MANDATORY CARD PAYMENTS IN UK TAXIS: Industry split on whether cash should still pull the king status
- Perry Richardson
- Jul 28
- 3 min read
Updated: Jul 29
Taxi drivers across the UK remain divided over whether accepting card payments should be mandatory. A recent question posed by TaxiPoint asked readers: Should card payments be mandatory in ALL taxis in the UK?
The reaction was overwhelming, with hundreds of drivers and industry associates weighing in. What emerged is a strong difference of opinion that reflects the challenges of operating across both urban and rural areas, the realities of self-employment, and the ongoing shift in customer payment habits.
Modern expectations vs traditional trade practice
Card payments have become the norm in many sectors, and some passengers now expect the same convenience in taxis. For those in favour of mandatory card acceptance, the argument is that it’s what most customers want. One respondent pointed out that passengers, particularly business users and tourists, often travel without cash and expect to pay by card as they would in shops or on public transport.
Drivers working in cities like London are already required to accept card payments. Some said the policy has helped keep black cabs competitive with app-based services such as Uber, which take cards by default. One London driver said: “If we hadn’t been made to accept cards, we’d be finished as a trade.” Another noted that taking cards attracts longer jobs and business from those with corporate accounts.
Several drivers also highlighted that card payments make it easier to manage income and expenses. Transactions are automatically logged, which helps with end-of-year accounts. With digital tax reporting coming into effect for self-employed workers, this could become a key benefit.
Rural and technical concerns
But many working outside cities raised serious objections. One of the most common issues is patchy phone signal. Drivers in rural areas said they often struggle to get a connection strong enough to process a card transaction, especially at night or near events with limited or overstretched mobile coverage. Some described situations where payment failed at the end of a journey due to poor reception, leaving them unpaid and out of pocket.
Even in towns and city centres, drivers reported problems with connectivity. Several said it’s not uncommon for card readers to lose signal in multistorey car parks, train station drop-off zones, and during high-traffic periods when mobile networks slow down.
Others pointed out that processing fees from card providers eat into already tight margins. These fees, typically around 1.5 to 3 percent, come out of the driver’s earnings. “I’m already paying for fuel, insurance, vehicle maintenance and now you want me to pay banks too?” asked one cabbie. While some companies allow these fees to be passed on to the passenger, many drivers said this wasn’t allowed or could deter customers.
Freedom of choice and self-employment
For a large number of respondents, the issue was not technical or financial, but one of principle. Many taxi drivers are self-employed sole traders and believe they should have the right to decide how they are paid. “No one tells a barber or a corner shop how to take money,” said one driver. “So why are taxis being singled out?”
Others raised concerns about fraud and chargebacks, where passengers dispute card transactions after the journey. Some drivers reported losing fares this way, while others pointed out that if a card payment is taken in advance and the journey changes, the driver could end up underpaid or accused of overcharging.
Where does the balance lie?
Despite the divide, a number of drivers said they already accept both cash and card, seeing it as a way to accommodate all passengers. They argued that instead of making card payments mandatory, authorities should require that drivers clearly display what payment methods are accepted before a journey begins. This would prevent disputes and let passengers make an informed choice.
There was also discussion around whether passengers, not drivers, should pay card fees. Some suggested adding a small surcharge, as is done with airport drop-off fees and toll roads.
In London, the requirement to accept cards is in place, and some other local authorities are considering following suit. But outside major cities, drivers are calling for flexibility. As one rural driver put it: “I’ll take a card if I’ve got signal. But don’t make it a rule when it doesn’t always work.”
The discussion reflects a wider shift in the UK economy as cash use continues to fall. But for many in the trade, cash still offers reliability and control. The question is whether regulation will keep up with digital habits or protect traditional practices. For now, the answer remains anything but unanimous.
