5: Should the current maximum surcharge of £1 or 10% when paying by

card be changed? .......................................................................................................14

Figure 3.7: Q6: If passengers should be able to pay by debit or credit card in all taxis in

London, where possible, should additional costs that drivers incur be taken into

consideration when reviewing taxi fares? ....................................................................16

Figure 3.8: Q7: Should the card payment devices in taxis be fixed in one position? ....17

Figure 3.9: Q8: If yes [where] should this be? .............................................................18

Figure 3.10: Q9: Should the card payment device be linked directly to the taximeter in

each taxi? ...................................................................................................................19

Figure 3.11: Q10: If it was decided that passengers should be able to pay by credit or

debit card in all taxis in London do you feel that the current signage requirements are

still appropriate? .........................................................................................................20

Figure 3.12: Q11: Should all taxis be required to display signage showing that card

payments are accepted? .............................................................................................21

Figure 3.13: Q12: If it was decided that passengers should be able to pay by credit or

debit card in all taxis in London should other cards, in addition to MasterCard and Visa,

be accepted? ..............................................................................................................22

Figure 3.14: Q13: Would you consider using a taxi (black cab) instead of using a bus,

the Tube or a minicab if all taxis accepted credit or debit cards? .................................24

Tables

Table 3.1: Summary of other comments from All London taxi drivers ..........................25

Table 3.2: Summary of other comments from Suburban taxi drivers ...........................27

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Table 3.3: Summary of other comments from taxi users .............................................28

Table 3.4: Summary of other comments from potential taxi users ...............................29

Table 3.5: Summary of other comments from non-taxi users ......................................30

Table 3.6: Summary of other comments received via email ........................................31

Appendices

A List of Stakeholders Consulted

B Q2a: If passengers should be able to pay by debit or credit card in all taxis in

London when should this requirement be introduced? - Other (please specify)

C Q4a: Should other methods, in addition to Chip and PIN and contactless, of

accepting card payments be available in taxis? - Yes (please specify)

D Q5a: Should the current maximum surcharge of £1 or 10% when paying by card

be changed? - Other (please specify)

E Q12a: If it was decided that passengers should be able to pay by credit or debit

card in all taxis in London should other cards, in addition to MasterCard and

Visa, be accepted? - Yes (please specify)

F Further comments – All London drivers

G Further comments – Suburban taxi drivers

H Further comments – Taxi users

I Further comments – Potential taxi users

J Further comments – Non-taxi users

K Further comments – Emailed responses

Responses to issues raisedL

Paying by Credit / Debit Card in Taxis Consultation Analysis | Report

August 2015 | i

Executive Summary

Introduction

Transport for London (TfL) sought views on whether passengers should be able to pay by debit or credit card in all licensed taxis (black cabs) in London. The consultation was about credit and debit card payments in taxis (black cabs) only and no changes to payments for minicabs or other private hire services were under consideration. The consultation was open from 15 June until 24 July

2015.

The consultation came in the context of research which has shown that the majority of taxi passengers (83%) would like to be able to pay by card in all

licensed taxis. The consultation covered the following topics:

Proposed timescales for card payment implementation;

Which payment types should be introduced (including contactless

payments);

The position of the payment device and if it should be linked to thetaximeter;

Surcharging on transactions; and

Appropriate signage.

The consultation consisted mostly of closed questions within the topics listed above, with a final open question asking for any other comments. Respondents were asked to identify themselves as a taxi driver (All London or Suburban), a taxi user, a potential taxi user, a non-taxi user or a representative of an

organisation. Relevant stakeholders were also consulted.

Key findings

1,097 respondents responded to the survey. 49% of respondents (538) identified themselves as taxi drivers – 45% of all respondents were All London drivers (497), 4% were Suburban drivers (41). 27% of respondents (300) were

taxi users.

86% of respondents (939) supported the introduction of card payments in all taxis in London, with 68% of respondents (743) supporting contactless payments. 68% of respondents (745) suggested card payment should be introduced as soon as possible, with a further 13% (148) suggesting it should

be implemented from April 2016.

37% of respondents (403) suggested that additional payment types (such as Oyster, Apple Pay or Paypal) should be offered, while 63% of respondents (696) suggested that cards in addition to Mastercard and Visa should be offered

– American Express and Diners Club were the most popular suggestions.

On the matter of surcharging, 37% of respondents (404) stated surcharges should be removed completely, with a further 26% (290) stating it should be reduced. By contrast, 24% (261) stated that the current surcharge level of 10% or £1 (whichever is higher) should remain. 65% of respondents (713) stated that charges should be considered in the next fare review.


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Respondents’ views were mixed on the issue of fixing the card payment device. 44% of respondents (483) stated that it should not be fixed in one position in the vehicles, compared to 40% of respondents (440) who stated that it should be fixed. 47% of respondents (511) stated that the card payment device should be linked to the taximeter, with 39% of respondents (430) stating it should not be.

70% of respondents (771) stated that signage must clearly indicate that taxis accept card payments, while 69% of respondents (761) stated they would consider using taxis ahead of alternatives, such as buses, Tube or minicab, if cards were accepted.

Further comments

Among taxi drivers, the most common comments indicated that surcharging levels are too high, that drivers should retain choice over the card payment

method they offer and that the payment device should not be fixed in the vehicle. For taxi users (and potential taxi users), the most common comments stated that accepting card payments would encourage more people to use taxis

and that many people do not like carrying large amounts of cash.


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1 Introduction Background to the consultation

1.1 Since 2014 passengers have been able to pay by contactless credit and debit card across the bus and Tube networks and an increasing number of people are paying for other goods and services by card. At present there is no

obligation on taxi drivers to accept card payments and only around half of taxi drivers in London do so. However, research has shown that the majority of taxi passengers (83%)1 would like to be able to pay by card in all licensed taxis.

1.2 The development of smartphone apps that allow passengers to book a taxi has made it easier for them to pay by card. However, not all taxi passengers have a smartphone and some still experience difficulties when they hail a taxi on the street or at a taxi rank and want to pay by card, as they cannot be certain that

the driver will accept card payments.

1.3 In the 2014 Taxi and Minicab Customer Satisfaction Survey, TfL asked taxi passengers if they felt that they should be able to pay by debit or credit card for all taxi journeys and the overwhelming majority (83%) felt that they should. Reasons given by passengers for why they feel they should be able to pay for

taxi journeys by card included:

It’s an easier way to pay (29%);

Convenience (18%);

They don’t always have enough cash on them (17%);

Saves having to carry cash (14%);

There is no need to find a cash machine (8%); and

Safety (7%).

1.4 The same survey showed that 42% of taxi drivers did not accept card payments, although 48% of these drivers felt that passengers should be able to pay by card2. Reasons given by drivers who did not think that passengers should be able to pay by card in all licensed taxis included:

It should be up to the driver if they accept card payments (19%);

Fee for processing credit/debit cards is too high (16%);

Safety/security concerns (13%);

1 Taxi and Minicab Customer Satisfaction Survey, TNS, 2014/15

2 Taxi and Private Hire Licensee Customer Satisfaction Survey, TNS, 2014/15


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Passengers are happy to pay cash (9%); and

It is difficult or costly to install card payment equipment (3%).

Detail of the consultation

1.5 In summer 2015, TfL sought views on whether passengers should be able to pay by debit or credit card in all licensed taxis (black cabs) in London. The consultation was about credit and debit card payments in taxis (black cabs) only and no changes to payments for minicabs or other private hire services were under consideration.

1.6 It is important to note that the consultation did not propose that taxis stop accepting cash payments or become ‘cashless’. If it was decided that passengers should be able to pay by card in all licensed taxis then this would be in addition to being able to pay by cash and not a replacement for cash payments. In addition, this consultation did not encompass the use of Oyster

cards.

1.7 There were several key issues that this consultation considered, which are detailed below.

Timescales for implementation

1.8 If it was decided that passengers should be able to pay by card in all taxis then TfL would like to introduce the requirement at the earliest opportunity. One option would be for passengers to be able to pay by card in all newly licensed taxis from October 2015 and then in all licensed taxis from April 2016.

1.9 Alternative options would be for all taxis to accept card payments from April 2016 with no earlier requirement, or for a phased introduction of requirements which could potentially benefit drivers who have devices that do not accept contactless payments.

Contactless payments

1.10 The number of contactless card payments in London has grown significantly over the past two years. The current contactless card payment limit in the UK is £20 but in September 2015 the limit increased to £30. Although the average taxi fare in London is below £30 some fares will be above this (e.g. for journeys between Heathrow Airport and central London) and so it is not appropriate that only contactless payments should be accepted in taxis; passengers should also have the option to pay using Chip and PIN.

1.11 Paying by contactless card may often be quicker for the driver and passenger than when the passenger has to enter their PIN. However, some drivers who already accept card payments may have devices that do not accept contactless card payments. Although all card payment devices will eventually accept

contactless payments this could be after the introduction of any potential

requirement allowing passengers to pay by card in all licensed taxis.

Other payment services

1.12 In addition to Chip and PIN and contactless devices, there are a number of alternative ways that card payments can be made and accepted (e.g. by mobile


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phone, text message, PayPal), with new methods being continually developed and launched. Some new and future methods of making and accepting card payments may have a number of benefits for passengers and drivers including

being cheaper, quicker or more convenient.

Surcharges

1.13 At present there is a surcharge set by TfL of £1.00 or 10% of the metered fare, whichever is greater, when a passenger pays for a taxi journey by credit or debit card. Drivers must also not charge passengers more than it costs them to accept card payments. This is a requirement in the Consumer Rights (Payment

Surcharges) Regulations 2012.

1.14 If the surcharge was removed then some of the costs drivers incur when accepting card payments could potentially be taken into consideration when TfL review taxi fares. This would be consistent with the approach to other items

that all taxi drivers must have (e.g. taximeter) or the costs that all drivers face (e.g. fuel, insurance, parts, etc.).

1.15 However, removing the surcharge and including certain costs in the taxi fares review may disadvantage some companies who expect to be able to recover

the costs of investing in card payment equipment from the surcharge.

1.16 It is possible that future legislation would remove most card payment surcharges and if this was the case then it is anticipated that all taxi drivers and

taxi companies would have to comply with this.

Position of card payment equipment

1.17 At present the fitting of card payment devices in taxis varies, with some devices fixed in the passenger compartment, some in the driver compartment and others not fixed at all.

1.18 There are advantages and disadvantages to all of the different arrangements although the greatest benefit for passengers may be from all card payment devices to be fixed in one position in the passenger compartment. However, this would disadvantage taxi drivers and companies who already have card

payment equipment fitted in the driver compartment.

Linking to taximeters

1.19 Some card payment devices currently in use are linked to the taximeter so at the end of the journey the card payment device will automatically show the amount payable, it will not need to be entered by the driver. However, there is currently no requirement for card payment devices to be linked to the taximeter

and others devices work by the driver entering the amount payable.

Signage

1.20 TfL’s advertising guidelines for London taxis state that any signage displaying card payment information must be a minimum 17pt (Arial font) in contrasting colour to make it easily readable and that signage should be displayed in the

following positions:

On the driver’s door, below the window line on the external door panel;


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On the partition screen behind the driver; and

On the front windscreen behind the driver’s rear view mirror.

1.21 The signage normally shows which cards the driver accepts and this helps make it clear to passengers which cards they can use. If it was decided that passengers should be able to pay by credit or debit card in all taxis in London then having signage on all taxis would help make passengers aware that all taxis accept card payments.

Cards accepted

1.22 At present TfL does not specify which cards must be accepted. If TfL were to introduce a requirement to enable passengers to pay by card in all taxis then ideally all or at least the majority of cards would be accepted to ensure that all passengers could benefit from this service. These potential additional cards

include American Express, Discover Cards, JCB, or Union Pay.


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2 Methodology The Consultation

2.1 The consultation was open from 15 June 2015 until 24 July 2015. The consultation aimed to give stakeholders and the public enough information about the proposals to allow them to give informed responses. It sought to gauge the level of support for or opposition to the proposals, and gain an understanding of any concerns and objections. The consultation also wanted to identify any issues not already thought of.

A variety of methods were used to publicise the consultation including a press

release and an email to relevant stakeholders including:

Taxi trade associations;

Card payment equipment providers;

Licensed taxi drivers (for whom TfL had a contact email address);

All London Boroughs and authorities within the GLA boundary;

Members of Parliament;

GLA members; and

Passenger groups such as London TravelWatch.

2.2 A complete list of stakeholders consulted can be found in Appendix A of this report.

2.3 The consultation was advertised on the TfL Taxi & Private Hire Twitter account with tweets being sent out at various times during the consultation. A follow up email was sent out on the 14 July 2015 to taxi trade associations reminding people to take part in the consultation. The consultation was also advertised in

some trade publications.

Analysis of consultation responses

2.4 TfL commissioned Steer Davies Gleave to analyse the open and closed consultation responses and to prepare short summaries of the key points made

by stakeholders.

Analysis of closed question responses

2.5 The closed question responses have been analysed and presented according

to the respondent type as follows:

An All London taxi driver (green badge);

A Suburban taxi driver (yellow badge);


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A taxi user;

A non-taxi user who may start using taxis if card payments were accepted in all taxis (for brevity, this type has been called ‘potential taxi users’ throughout);

A non-taxi user;

As a representative of an organisation; and

Not classified.

Analysis of open question responses

2.6 Code frames were developed to structure the analysis of responses to the open questions. There was only one genuinely open question, which asked respondents: “If you have any further comments, please let us know” at the end of the consultation. However, four of the closed questions had an open

response option. They were as follows:

Q2: If passengers should be able to pay by debit or credit card in all taxis in London when should this requirement be introduced? Other (please specify);

Q4: Should other methods, in addition to Chip and PIN and contactless, of accepting card payments be available in taxis? Yes (please specify);

Q5: Should the current maximum surcharge of £1 or 10% when paying by card be changed? Other (please specify); and

Q12: If it was decided that passengers should be able to pay by credit or debit card in all taxis in London should other cards, in addition to MasterCard and Visa, be accepted? Yes (please specify).

2.7 A separate code frame was developed for each of the open questions. The code frames consist of a series of themes and within these more detailed comments. The list below shows the themes discussed in response to the “any further comments” open question:

Compulsory card payment;

Card payment method;

Charges;

Disabled users;

Other payment type;

Publicity; and

Timescale.

2.8 Following agreement of the code frames with TfL, all open responses received were coded. Individual comments were coded to one or many of the codes

within the code frame as relevant.

2.9 To ensure consistency between individuals coding responses the first 50

responses coded by each analyst were checked by the Project Director. For full copies of the code frames, see Appendices B – K.

Analysis of stakeholder responses

2.10 Responses from stakeholders were received via TfL’s online consultation tool, by email and by post. Stakeholder responses were flagged by TfL and were


August 2015 | 7

analysed accordingly by Steer Davies Gleave. Individual written summaries of

each stakeholder response have been prepared.


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3 Analysis of public responses Respondent profile

3.1 There were 1,097 responses to the consultation in total. Respondents were asked to classify themselves from a list of respondent types, which included taxi driver and taxi user. The following chart shows the breakdown of respondents. It shows that 49% of respondents (538) are taxi drivers, with 497 of these (45% of all respondents) being All London drivers. 27% of respondents were taxi users.

Figure 3.1: Respondent type

All London taxi driver, 45%

Suburban taxi driver, 4%

A taxi user, 27%

A potential taxi user, 8%

A non-taxi user, 3%

As a representative

of an organisation, 3%

No respondent type, 9%

Base: 1,097 respondents

3.2 18 responses were emailed directly and therefore did not answer the closed questions, nor did they indicate their respondent type. These responses are


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summarised in the Other Comments section of this report. 69 responses were received from respondents who identified themselves as responding on behalf of Verifone. However, as Verifone’s stakeholder response was already identified these responses have been moved to the ‘No respondent type’

category.

3.3 For the following analysis of each of the questions asked in the consultation, responses have been split into these seven respondent types.

Q1: Should passengers be able to pay by debit or credit card in all taxis in London?

3.4 Respondents were first asked whether they agreed with the proposition that passengers should be able to pay by debit or credit card in all taxis in London. In general respondents were positive about the suggested change. Among taxi users, 90% of respondents (269) agreed with the proposal (Figure 3.2). 98% of

potential taxi users (91), 94% of non-taxi users (29) and 89% of organisations (31) agreed with the introduction of card payments in taxis. A high proportion of All London taxi drivers agreed – 83% respondents (412). Support was lowest

among Suburban taxi drivers, with 51% respondents (21) responding ‘Yes’.

Figure 3.2: Q1: Should passengers be able to pay by debit or credit card in all taxis in London?

86% 83%

51%

90%98% 94%

89% 86%

12% 15%

44%

10% 6%6%

6%

6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% o

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Respondent type

Not Answered

Don’t know

No opinion

No

Yes



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Q2: If passengers should be able to pay by debit or credit card in all taxis in London when should this requirement be introduced?

3.5 Respondents were then asked when card payments should be introduced. Figure 3.3 shows that the most common answer across respondents as a whole was ‘As soon as possible’ – 68% of all respondents (745). The proportion of drivers who want implementation of card payments as soon as possible is

lower: 59% of All London drivers (291) and 32% of Suburban drivers (13).

Figure 3.3: Q2: If passengers should be able to pay by debit or credit card in all taxis in London

when should this requirement be introduced?

68%59%

32%

78%84% 81%

57%

84%

13%

17%

20%

11%

12%10%

23%

3%6%7%

20%

14%6%

8%

15%

4%

5% 6%12%

6% 8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% o

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Respondent type

Not Answered

Don’t know

No opinion

Other (please specify)

From April 2016

As soon as possible


3.6 Respondents who chose the ‘Other’ option for this question were invited to give

an open response. Many respondents used this opportunity to re-iterate a request for card payments to be brought in as soon as possible (13 respondents) or in 2016 (nine), despite these being closed question options.

The most common responses after these were:

Implement when technology has developed (13 respondents);

Suggested phased implementation (eight respondents);


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Implementation in:

2020 (seven respondents);

2018 (four respondents); and

2017 (three respondents).

3.7 A full list of open responses to this option are shown in Appendix B.

Q3: Should all taxis in London accept contactless card payments?

3.8 Respondents were next asked if they supported London taxis offering contactless card payments. Support for this suggestion was more mixed than for card payments in general. Figure 3.4 shows that support was highest among potential taxi users (88%, 82 respondents) and those responding on behalf of an organisation (83%, 29 respondents). In comparison 49% of Suburban drivers (20) do not support this proposal compared to 39% of Suburban drivers

(16) who support it (the remainder did not express an opinion).

Figure 3.4: Q3: Should all taxis in London accept contactless card payments?

68%57%

39%

77%88%

74%83% 80%

25%35%

49%

17%16% 9%

8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

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% o

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Respondent type

Not Answered

Don’t know

No opinion

No

Yes



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Q4: Should other methods, in addition to Chip and PIN and contactless, of accepting card payments be available in taxis?

3.9 Further to the offer of contactless and Chip and PIN payments, respondents were asked if additional methods of payment should be possible. Responses to this question were mixed. Figure 3.5 shows that 32% of all respondents (349) either did not express an opinion or did not answer the question, with 37% of all respondents (403) supporting additional methods of payment and 31% of all

respondents (345) not supporting additional methods.

Figure 3.5: Q4: Should other methods, in addition to Chip and PIN and contactless, of accepting

card payments be available in taxis?

37%42%

27%36% 34%

52%43%

13%

31%28%

37%28%

18%

16% 34%

70%

14% 11%15%

19%

26%

16%

17% 5%15% 17% 20%

15%20%

16%6%

5%

7%

0%

10%

20%

30%

40%

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% o

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Respondent type

Not Answered

Don’t know

No opinion

No

Yes (please specify)


3.10 Those who responded ‘Yes’ to this question were invited to provide an open

response detailing what kind of technology they would suggest. The following

list shows the top five most popular suggestions:

Oyster (49 respondents);

Apple Pay (45 respondents);

An app (41 respondents);

Paypal (36 respondents); and


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Cash (36 respondents).

3.11 Suggestions for mobile banking, swipe and signature card payments were also popular. In addition, thirteen respondents made the point that many overseas visitors do not have Chip and PIN, so catering for them is important.

3.12 A full list of these responses can be seen in Appendix C.

Q5: Should the current maximum surcharge of £1 or 10% when paying by card be changed?

3.13 Respondents were next asked their views on surcharges placed on card payments. More specifically they were asked if the current maximum surcharge of £1 or 10% of the metered fare (whichever is higher) should be changed. 28% of All London drivers (139) commented that the charge should be removed and 38% (189) suggested it be reduced (see Figure 3.6). Removing the charge completely was the most popular option among taxi users (52%, 157

respondents), potential taxi users (60%, 56 respondents) and non-taxi users

(45%, 14 respondents).

Figure 3.6: Q5: Should the current maximum surcharge of £1 or 10% when paying by card be

changed?

37%28% 29%

52%60%

45%

26%17%

26%38%

29%

17%

16%

16%

31%

7%

24% 18%

20%

22%14%

23% 31%

64%

6% 9%

5%

5%

6%10% 2%

5% 8%

0%

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Respondent type

Not Answered

Don’t know

No opinion

Other (please specify)

No

Yes – the surcharge should be reduced

Yes – it should be removed completely



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3.14 Respondents who answered ‘Other’ could then specify their alternative

suggestion. The top five most popular suggestions were as follows:

customers should bear the charge, rather than drivers (20 respondents);

respondents suggesting there should be no charge (17 respondents);

the charge should only cover the extra costs to the driver, and no more (15 respondents);

a 10% fee is too high (ten respondents); and

a revised cap of 5% (nine respondents).

3.15 A full list of these responses can be seen in full in Appendix D.


August 2015 | 16

Q6: If passengers should be able to pay by debit or credit card in all taxis in London, where possible, should additional costs that drivers incur be taken into consideration when reviewing taxi fares?

3.16 The suggestion to factor additional costs to the driver of card payments into future fare reviews was a common one, albeit supported more by the taxi trade than users (Figure 3.7). 71% of All London drivers (352) and 71% of Suburban drivers (29) supported this suggestion. 56% of taxi users (167), 55% of potential taxi users (51) and 48% of non-taxi users (15) supported incorporating additional costs to drivers into the future reviews of taxi fares.

Figure 3.7: Q6: If passengers should be able to pay by debit or credit card in all taxis in London,

where possible, should additional costs that drivers incur be taken into consideration when

reviewing taxi fares?

65%71% 71%

56% 55%48%

60%

78%

25%20% 17%

34% 38%

32%

31%

10%

5%

6%

5% 5% 5%10% 4%

5% 7%

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% o

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Respondent type

Not Answered

Don’t know

No opinion

No

Yes



August 2015 | 17

Q7: Should the card payment devices in taxis be fixed in one position?

3.17 64% of All London taxi drivers (320) and 71% of Suburban drivers (29) responding to this consultation thought that card payment devices should not be fixed in one position (Figure 3.8). By contrast, taxi users (49%, 148 respondents) and non-taxi users (61%, 19 respondents) were in favour of a fixed card reader. 43% of organisation responses (15) supported a fixed card reader compared to 46% who did not support a fixed card reader (16

respondents).

Figure 3.8: Q7: Should the card payment devices in taxis be fixed in one position?

40%

24%17%

49%

62% 61%

43%

73%

44%

64%71%

26%

15%26%

46%

19%

10%6% 5%

18%18%

10%7%5% 6%

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Respondent type

Not Answered

Don’t know

No opinion

No

Yes



August 2015 | 18

Q8: If yes [where] should this be?

3.18 Respondents were asked a follow up question to Question 7. This assumed that the card reader was fixed, and asked where in the vehicle would be best for it to be fixed.

3.19 As shown in Question 7, many drivers do not think the card reader should be fixed. This is likely reason why 62% of All London drivers (306) and 66% of Suburban drivers (27) did not express an opinion in response to this question (see Figure 3.9). The passenger’s compartment was the most popular suggestion among the remaining respondent groups: 44% of taxi users (132), 59% of potential taxi users (55), 42% of non-taxi users (13) and 43% of organisation responses (15) supported fixing card reader in the passenger

compartment.

Figure 3.9: Q8: If yes [where] should this be?

33%

15%5%

44%

59%

42% 43%

69%7%

8%

10%

5% 13%

4%

11%

14%

20%

9%

6%16%

5%

19%

21%22%

21%

18% 10%5%

5%

7%26%

36% 39%

14%8%

19%

43%

16%

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% o

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Respondent type

Not Answered

Don’t know

No opinion

Either compartment

In the driver’s compartment

In the passenger’s compartment



August 2015 | 19

Q9: Should the card payment device be linked directly to the taximeter in each taxi?

3.20 Next, it was proposed to respondents that the card payment device could be linked directly to the meter in the taxi. This suggestion was least popular among taxi drivers, with 63% of All London drivers (312) and 54% of Suburban taxi drivers (22) stating it shouldn’t be linked. Figure 3.10 shows that this suggestion is more popular among 59% of taxi users (178), 75% of potential taxi users

(70), 81% of non-taxi users (25) and 60% of organisation responses (21).

Figure 3.10: Q9: Should the card payment device be linked directly to the taximeter in each taxi?

47%

26%34%

59%

75%81%

60%

76%

39%

63%54%

21%

34%

15%

7% 6% 5%11% 10%

10%

5% 5% 6% 11% 6% 6%

0%

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Respondent type

Not Answered

Don’t know

No opinion

No

Yes



August 2015 | 20

Q10: If it was decided that passengers should be able to pay by credit or debit card in all taxis in London do you feel that the current signage requirements are still appropriate?

3.21 Respondents were asked about the suitability of current signage requirements. 56% of All London drivers (276) and 46% of Suburban drivers (19) agreed that current signage requirements are appropriate. 41% of taxi users (122) and 27% of potential taxi users (25) agree that current signage requirements are appropriate. 39% of non-taxi users (12) and 49% of organisation responses

(17) agree that signage requirements are still appropriate (Figure 3.11).

Figure 3.11: Q10: If it was decided that passengers should be able to pay by credit or debit card in

all taxis in London do you feel that the current signage requirements are still appropriate?

49%56%

46%41%

27%

39%49%

69%

26%

26%

24%29%

37%

29%

31%

9%

9%

10%

10% 10%13%

10%

13%7%

15% 20% 24% 19% 11%11%

5% 6% 9%

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Respondent type

Not Answered

Don’t know

No opinion

No

Yes



August 2015 | 21

Q11: Should all taxis be required to display signage showing that card payments are accepted?

3.22 A further question about signage was posed. 70% of all respondents (771) agreed that all taxis should be obliged to display signage showing that card payments are accepted. 80% of taxi users (240) and 89% of organisation responses (31) agreed with this requirement. The proportion of drivers agreeing with this suggestion was lower, but there was still more agreement with it than disagreement; 60% of All London drivers (297) and 41% of Suburban drivers

(17) agreed with this proposal (Figure 3.12).

Figure 3.12: Q11: Should all taxis be required to display signage showing that card payments are

accepted?

70%60%

41%

80%85% 84%

89%81%

23%34%

39%

13%9%

16%11%

10%12%

5% 7%

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Not Answered

Don’t know

No opinion

No

Yes



August 2015 | 22

Q12: If it was decided that passengers should be able to pay by credit or debit card in all taxis in London should other cards, in addition to MasterCard and Visa, be accepted?

3.23 Respondents were asked if they thought additional cards should be accepted. 63% of all respondents (696) agreed that a wider range of cards should be accepted. All London drivers (69%, 342 respondents) and organisation responses (69%, 24 respondents) were particularly supportive of other cards being accepted. 56% of taxi users (168), 51% of potential taxi users (47), 49% of Suburban drivers (20) and 45% of non-taxi users (14) supported this proposal (Figure 3.13).

Figure 3.13: Q12: If it was decided that passengers should be able to pay by credit or debit card in

all taxis in London should other cards, in addition to MasterCard and Visa, be accepted?

63%69%

49%56%

51%45%

69%

81%

12%12%

15%

15%

11%13%

11%

6%14%10%

20%

20%

26% 29%

6%

4%8% 8%

12%

9% 13% 13% 14%5% 7%

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Not Answered

Don’t know

No Opinion

No

Yes (please specify)



August 2015 | 23

3.24 Those who answered ‘Yes’ were asked to detail which other cards should be accepted. The most common suggestion by far was American Express (414 respondents), followed by 123 respondents suggesting that ‘All cards’ should

be accepted.

3.25 The following cards were the next most suggested:

Diners Club (42 respondents);

Oyster (29 respondents);

JCB (21 respondents);

China Union Pay (17 respondents);

Maestro (11 respondents); and

Discover (11 respondents).

3.26 A full list of responses to this open option are available in Appendix E.


August 2015 | 24

Q13: Would you consider using a taxi (black cab) instead of using a bus, the Tube or a minicab if all taxis accepted credit or debit cards?

3.27 The final closed question asked respondents if they would consider using a black cab instead of public transport or a minicab if card payments were accepted. This question showed a positive response from most respondent groups – 69% of all respondents (761) would consider taking a taxi if all taxis accepted credit or debit cards. Figure 3.14 shows that 84% of potential taxi users (78), 74% of taxi users (221) and 66% of organisation responses (23) would consider using a taxi if cards were accepted. Non-taxi users were not as positive, however, with only 35% (11 respondents) indicating they would

consider a taxi if cards were accepted.

Figure 3.14: Q13: Would you consider using a taxi (black cab) instead of using a bus, the Tube or a

minicab if all taxis accepted credit or debit cards?

69% 67%56%

74%84%

35%

66%71%

15%14% 34%

17%4%

42%

26%10%

13% 17%5% 9% 12%

23%

9%

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Yes



August 2015 | 25

Other Comments

3.28 The final question asked if respondents had “any further comments” on the proposals. As with the closed questions, analysis of this question has been divided by the respondent type to highlight the differences between different respondent points of view. Each section is structured by the themes under

which comments were classified. See the full codeframes in Appendices F – K.

All London taxi drivers

3.29 The following table shows how many comments All London taxi drivers left under each theme.

Table 3.1: Summary of other comments from All London taxi drivers

Theme Count of comments % of comments

Card payment method 254 38%

Charges 186 28%

Compulsory card payment 145 22%

Other payment type 38 6%

Timescale 6 1%

Publicity 6 1%

Other comment 23 3%

Comment on consultation 4 1%

Total 662 100%

Card payment method

3.30 The most common comment in this theme was that drivers should have the choice over which method of card payment they offer (47 respondents). A further 39 respondents did not support a fixed card payment device, many suggesting that a mobile unit is preferable for drivers who rent a taxi and therefore change vehicle regularly. 25 respondents explicitly supported the use

of iZettle or Payleven payment systems.

3.31 Concern over the impact of a technical fault, non-payment or fraud was an

issue for 22 respondents, with some respondents suggesting that TfL should cover the costs to drivers when a payment does not work. 20 respondents raised the point that card payments often take a long time to process, which can present a problem when the taxi is stopped in the road. 19 respondents commented that they did not support the linking of the card payment device and

the taxi meter.


August 2015 | 26

3.32 Fifteen respondents commented that if the card reader is not working, then the taxi shouldn’t be allowed to be on the road, as some drivers pretend their machine is broken in order to avoid having to accept payments. A further 14 respondents commented that intermittent signal means that card readers do not always work; they cited the underground taxi ranks at Euston station and Westfield shopping centre in Shepherd’s Bush as sites where this is a problem. 11 respondents commented that contactless payments should be accepted, while ten suggested pre-authorising cards at the beginning of journeys or having a system to pre-register cards to make sure the payment will be valid.

Charges

3.33 The most common comment made by all London drivers was that the current surcharge level of 10% is too high and that it should be reduced (95 respondents). A small number of respondents (eight) explicitly suggested setting the maximum charge at 5%, while one respondent suggested a 2% maximum charge. 33 respondents suggested that drivers should not be charged anything to accept card payments. 20 respondents were against charges being incorporated into fares as this would penalise cash users. While 17 respondents commented that customers should not be charged as part of

the card transaction.

Compulsory card payments

3.34 The most popular comment under this theme was support for the proposal that all taxis should accept card payments (90 respondents). By contrast, 46 respondents did not support the proposal and were of the view that accepting

cards should be drivers’ choice.

Other payment type

3.35 Under this theme, 11 respondents supported the use of Cab App due to its low charges. A further 11 respondents advocated accepting Oyster card for paying fares. Five respondents commented that the option to pay by cash must

remain.

Other comments

3.36 Nine respondents were concerned about the treatment of taxis by TfL. Six respondents commented that this proposal should be implemented as soon as possible. Six respondents requested for improved regulation of Uber, and four for tighter regulation on private hire in general. Five respondents requested that, when introduced, TfL should publicise the ability to pay by cards in all

taxis.

3.37 A full list of codes for this question can be found in Appendix F.


August 2015 | 27

Suburban taxi drivers

3.38 The following table shows how many comments Suburban taxi drivers left

under each theme.

Table 3.2: Summary of other comments from Suburban taxi drivers


Charges 13 30%




Other comment 7 16%


Total 43 100%

Charges

3.39 Four Suburban taxi drivers made the comment that surcharges should be reduced – 10% being too high, with another four commenting that drivers should not be charged anything. Two respondents commented that incorporating surcharges into fares will penalise cash users.


3.40 Eight Suburban taxi drivers noted their lack of support for card payments being accepted in all taxis – they suggested the accepting of card payments should remain a choice of the driver. Three respondents did support card payments being offered in all taxis and did not explain further.

Card payment method

3.41 Three respondents suggested that the delay with some card payment devices is a problem, particularly when stopped in the road. Two drivers commented that from their own experience, despite offering card payments, they still found many customers preferring to use cash.

Other comments

3.42 Five respondents in this group were concerned about the treatment of taxis by TfL.

3.43 For a full table of codes for this respondent group, see Appendix G.


August 2015 | 28

Taxi users

3.44 The following table shows how many comments taxi users left under each

theme.

Table 3.3: Summary of other comments from taxi users




Charges 32 17%


Timescale 4 2%

Disabled users 2 1%

Publicity 1 1%

Other comment 18 9%


Total 192 100%


3.45 The most common comment among taxi users was support for the proposals to introduce card payments in all taxis (35 respondents). A further 18 respondents commented that accepting card payments would encourage more people to use taxis. 11 respondents supported the proposals because they do not like

carrying cash, or do not always have enough with them for their fare.

3.46 Nine respondents did not support compulsory card payments, suggesting that it should remain drivers’ choice whether they accept cards or not. Three taxi users commented that compulsory card payments are important for drivers working at Heathrow, while another three suggested it is preferable to pay with card when getting reimbursed on an expense account as the individual is not out of pocket.

Card payment method

3.47 Seven taxi users made the point that if the card payment device is not working, the taxi should not be on the road, as some drivers will pretend it is not working just to avoid taking card payments. Five respondents indicated preference for a fixed card reader, as they found them more trustworthy. Four respondents were of the view that not carrying cash is safer for both the driver and customer.


August 2015 | 29

Three respondents did not support linking the card payment device and the taxi meter. Another three suggested that the method of card payment should be up to the driver to choose. Two respondents support linking the card payment

device to the taxi meter.

Charges

3.48 Under this theme, most respondents were concerned about the potential adverse effect on tipping of charges being levied on card transactions (eight respondents). Five respondents commented that charges should be reduced, with 10% being too high. Four taxi users suggested that card payments should be zero charge for customers, with another four commenting that drivers shouldn’t be charged anything. A further four comments supported

incorporating charges into fares, while three respondents did not support this.

Other comments

3.49 Eleven respondents commented that rival services, such as Uber, offer a much better service than taxis. Four respondents noted their view that taxi fares are expensive. Another four suggested that Oyster cards should be allowed for payment in taxis, while a further four respondents indicated that the proposals should be implemented as soon as possible. Three respondents commented that the option to pay by cash must remain.

3.50 A complete table of responses to this question from taxi users is in Appendix H.

Potential taxi users

3.51 The following table shows how many comments potential taxi users left under

each theme.

Table 3.4: Summary of other comments from potential taxi users





Charges 4 5%

Publicity 2 3%

Timescale 2 3%

Other comment 10 13%


Total 75 100%


August 2015 | 30


3.52 The most popular comment from this respondent group was support for compulsory card payments in all taxis (13 respondents). Another 12 respondents supported card payments because they commented that they don’t like carrying cash or don’t always carry enough for the required fare. Ten respondents commented that card payments would encourage more people to use taxis.

Card payment method

3.53 Three respondents commented that taxis should accept contactless payment. A further three suggested that taxis should be off the road if their card machine if not working, as drivers could use this as an excuse not to accept cards. Two respondents supported fixing the card reader in the passenger compartment, while another two commented that not carrying cash is safer for driver and

customer alike.

Other comments

3.54 Four respondents suggested that taxi fares are expensive, with another three comments suggesting rival services, such as Uber, offer a better service. Three

respondents suggested Oyster cards be accepted for payment in taxis.

3.55 The full list of codes for this group can be found in Appendix I.

Non-taxi users

3.56 The following table shows how many comments non-taxi users left under each

theme.

Table 3.5: Summary of other comments from non-taxi users





Other comment 3 20%

Total 15 100%

3.57 Three respondents in this respondent group supported card payments being offered in all taxis. Two supported the proposals as they don’t like carrying cash, or don’t always have enough with them. Another two commented that

card payments would encourage more people to use taxis.

3.58 A full list of responses from non-taxi users can be seen in Appendix J.


August 2015 | 31

Emailed responses

3.59 The following table shows under which theme emailed responses fell.

Table 3.6: Summary of other comments received via email




Charges 4 9%


Other comment 3 7%

Total 43 100%

3.60 As explained in the Respondent profile section, 18 responses were emailed directly, rather than received through the online questionnaire. Among these responses, seven respondents noted their support for card payments in all taxis, while another seven did not support it –suggesting it should remain the choice of the driver. Five respondents commented about potential technical faults, non-payment or fraud, with some requesting TfL cover the costs of non-payment in these cases.

3.61 Three respondents commented that intermittent signal means that card payments do not always work, this is a problem in underground ranks at Euston station and Westfield shopping centre in Shepherd’s Bush. Another three respondents requested that the option to pay by cash must remain.

3.62 A full summary of these responses is in Appendix K.


August 2015 | 32


August 2015 | 33

4 Analysis of stakeholder responses

4.1 Stakeholders responded to the consultation in two ways: either they completed the online questionnaire, indicating that they were responding ‘on behalf of an

organisation’, or they emailed their response directly to TfL. This section provides a summary of every stakeholder response received.

Barclaycard

4.2 Barclaycard support the introduction of card payments in all taxis in London, including contactless payments. They support all card payment types, in addition to chip and PIN being offered in taxis, as well as a complete removal of the current 10% or £1 surcharge on card transactions. Barclaycard agree with

the proposition that card payment devices be linked to the taximeter.

Cab Driver Newspaper

4.3 The response from Cab Driver Newspaper supported the introduction of card payments in all taxis in London, although this support does not extend to contactless card payments. Their view is that offering chip and PIN is sufficient. They do not support any form of surcharge as their view is that charging extra will make the taxi trade less competitive. The Cab Driver Newspaper does not support fixed card payment devices, commenting that drivers should be free to

choose from technologies on offer.

Cab:App

4.4 Cab:App support the introduction of card payments in all taxis in London, including contactless payments. Their view is that card payment devices should not be fixed, and should not be linked to the taximeter. They support the use of mobile payment options, such as Pingit or Paym. Cab:App commented that if card payments will be widely adopted by the taxi trade it is important to allow drivers choice of what payment method they use. They support a reduced surcharge on card transactions with no processing costs falling on drivers. They

suggest that the maximum permitted charge must be transparent and clearly publicised.

CabCard Services (UK) Ltd

4.5 CabCard Services presently provide card payment facilities to London taxis. They support the introduction of card payments in all taxis in London, although not contactless card payments. They are concerned about implementation


August 2015 | 34

before April 2016 as hardware providers would struggle to meet the surge in demand. They also comment that any changes to processing fees will require time for the remote updates to terminal equipment to take effect. They suggest that chip and PIN is sufficient, and that taxis should accept American Express

cards in addition to Mastercard and Visa.

Cabvision

4.6 Cabvision offer card payment systems for taxis. They support the introduction of card payments in all taxis in London, including contactless payments. They propose a potential trial requiring all drivers working at Heathrow to accept card payments, before the Londonwide implementation. Cabvision do not support excessive surcharges, although suggest that a minimum charge of £1 with a 5% charge is reasonable. They advocate a revision of the fare structure for

taxis, with a higher starting fare.

City of London Access Advisory Group

4.7 The City of London Access Advisory Group support the introduction of card payments as soon as possible in all taxis in London, including contactless payments. Their view is that the current surcharge level should remain and that the taxi payment device should be fixed in the passenger compartment and linked to the taximeter.

City of Westminster Council Trading Standards Service

4.8 City of Westminster Council Trading Standards Service did not express an opinion on whether cards should be accepted in taxis. However, they did suggest that the current surcharge level must be reduced to conform to UK regulations, which prevent excessive charging for debit and credit card

payments.

CityFleet Networks Limited

4.9 CityFleet offer a booking and payment system for taxis, including card payments. They support the introduction of card payments in all taxis in London, including contactless payments. They commented that the current surcharge level should remain the same as lower charges would penalise the companies operating the card payment devices. Their view is that charges should not be incorporated into fares as this will harm the competitiveness of taxis. They support a mobile payment unit over which drivers retain control, as this will be tamper-proof and better value for money. CityFleet support a method of penalising drivers who do not have a working card payment device.

Dial a Cab

4.10 Dial a Cab, who offer a taxi booking and account service, support the

introduction of card payments in all taxis in London, including contactless payments. They support the current surcharge level and believe that chip and PIN is sufficient payment method to offer. While they do not support fixing the

card payment device in place, they are in favour of linking it to the taximeter.


August 2015 | 35

Digitax UK

4.11 Digitax UK supply taximeters and card payment devices for taxis. They support the introduction of card payments in all taxis in London, including contactless payments. In their view, taxi drivers should be able to choose their card payment device, with the only condition being that it is PCI compliant. They suggest that it is important that taxis accept payment by smartphone as they think this technology will overtake card payments in the near future. Digitax UK support surcharging, but at a lower level around 4 or 5%. They commented that charging is important to cover the costs associated with accepting cards in taxis, the equipment costs of which are greater than in shops. They suggested

the charge should not be assimilated into fares.

Heathrow Airport Taxi Drivers United (HATDU)

4.12 HATDU does not support the introduction of card payments in all taxis in

London; their view is that drivers must still have the right to refuse card payments as they are effectively lending the customer money. They support the current surcharge level as this only covers the costs plus a small profit margin in their view. Linking the card payment device and taximeter would not be practical for certain journeys from Heathrow in their view. They also support having a minimum fare level only above which card payments can be accepted – they suggest £10 for Greater London and £25 from Heathrow. Finally, they have concerns for drivers without bank accounts and about the lengthy delay to

receive payment with some card transactions.

iView

4.13 iView offer a taxi booking app. They support the introduction of card payments in all taxis in London. They propose a 6% fixed surcharge on all card transactions in taxis. In their view, there should be one, standardised card payment device available in all taxis (fixed in a cradle in the passenger compartment) but that drivers should have the option to have a secondary (TfL-approved) device in their cab as well. These devices should accept all major card types as well as contactless payment. It is also iView’s opinion that

identical signage outlining the cards accepted should be displayed on all taxis.

Justine Greening MP, Putney, Roehampton & Southfields

4.14 Justine Greening MP supports the introduction of card payments, including contactless payments, provided that cash remains a payment option and there is a sensible transition time for drivers to install equipment. She commented on the importance of good publicity so that passengers are made aware of the change.

London Assembly Transport Committee

4.15 The London Assembly Transport Committee supports the introduction of card payments as soon as possible in all taxis in London, including contactless payments. They commented on the following benefits that drivers have fed back to them: passengers tending to make longer journeys with cards; not having to stop at cash points; and a reduced risk of robbery. They suggest that


August 2015 | 36

TfL use its power to source the most efficient payment method. Finally, they

suggest that private hire drivers should be subject to the same mandate.

London Borough of Redbridge

4.16 LB Redbridge supports the introduction of card payments as soon as possible in all taxis in London, including contactless payments. They favour a complete removal of surcharges on card transactions in taxis and prefer that card

payment devices be linked to the taximeter.

London Borough of Bromley

4.17 LB Bromley supports the introduction of card payments in all taxis in London. They are concerned about the installation costs falling on self-employed drivers, and suggest that these costs be borne by TfL, as well as drivers’ schedule of rates being increased to cover extra charges associated with card payments. They advocate the use of Oyster or paying by phone as these will reduce drivers’ risk of assault or risk of loss from robbery. They commented that they

oppose any future move to make taxis cash free.

London Borough of Havering

4.18 LB Havering supports the introduction of card payments in all taxis in London, including contactless payments. They suggest the surcharge on card transactions should be reduced from its current level. While they do not support a card payment device fixed in one position, they do support it being linked to the taximeter. They are not in favour of payments by American Express as its

commission rates are too high.

London Cab Drivers Club

4.19 The London Cab Drivers Club supports the introduction of card payments as soon as possible in all taxis in London, including contactless payments. They support a reduction in the surcharge on card transactions and would welcome mobile payment methods including PayPal, Pingit and Paym being offered. They do not think the card payment device should be fixed in one position nor should it be linked to the taximeter. They suggest that American Express should

be accepted as well as Mastercard and Visa.

London Motor Cab Proprietors Association (LMCPA)

4.20 The LMCPA support the introduction of card payments in all taxis in London for the reason that it will improve cabs’ competitiveness and draw in more customers. They are not in favour of TfL mandating one type of payment device and indeed favour mobile devices over fixed units for reasons of passenger safety, ease of payment, and the cost and fixed contracts associated with the companies who provide fixed devices. They suggest a method of penalising

drivers who do not have a working card payment device in their cab.

The London Taxi Company (LTC)

4.21 The LTC supports the introduction of card payments as soon as possible in all taxis in London, including contactless payments, on the grounds that it will boost trade and improve consumer experience. They do not support the current


August 2015 | 37

surcharge level, suggesting this must be reduced before card payments are made mandatory. They suggest surcharges are unpopular with customers and should therefore be incorporated into the fare structure. LTC do not support mandating the exact payment method that drivers must use, nor the exact location within the vehicle of this device. Finally, they suggest that TfL and the London Mayor must publicise the change when it is made.

London Travelwatch

4.22 London Travelwatch supports the introduction of card payments as soon as possible in all taxis in London, including contactless payments. They support the complete removal of surcharges on transactions as well as offering Apple Pay and similar mobile payment applications. They support fixing the card payment device in the passenger compartment and it being linked to the taximeter. They commented that signage inside taxis should be revised and improved not only to provide information on card payments, but also to give improved information to the passenger on who the driver is, and more detail on

the process to make a complaint.

Miura Systems Limited

4.23 Miura Systems Limited provide hardware for card payment devices in taxis. They support the introduction of card payments as soon as possible in all taxis in London, including contactless payments. They think that the surcharge level should be reduced and that offering chip and PIN plus contactless is sufficient. Miura support a wide range of cards being accepted, including American Express, Discover and Union Pay. In their view, the card payment device does not need to be linked to the taximeter and should not be fixed in one place in the taxi.

Mountview House Group Limited

4.24 Mountview House Group Limited is the holding company of Radio Taxis, from whom a separate response was received. They support the introduction of card payments as soon as possible in all taxis in London, including contactless payments – they state that it is long overdue. They favour a fast implementation of chip and PIN and contactless technologies, with TfL being open to other payment methods in the future. They support keeping surcharges at their current level, so that equipment manufacturers can recoup their investment, but they would also support reviewing surcharges when volumes of payments have risen. They support taxis accepting American Express cards. In their view, in order for taxis to offer a consistent and convenient method of payment, card payment devices should be fixed in the passenger compartment and linked to

the taximeter.

Radio Taxis

4.25 Radio Taxis support the introduction of card payments as soon as possible in all taxis in London, including contactless payments. They support a card payment device fixed in the passenger compartment linked to the taximeter. Their view is that surcharges should be reduced from their current level. They


August 2015 | 38

support a wider range of payment options in addition to chip and PIN. They also

support cards other than Mastercard and Visa being accepted.

SO41 Group Limited

4.26 SO41 Group Limited support the introduction of card payments in all taxis in London, including contactless payments. They advocate a wider range of cards to be accepted (JCB, Discover, American Express, China UnionPay) as well as supporting payment through mobile phones and near field communication. They support the complete removal of surcharges on card transactions. SO41 Group would prefer the card payment device to be fixed in position in the

passenger compartment, linked to the taximeter.

Suzy Lamplugh Trust

4.27 Suzy Lamplugh Trust is a charity that works to reduce the risk of violence and aggression. They support the introduction of card payments as soon as possible in all taxis in London, including contactless payments. They support this measure as it will enable more people to use taxis, which they view as a form of transport which puts people at a low risk of violence and aggression. They support a card payment device fixed in the passenger compartment, as this reduces the need to interact between driver and passenger, and is therefore safer. They also favour linking the taximeter and card payment device. Finally, they commented that clear signage is important as it will reduce the opportunity for aggressive or violent confrontation at the end of a journey when payment needs to be made.

Taxiworld Limited

4.28 Taxiworld Ltd offer payment devices and taximeters for taxis. They support the introduction of card payments in all taxis in London, including contactless payments. They suggest that the following cards should be accepted in addition to Mastercard and Visa: American Express, Discover, JCB; they also support the introduction of swipe card payments and near field communication payments. They suggest a reduced surcharge on card transactions, as well as a fixed card reader in the passenger compartment, linked to the taximeter.

The UK Cards Association

4.29 The UK Cards Association (UK Cards) is the trade body for the card payments industry in the UK, representing financial institutions which act as card issuers and acquirers. The UK Cards Association supports the introduction of card payments in all taxis in London, including contactless payments. They cite an increase of 12% in card transactions across the UK in 2014, in addition to the demand for card payments cited by TfL in the consultation as evidence that card payments should be made possible in taxis. They suggest that card

payments are preferable to app-based payments as they are offer better protection against fraud. They do not advocate a fixed card payment device, suggesting the use of a ‘shuttle device’ which is mobile but can also be fixed a in cradle. UK Cards indicate that surcharging will be banned from 2017, so this should be factored into the decision about surcharging and general fares.


August 2015 | 39

Finally, they add that TfL should consider mandating card payments in private

hire vehicles too, as well as considering whether a receipt should be required.

Unite

4.30 Unite support the introduction of card payments as soon as possible in all taxis in London, including contactless payments. They also suggest the importance of accepting a wide range of payment types, including, for example, Apple Pay, Pay Pal, Pingit. Their view is that drivers should have the choice about which card payment method they accept – restricting drivers’ choice in this matter will meet with more resistance. Unite are therefore against the requirement of fixed card payment devices, as well as devices linked to the taximeter. They support surcharges being be as low as possible, and that customers, not drivers, should bear the extra charge. Finally, they support the acceptance of American

Express cards.

United Cabbies Group

4.31 The United Cabbies Group do not support the introduction of card payments in all taxis in London. They commented that TfL cannot legally mandate this change as it is obliging taxi drivers to accept payment by a form which is not

legal tender, i.e. credit and debit cards.

Verifone Limited

4.32 Verifone produce card payment systems. They support the introduction of card payments as soon as possible in all taxis in London. Verifone state that it is

important that the card reader:

Is fixed in the rear passenger compartment so passengers do not have to pass their card to the driver, and so both passengers and TfL can see if the taxi has a working card reader;

Is fully integrated with the taxi meter so the metered fare is automatically displayed on the payment terminal;

Has a passenger surcharge of 5% with possible reductions in the future, as a lower charge at this time would reduce the level of service provided by Verifone.

4.33 In addition to these conditions, Verifone also state that offline transactions must be supported (for when the network signal fails) and that the system should be able to print both a merchant and a cardholder receipt. They also suggest a 24/7 helpline should be in place to handle driver and passenger queries, as well as all card reader systems displaying the British Standards Institution safety kite mark.


August 2015 | 41

Appendices


August 2015 | 42

A List of stakeholders consulted Stakeholders

Taxi trade associations London Assembly Members

Licensed Taxi Drivers Association Mr Tony Arbour AM: London Assembly Member

London Cab Drivers Club Ms Jennette Arnold OBE AM: Deputy Chair of London Assembly

Unite the Union Cllr Gareth Bacon AM: London Assembly Member

London Suburban Taxi Drivers Coalition Cllr Richard Barnes AM: London Assembly Member and Deputy Mayor of London

RMT (Union of Rail, Maritime and Transport Workers) Mr John Biggs AM: London Assembly Member

United Cabbies Group Mr Andrew Boff AM: London Assembly Member

Heathrow Airport Taxi Drivers United Cllr Victoria Borwick AM: Transport Committee Member

London Motor Cab Proprietors Association Mr James Cleverly AM: Transport Committee Member and AM for Bromley

Taxi radio circuits and booking companies Mr Tom Copley AM: London Assembly member

Dial-a-Cab Mr Andrew Dismore AM: London assembly member

Radio Taxis Mr Len Duvall OBE AM: London Assembly Member

Computer Cab Cllr Roger Evans AM: London Assembly Member

Gett UK Ms Nicky Gavron AM: London Assembly Member

Hailo Cllr Darren Johnson AM: Chair of London Assembly


August 2015 | 43

Other licensing authorities Cllr Jenny Jones AM: Transport Committee Member

National Association of Licensing and Enforcement Officers

Cllr Stephen Knight AM: London assembly member

Institute of Licensing Mr Kit Malthouse AM: Deputy Mayor for Policing and London Assembly Member

Card payment companies and associations Ms Joanne McCartney AM: Transport Committee Member

123 Send Cllr Steve O'Connell AM: Transport Committee Member and Constituency AM for Croydon

Adelante Cllr Caroline Pidgeon AM: Chair of London Assembly Transport Committee

Cab Card Services (UK) Limited Mr Murad Qureshi AM: London Assembly Member

Cabvision Cllr Navin Shah AM: London Assembly Member

iView Ms Valerie Shawcross CBE AM: Chair of the Transport Committee & former Croydon Councillor

iZettle Dr Onkar Singh Sahota AM: London assembly member

MasterCard Mr Richard Tracey AM: Transport Committee Member and Constituency AM for Merton

Pay by Phone/Verrus Ms Fiona Twycross AM: London assembly member

Pay Cabs Members of Parliament

UK Cards Association Diane Abbott MP

Verifone Heidi Alexander MP

Verrus UK Ltd Gavin Barwell MP

Visa James Berry MP

User groups and other stakeholders Bob Blackman MP

Access in London Victoria Borwick MP

Action Disability Kensington & Chelsea Thomas Brake MP

Action on Hearing Loss James Brokenshire MP

Age Concern London Lyn Brown MP


August 2015 | 44

Age UK Karen Buck MP

Asian Peoples Disabilities Alliance Dawn Butler MP

Assistance Dogs UK Ruth Cadbury MP

Better Transport James Clappison MP

The British Dyslexia Association Jeremy Corbyn MP

Campaign for Better Transport Neil Coyle

City of London Police Stella Creasy MP

Disablement Association Barking & Dagenham (UK) Jon Cruddas MP

Department for Transport John Cryer MP

Disability Alliance Jim Dowd MP

Disability Rights UK Iain Duncan Smith MP

Disability Voice Bromley Clive Efford MP

Disabled Persons Transport Advisory Committee Jane Ellison MP

Edmonton CLP David Evennett MP

Equality and Human Rights Commission Michael Fallon MP

Greater London Forum for the Elderly Mark Field MP

Guide Dogs for the Blind Association Vicky Foxcroft MP

Hammersmith & Fulham Action on Disability Mike Freer MP

Heart of London Mike Gapes MP

Heathrow Airport Limited Barry Gardiner MP

Inclusion London David Gauke MP

Joint Committee on Mobility for Disabled People Cheryl Gillan MP

Joint Committee on Mobility of Blind and Partially Sighted People (JCMBPS)

Zac Goldsmith MP

Joint Mobility Unit Chris Grayling MP

Living Streets Justine Greening MP

Living Streets - Islington Sam Gyimah MP


August 2015 | 45

London Chamber of Commerce and Industry Stephen Hammond MP

London City Airport Greg Hands MP

London Cycling Campaign Harriet Harman MP

London First Richard Harrington MP

London Older People's Strategy Group Helen Hayes MP

London NHS bodies Meg Hillier MP

London Travel Watch Margaret Hodge MBE

Metropolitan Police Service Kate Hoey MP

MIND Rupa Huq MP

National Children's Bureau Gareth Johnson MP

Network Rail Jo Johnson MP

New West End Company Sadiq Khan MP

Private hire trade associations Virendra Kumar Sharma MP

Roads Task Force Members Kwasi Kwarteng MP

Royal National Institute of Blind People (RNIB) Eleanor Laing MP

Sense David Lammy MP

Sixty Plus Fiona Mac Taggart MP

Society of London Theatre Seema Malhotra MP

Stroke Association Dr Mathias MP

Sutton Centre for Voluntary Sector Siobhain McDonagh MP

Suzy Lampugh Trust John McDonnell MP

Train Operating Companies serving London Bob Neill MP

Transport for All Matthew Offord MP

TfL Youth Panel Teresa Pearce MP

Visit London Chris Phillip MP

London Boroughs Eric Pickles MP

City of London Stephen Pound MP


August 2015 | 46

London Borough of Barking & Dagenham Dominic Raab MP

London Borough of Barnet Steve Reed MP

London Borough of Bexley Andrew Rosindell MP

London Borough of Brent Paul Scully MP

London Borough of Bromley Grant Shapps MP

London Borough of Camden Tulip Siddiq MP

London Borough of Croydon Andrew Slaughter MP

London Borough of Ealing Keir Starmer MP

London Borough of Enfield Bob Stewart MP

Royal Borough of Greenwich Wes Streeting MP

London Borough of Hackney Gareth Thomas MP

London Borough of Hammersmith & Fulham Emily Thornberry MP

London Borough of Haringey Stephen Timms MP

London Borough of Harrow Chuka Umunna MP

London Borough of Havering Theresa Villiers MP

London Borough of Hillingdon Charles Walker MP

London Borough of Hounslow David Warburton MP

London Borough of Islington

Royal Borough of Kensington & Chelsea

Royal Borough of Kingston Upon Thames

London Borough of Lambeth

London Borough of Lewisham

London Borough of Merton

London Borough of Newham

London Borough of Redbridge

London Borough of Richmond upon Thames

London Borough of Southwark


August 2015 | 47

London Borough of Sutton

London Borough of Tower Hamlets

London Borough of Waltham Forest

London Borough of Wandsworth

Westminster City Council


August 2015 | 48

B Q2a: If passengers should be able to pay by debit or credit card in all taxis in London when should this requirement be introduced? - Other (please specify) Theme Code Count

Compulsory card payment Do not make compulsory 38

Date of introduction ASAP 13

When technology has developed 13

2016 9

Phased implementation 8

2020 7

2018 4

When no processing fee falls on drivers 4

2017 3

Date should allow drivers enough time to adapt 3

When vehicles go for NSL inspection 2

After consultation with the trade 2


August 2015 | 49

Theme Code Count

2025 1

2030 1

After next general election 1

Release of TX5 1

When an app for pre-registered cards is made 1

Other comment Criticism of consultation process 2

Muslim driver cannot accept credit card 1

Hardwired devices are in dangerous location 1

Ensure security of card data 1

TfL should publicise the introduction of card payments 1


August 2015 | 50

C Q4a: Should other methods, in addition to Chip and PIN and contactless, of accepting card payments be available in taxis? - Yes (please specify) Theme Code Count

Suggested payment type Oyster 49

Apple Pay 45

App 41

Paypal 36

Cash 36

Mobile banking 28

Swipe 24

All payment types 19

Signature 18

Contactless 15

Cab App 12

Chip & pin 11

Barclays Pingit 7


August 2015 | 51

Theme Code Count

Accepting cards should be drivers' choice 7

Anything that makes paying easier 6

izettle 6

Hailo 5

Online payment 4

Google Wallet 4

Zapp 4

Telephone authorisation 4

App using registered cards 3

Paym 3

Drivers should have choice of additional payment methods 3

Manual input 2

Taxi Too 2

Prepaid cards 2

Nfc 2

Payleven 2

Droplet 1

Bitcoin 1

Gold / silver 1

American Express 1

Show ID to prove payment card 1

Radio circuits 1

Printed Travelcards 1

All VISA cards 1

QR code 1

Barclaycard Anywhere 1


August 2015 | 52

Theme Code Count

Cashback apps 1

Loyalty 1

World Pay 1

Supports other payment types as long as do not incur extra costs 1

Other comment Many overseas visitors do not have chip and pin 13

Prioritise quick implementation of card payments first 3

Trial technology first 2

Not all visually impaired people have chip and pin 1

Fixed machines would not get payment to drivers who hire taxis 1

Add one payment type at a time 1

Don't want card payments 1

Ensure security of card data 1

Only from mainline stations / airports 1


August 2015 | 53

D Q5a: Should the current maximum surcharge of £1 or 10% when paying by card be changed? - Other (please specify) Theme Code Count

Surcharge Customers should pay charge, not drivers 20

No charge 17

Surcharge should cover extra costs to driver only 15

10% is too much 10

5% 9

As low as possible 9

£1 8

Support 10% 8

Cap at £2 5

2.75% (izettle) 5

3% 5

Different charges from different card companies 5

Charge reflects cost of investment in equipment 5


August 2015 | 54

Theme Code Count

Only on credit cards 3

Share charge between customer and driver 3

Incorporate charge in fares 3

Concern about effect on tipping 3

4% 2

Drivers should pay, not customers 2

3% 2

Flat rate 1

Half of surcharge should go to driver 1

Reduce surcharge gradually as more and more taxis have card readers 1

Pass charge on to banks 1

50p 1

Same as VAT 1

15% 1

Charge should be separate, not incorporated in fares 1

Only reduce surcharge for taxis if also for PHVs 1

Other comment Minimum card transaction amount £10 2

Card payments should not be compulsory 1

Carrying less cash is safer for drivers 1

Does not support card payments in taxis 1

Comment about TfL's treatment of taxis 1

Card reader should be provided by meter company 1


August 2015 | 55

E Q12a: If it was decided that passengers should be able to pay by credit or debit card in all taxis in London should other cards, in addition to MasterCard and Visa, be accepted? - Yes (please specify) Theme Code Count

Card type American Express 414

All cards 123

Diners Club 42

Oyster 29

JCB 21

China Union Pay 17

Maestro 11

Discover 11

Electron 8

Foreign cards 8


August 2015 | 56

Theme Code Count

VISA 8

Mastercard 7

Debit card 3

V Pay 3

Prepaid cards for tourists 2

Driver discretion 2

SOLO 2

VISA Debit 1

Marx 1

Contactless 1

Dankort 1

Pre-registered cards 1

Capital One 1

Delta 1

EAPS 1

Other payment type Paypal 10

Apple Pay 9

Google Wallet 2

Paper Travelcards 2

Other payment types will emerge in future 1

Express Pay 1

Other comment Concern about card fees 6

Criticism of consultation 3

Make payment immediately available to drivers 1


August 2015 | 57

F Further comments – All London drivers Theme Code Count

Charges Charges should be low - 10% is too much (e.g. Verifone) 95

Drivers should not be charged anything 33

Do not incorporate charges into fares - will penalise cash users 20

All credit cards should be zero charge for customers 17

5% maximum charge 8

Free for debit card users 3

All card payment methods must have the same charge level 2

Make customers aware of charges / card acceptance with a clear sign 2

Supports incorporating charges into fares 2

TfL should pay charges 1

Ensure drivers do not profiteer using charges as excuse 1

2% maximum charge 1

Banks to bear the charges 1

Compulsory card payment

Support for compulsory card payments in all taxis 90

Does not support compulsory card payments - accepting cards should be drivers' choice 46


August 2015 | 58

Theme Code Count

Minimum fare when paying by card 3

Does not support compulsory card payment at Heathrow as will extend waiting time 2

Supports compulsory card payment for drivers who work at Heathrow 2

If taxis are forced to accept cards, minicabs, limos etc. should too 1

Not all drivers have bank accounts 1

Card payment method Method of card payment should be drivers' choice 47

Doesn't support fixed unit - a mobile unit means drivers can use different vehicles 39

Supports use of izettle / Payleven 25

Concern about technical fault / non-payment / fraud (some suggest TfL to cover costs of non-payment) 22

There is a long delay for payment with some card machines (a particular problem when waiting in red zones) 20

Does not support linking card machine and meter 19

If card machine not working, taxi shouldn't be on the road - some drivers will pretend the machine is broken 15

Intermittent signal means machines do not always work, e.g. Euston, Shepherd's Bush 14

Accept contactless payment 11

Cards should be pre-registered or authorised at start of journeys 10

Driver finds that many customers pay cash even with card option 5

Support use of Verifone system, with reduced surcharge 4

TfL to source suitable card machine 4

Supports a standard card machine in every cab 4

Concern for impact on tipping 3

Machine should not be placed near drivers' head 2

Link card machine to the meter 2

Fix card machine in passenger compartment 2


August 2015 | 59

Theme Code Count

Against compulsory contactless payment 2

Does not support izettle charging drivers 1

All new taxis should be fitted with card machine as standard 1

Supports mobile payment over card payments as the latter will soon be overtaken 1

Integrate card system into TfL's processing of cards 1

Other payment type Supports use of Cab app - it has low charges 11

Oyster 11

Keep option to pay by cash 5

Supports Paypal 4

Have 1 taxi app, run by TfL 4

Supports use of Taxi Too 2

Most customers prefer to use app 1

Timescale Implement ASAP 6

Publicity TfL should publicise the fact that card payments will be available in all taxis 5

TfL should advertise the payment options to drivers 1

Other comment Concern about TfL's treatment of taxis 9

Regulate Uber 6

Tighten regulation on PHVs 4

Credit card-accepting taxi lanes at rail stations 3

Ban Uber 1

Comment on consultation


Questionnaire unclear 1


August 2015 | 60

G Further comments – Suburban taxi drivers Theme Code Count








5% maximum charge 1

Make customers aware of charges / card acceptance with a clear sign 1

Card payment method There is a long delay for payment with some card machines (a particular problem when waiting in red zones) 3





Method of card payment should be drivers' choice 1


August 2015 | 61

Theme Code Count

Other payment type Oyster 1



Some Muslim drivers cannot accept credit 1

Ban Uber 1


Consultation is not ambitious enough 1


August 2015 | 62

H Further comments – Taxi users Theme Code Count



Card payments would encourage more people to use taxis 18

Supports card payments as doesn't like/not always carrying enough cash 11


Supports compulsory card payment for drivers who work at Heathrow 3

Much easier to get reimbursed for a card payment than cash which means individuals are not out of pocket 3

Card payments are more traceable / transparent 3

If taxis are forced to accept cards, minicabs, limos etc. should too 1

Charges Concern about effect on tipping 8

Charges should be low - 10% is too much (e.g. Verifone) 5






August 2015 | 63

Theme Code Count

Drivers should not have to pay installation costs 2

Free for debit card users 1

Card readers in taxis do incur costs for providers, so a charge is reasonable 1

Card payment method


Prefer fixed card reader - more trustworthy 5

Not carrying cash is safer for the driver and for customers 4

Does not support linking card machine and meter 3


Link card machine to the meter 2



Supports use of izettle / Payleven 1

Machine should not be placed near drivers' head 1



Supports a standard card machine in every cab 1

China Union Pay is particularly complicated to accept 1

Drivers should be made aware of common scams 1


Apps increase time with a fare on board, therefore prices can be reduced 1

Complaint about paying for time spent withdrawing cash to pay for taxi 1

Important to have wide range of payment methods 1

Fix card reader in drivers compartment to avoid tampering by passenger 1


August 2015 | 64

Theme Code Count



Keep option to pay by cash 3

Supports use of Cab app - it has low charges 1

Complaint about drivers not having enough change when paying by cash 1

Disabled users If card reader linked to meter, how will Taxicard payments work? 1

Make sure card reader accessible for disabled users 1


Other comment Rival services such as Uber offer a much better service 11

Taxi fares are expensive 4

Tighten regulation on PHVs 2

Discount with Freedom Pass 1





August 2015 | 65

I Further comments – Potential taxi users Theme Code Count






This should be a national, DfT proposal 1

Card payment method Accept contactless payment 3


Fix card machine in passenger compartment 2



Important to have wide range of payment methods 1




August 2015 | 66

Theme Code Count




Concern about effect on tipping 1



Other comment Taxi fares are expensive 4

Rival services such as Uber offer a much better service 3

Receipts in taxis are another important issue 1

Concern about TfL's treatment of taxis 1

Regulate Uber 1




August 2015 | 67

J Further comments - Non-taxi users Theme Code Count







Card payment method Accept contactless payment 1



Other comment Consider other improvements to taxis, e.g. WiFi, air con 1

Reducing emissions of taxis should be a priority 1

Hard to find taxi south of the river 1


August 2015 | 68

K Further comments - Emailed responses Theme Code Count

Compulsory card payment Support for compulsory card payments in all taxis 7



Card payment method Concern about technical fault / non-payment / fraud (some suggest TfL to cover costs of non-payment) 5




Cards should be pre-registered or authorised at start of journey 2




TfL to cover costs of installation 1

Other payment type Keep option to pay by cash 3


August 2015 | 69

Theme Code Count



TfL to set maximum charge level 1


Regulate Uber 1

Appendix L

Response to issues raised

In this section, TfL have provided a response to issues and questions that were

raised during the consultation period.

The section has been broken up in to drivers and passengers.

Issues and points raised by drivers

Technology:

When technology has progressed

When an app for pre-registered cards is made

A range of methods of paying by card have already been approved by TfL for use by

licensed taxi drivers and if it is decided that passengers should be able to pay by

card in all licensed taxis then we do not want to restrict or limit the technology or

payment methods. Some app based payment methods may be approved for use in

the future however, we want to ensure that passengers have a consistent experience

and expectation when using taxis in London and for this reason we consulted on the

types of payment method (e.g. Chip and PIN, contactless) that should potentially be

available as a minimum.

Patchy signal means machines do not always work Although potentially there may be occasions when a weak signal means that

machines would not work, to date we have not had reports of this being a major

problem or one that should prevent a requirement being introduced to enable

passengers to be able to pay by card in all licensed taxis.

Chip and Pin:

Many overseas visitors do not have chip and pin

Not all visually impaired people have chip and pin

If it is decided that passengers should be able to pay by card in all licensed taxis

then requiring all devices to accept payment by magnetic swipe could be a minimum

requirement alongside Chip and PIN and contactless payment.

Fees:

When no processing fee falls on drivers

At present drivers are permitted to add a surcharge to the fare for accepting card

payments. If it is decided that passengers should be able to pay by card in all

licensed taxis then we will also consider whether to remove this surcharge

completely however, if we were to do this then it is likely that the costs would be

taken into account when reviewing taxi fares. It is expected that when the Payment

Services Directive 2 comes into effect in 2017 this will prohibit surcharges on

payments made using regulated cards.

Muslim driver cannot accept credit card


then we do not envisage any exemptions for drivers, including on religious grounds,

being permitted.

Devices:

Hardwired devices are in dangerous location

Any additional equipment, including card payment devices, fixed inside taxis must be

approved by TfL and as part of the approvals process we will check if the device is

safe and also specify the location where it can be fitted and these points will still be

taken into consideration when we decide whether passengers should be able to pay

by card in all licensed taxis.

Fixed machines would not get payment to drivers who hire taxis

Some rented taxis already have fixed card payment devices and there are

arrangements in place to ensure that drivers are paid and that different drivers can

use the same rented taxi.

Machine must be mobile so drivers can use different vehicles

There are already a number of approved devices that taxi drivers can use and some

of these are fixed whilst others can easily be used in different taxis.

One of the issues being considered as part of the consultation is whether the devices

should be fixed in the taxis. If it was decided that devices should be fixed inside taxis

it may still be feasible for some to be used in different taxis and transferred.

If card machine not working, taxi shouldn't be on the road - some drivers will

pretend the machine is broken

If it was decided that passengers should be able to pay by card in all licensed taxis

then all taxis would be expected to have an approved means of accepting card

payments and this would need to be working whilst the driver was working.

Concern about technical fault or non-payment

Where there are technical faults or queries about payments then these should be

raised with the relevant bank or provider of the card payment device in the same way

as they are currently.

There is a long delay for payment with some card machines

There are already a range of approved card payment devices and if it was decided

that passengers should be able to pay by card in all licensed taxis then we would

want to try and ensure that drivers still have a range of devices to choose from so as

they can compare different aspects such as the time taken to receive payment.

Patchy signal means machines do not always work

Although potentially there may be occasions when a weak signal means that

machines would not work, to date we have not had reports of this being a major

problem or one that should prevent a requirement being introduced to enable

passengers to be able to pay by card in all licensed taxis.

Surcharge:

Surcharge should cover extra costs to driver only.

Customers should pay charge, not drivers.

Share charge between customer and driver.

Drivers should pay, not customers.

Incorporate charge in fares.

All credit cards should be zero charge for customers.

Do not incorporate charges into fares - will penalise cash users.

Make customers aware of charges with a sign.


then we will also consider whether to remove the surcharge completely however, if

we were to do this then it is likely that the costs would be taken into account when

reviewing taxi fares so as to try and ensure that the drivers’ costs are covered by

fares. This would be inline with similar costs drivers have incurred (e.g. having taxi

receipt printers, installing emissions abatement equipment). This would mean that

cash paying passengers would pay the same fare as card paying passengers but

this is preferred to a two-tier fare structure split between card payments and cash

payments.

If there is any change to the surcharge and this is reduced or removed then this

would be stated on the taxi fare card, which is displayed inside every licensed taxi,

so as it was clear to both drivers and passengers.

Safety:

Carrying less cash is safer for drivers

One of the expected safety benefits of all taxis accepting card payments is that both passengers and drivers could have less cash on them and passengers would also not need to stop at a cash point. Machine should not be placed near drivers' head All approved card payment devices would still only be fixed in locations where it was safe.

London Heathrow Airport:

Card payment should not be compulsory at Heathrow as will extend waiting

time.

Drivers who work at Heathrow must take card.


then it is not envisaged that introducing this requirement will increase waiting times

at Heathrow Airport. Such a requirement would benefit passengers who wish to pay

by card and should reduce their waiting time and the current situation where they

may have to ask several drivers if they will accept card payments.

Private Hire Vehicles

If taxis are forced to accept cards, minicabs, limos etc. should too

Card acceptance by private hire operators is not being considered at present and

operators refusing to accept cards is not something that has been raised as a

problem to date.

Issues and points raised by Passengers

Safety:

Don’t have to carry cash or get cash from cash point

One of the expected safety benefits of all taxis accepting card payments is that both passengers and drivers could have less cash on them and passengers would also not need to stop at a cash point.

London Heathrow Airport:

Drivers who work at Heathrow must take card

One of the problems that has been highlighted for passengers at Heathrow Airport

who want to take a taxi is that they may have difficulty finding one that accepts

cards. This leads to the passenger becoming frustrated and delays their journey. So

a requirement that enables passengers to be able to pay by card in all licensed taxis,

including when travelling from Heathrow Airport, would benefit passengers. If all

drivers at the airport are already accepting card payments this should mean that

there is less impact on them if this requirement is introduced.

Surcharge:

Banks should pay installation costs

It is not envisaged that banks would pay for card payment devices to be installed in

taxis.

Card readers in taxis do incur costs for providers, so a charge is reasonable

It is acknowledged that drivers may incur a cost with having card payment devices in

their taxi. At present drivers are able to add a surcharge to fares when accepting

card payments however, if this surcharge was removed then options for including

some card payment device costs in taxis fares would be considered. Any surcharges

will also be affected by the Payment Services Directive 2 (PSD2) when this comes

into effect.

Device:

Card readers in taxis do incur costs for providers, so a charge is reasonable

It is acknowledged that drivers may incur a cost with having card payment devices in

their taxi. At present drivers are able to add a surcharge to fares when accepting

card payments however, if this surcharge was removed then options for including

some card payment device costs in taxis fares would be considered. Any surcharges

will also be affected by the Payment Services Directive 2 (PSD2) when this comes

into effect.

Transaction

This allows for an automatic receipt to be given rather than asking the driver

for one

If it was decided that that passenger should be able to pay by card in all licensed

taxis then it is likely that it would remain a requirement that approved devices would

still have to be capable of producing a printed receipt.

Vehicle:

Get Wifi in cabs

Get Air con in cabs

Some taxis already have a range of other features including Wi Fi, although at

present it is not a mandatory requirement. Most also have air conditioning.

Reduce emissions of cabs

The issue of air quality and how to reduce harmful emissions from taxis is being

considered separately and as part of the Ultra Low Emissions Zone (ULEZ) work. A

consultation on new emissions requirements for taxis has recently closed and a

number of new Zero Emission Capable (ZEC) taxis are already being developed for

use in the capital.

https://consultations.tfl.gov.uk/environment/ulez-2

Steer Davies Gleave has prepared this material for Transport for London. This material may only be used

within the context and scope for which Steer Davies Gleave has prepared it and may not be relied upon

in part or whole by any third party or be used for any other purpose. Any person choosing to use any

part of this material without the express and written permission of Steer Davies Gleave shall be deemed

to confirm their agreement to indemnify Steer Davies Gleave for all loss or damage resulting therefrom.

Steer Davies Gleave has prepared this material using professional practices and procedures using

information available to it at the time and as such any new information could alter the validity of the

results and conclusions made.

Paying by Credit / Debit Card in Taxis Consultation Analysis

Transport for London

Report

September 2015

Our ref: 22854001

Prepared by: Prepared for:

Steer Davies Gleave

28-32 Upper Ground

London SE1 9PD

Transport for London

Palestra 10th Floor,

197 Blackfriars Road,

Southwark,

London

SE1 8NJ

+44 20 7910 5000

www.steerdaviesgleave.com

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Documents

Paying by Credit / Debit Card in Taxis Consultation Analysis · 2015. 10. 27. · Background to the consultation 1.1 Since 2014 passengers have been able to pay by contactless credit