Cab drivers already have it tough with rising gas prices. Now, places like Chicago require that they accept credit cards. While this is a convenient alternative for consumers, some taxi cab drivers have to pay up to 5% for each transaction. So on a quick $10 cab ride, $.50 goes directly toward processing a credit card transaction. This can really impact profitability with the costs of higher gas, car maintenance, association fees and consumers who don't tip. With most everyone looking to hold onto more of their money, tips are likely to be one of the first things on the list.
It’s also common for cabbies to broadcast credit card information over their radio, so that the transaction can be process with the dispatcher. Obviously, this increases the likelihood for someone to get hold of your credit card information. If a taxi driver refuses to accept a credit card in Chicago, they can risk having their license revoked if the incident is reported to the Department of Consumer Services. If you have the alternative to pay with cash, I'm sure your next cabbie would really appreciate it.
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