Cabs Take Plastic, Get Mostly Paper
It was supposed to be the next big thing. In November of 2007, New York City cab drivers were required to start accepting credit cards as a form of payment. Most have already complied. But now it’s six months later, and the majority of passengers still use cash to pay their fares. Some cabbies are mad, while others are more philosophical. Why aren’t passengers swiping their credit cards to pay for cab rides?
Like any big change, getting people to use a new payment method will take some time. It is estimated that 87% of cab fares are still paid in cash. That means that 13% of cab passengers are taking advantage of the new system that has only been in place for six months. The change is slow, but it’s happening. Chances are, passengers are simply accustomed to having cash on hand for their cab fare. Also, there are still a significant number of cabs which do not take credit cards. These will be equipped with card readers by fall of 2008.
Meanwhile, some cab drivers complain about the amount of time it takes to receive credit card payments. Some transactions take weeks to process, leaving cabbies unpaid and unhappy. How long will it take before New Yorkers start handing over the plastic rather than the paper? If train stations, ballparks, and other places that recently began accepting credit cards are any indication, it will soon be smooth sailing for cabbies who take cards.
