MANDATORY? Why do some taxi drivers still not accept card payments in UK?

In today's world where digital payment options have become the norm, it may surprise some passengers that there are still taxi drivers who refuse to accept card payments.

While many businesses and taxi companies have made the switch to accepting card payments, some drivers still prefer cash. There are a few reasons for this.

One of the main reasons why some taxi drivers do not take card payments is the processing fees. Credit card companies charge a processing fee for every transaction that is made using their card. While this may not seem like a lot, for small business owners like taxi drivers, these fees can add up quickly and cut into their profits.

Another concern for taxi drivers is the processing time. Card payments take a few days to process, and for some drivers who may need the money right away, this can be a significant issue. Cash payments, on the other hand, are immediate, allowing drivers to receive payment instantly.

The reliability of card payment systems in some locations is also a concern. Some areas may not have reliable mobile connection, which can lead to payment complications. These ‘black spots’ can result in drivers losing a fare or having to go through the hassle of arranging payment for another day or method.

In some cities, cabbies must offer card payment options to passengers as part of their licensing requirements. Mandatory card payments were first introduced by Transport for London (TfL) in 2016, and subsequently adopted by other cities across the country, including Birmingham and Liverpool.

It may seem counterintuitive for taxi drivers not to accept card payments in today's world, but there are valid reasons why some drivers choose to stick with cash payments. Running a taxi is essentially their business to run as they see fit, and if they wish to restrict how potential customers pay, that is currently their choice for a lot of cabbies dotted around the UK.