BIG BUSINESS: How card payment systems shape driver earnings in the taxi industry
- Perry Richardson
- Jul 8
- 3 min read
Updated: Jul 9
In London, taxi drivers are obliged by Transport for London (TfL) to accept card payments. There are other areas in the UK with mandatory card payment offerings too. Yet there’s significant variation between card terminals when it comes to fees, processing speed, hardware reliability, and overall impact on driver earnings. Here’s a look at how payment systems influence taxi driver revenues.
Transaction fees and hidden charges
Payment providers charge both a percentage fee and often a fixed per-transaction fee. Across the UK, rates range from roughly 0.3 % up to 5 % depending on the provider and card type.
Specialist providers aimed at taxi drivers typically offer around 1.5 %–2.0 % plus a small fixed fee (usually 10p–15p). For example, CabCard charges 1.5 % + 10p on most UK debit/credit cards. By contrast, mainstream systems like Zettle typically charge a flat 1.75 % per transaction, perhaps appealing for its simplicity.
However, drivers must be aware that this often applies only to UK-issued standard cards. Premium, corporate, or foreign-issued cards may attract much higher rates, commonly in the range of 2.5–2.9 %.
In some areas, again like London, there are restrictions placed on the type of terminals that can be used. For example, in the capital all terminals must be fixed to the cabin on the taxi ruling out many of the cheaper handheld options.
What this means for a typical driver
Assuming monthly card takings of £4,000, a 1.5 %–1.99 % rate equates to £60–£80 in fees. But if many passengers use premium or foreign credit cards, costs could climb to £100–£120 monthly, even before fixed charges. Over 12 months, that’s well over £1,000 in fees, directly reducing take-home pay.
If the transaction fees rise to around the 4% mark, cabbies can expect to be paying around £160 each month and nearly £2,000 over the year.
Payout speed and cash flow considerations
Next-day or same‑day settlement can critically affect a taxi driver’s working capital. Some providers offer payout into the driver’s bank account by the next working day; others delay until two or more days later.
For drivers facing daily running costs and no large financial cushion, settlement speed plays a key role in liquidity and operational resilience.
Hardware integration and reliability
Ideal card terminals for taxis must be integrated into the cab’s meter or securely mounted. TfL-approved hardware includes integrated units (e.g., Ingenico/ Miura devices) or mobile POS tablets that can be fastened in-cab.
Some systems require simple smartphone tap links or QR codes. These may offer cheaper processing rates but lack paper receipts and may not be TfL‑approved, but will work perfectly in other non-mandatory card payments authorities.
A dedicated device with PCR and printer avoids Bluetooth dropouts or battery issues and meets regulatory requirements.
Selecting the right system: key variables for drivers
Effective commission rate: Are all card types covered? May differ between UK, EU, foreign, and corporate cards.
Payout speed: Does the system offer daily or next-day settlements? Is there a charge for instant access?
Hardware type: Is the unit integrated, standalone, or reliant on smartphone via Bluetooth?
Contract terms: Monthly rental, installation fees, exit fees, or hidden extras.
Support and maintenance: Are there reliable fault support and driver helplines?
Compliance with regulations: Must be TfL-approved for London taxis.
Final thoughts for drivers
Ask your garage which card system is fitted and what fees actually apply across card types.
Confirm whether cards include EU, foreign, or business cards.
Check settlement frequency and fees; look for next-day or same-day payout options.
Make sure any device used meets TfL regulations (integrated/printed receipts).
Seek out independent feedback from other drivers using card payment devices in their cabs
Ultimately, while base rental costs grab attention, card terminal fees and payout timing can quietly erode earnings by hundreds of pounds annually. Drivers should audit their daily payment flows and choose terminals that maximise immediate income, lower costs, and offer reliability.
