Taxi Service
The Cabcharge account payment system was developed in 1976 to provide taxi guests a method to pay for taxi fares by non-cash means. The payment system is owned and operated by A 2B Australia (formerly Cabcharge Australia), an Australian Securities Exchange noted public business. In the UK and Singapore, Cabcharge is operated by subsidiaries of Comfort Del Gro. Cabcharge Australia's industrial activities, in which the Cabcharge payment system is an essential part, have been questionable at times and the business has faced routine allegations of excessive charging or profiteering and predatory and anti-competitive practices.
The Cabcharge system has a number of elements: Cabcharge accounts-- customers can create a line of credit for use to pay for taxi fares and associated charges, and involves making use of a Cabcharge credit card, e-ticket or paper coupon. The value of taxi fares paid utilizing such instruments in Australia in 2007/08 was over A$ 455 million.
payment processing system-- motorists can process Cabcharge instruments and other non-cash payments (e.g. credit and debit cards) by hand or digitally. The manual system uses dockets and cheque-like coupons provided by Cabcharge, which are processed using credit card imprinters. The electronic system utilizes EFTPOS terminals and other equipment supplied by Cabcharge.
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Cabcharge does not charge drivers, owners or networks for supplying equipment for the payment processing system, rather charging guests a 10% service charge. Networks are paid a commission out of the service cost. taximeters and meter updates-- Cabcharge started providing these from late 2004. Taximeters, which tape-record the charge for each traveler's journey, require regular updates for taxi fare changes.
A considerable point of distinction of Cabcharge's meters compared to their competitors is that updates can be installed "over the air" by mobile telephone and Cabcharge's EFTPOS systems, whereas competitors' meter upgrades have to be physically set up, requiring taxis to be off the road for a time period. The meters and updates are part of an incorporated electronic payment and radio dispatch system with other taxi devices supplied by Cabcharge. Though called a service charge by Cabcharge, to the general public and federal government authorities the charge for processing credit card payments is frequently referred to as an additional charge, and when it comes to Cabcharge the initial 10% charge has generated controversy, litigation and government legal intervention., see more here at Taxi Service
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Western Australia reduced the surcharge to 5% in February 2015. The practice was likewise examined by the Reserve Bank of Australia. Cabcharge provides EFTPOS terminals, totally free of charge or listed below cost, to approximately 97% of taxis in Australia. However, there are competitors like Live taxi and Motorpass. Cabcharge validates the surcharge on the basis that it sustains the expenses related to transactions consisting of card and other item production, in-taxi processing, administration, fraud protection and examination, arrangement of declarations and motorist education.
Criticism has actually emanated from different sources including the chair of the Taxi Industry Query, Teacher Allan Fels, the previous head of the Australian Competitors & Customer Commission, and leading card business. The 10% charge is currently being evaluated by the Reserve Bank of Australia. Teacher Fels just recently approached the Reserve Bank of Australia to help lower the 10% additional charge.
You have no choice if you pay digitally, you need to pay 10 percent additional. That's really high. There is no competition. You either pay 10 percent or you pay money." "The 10 per cent additional charge looks incredibly high," he stated. "For Victoria, the charges total (is) $25m (a year), so extrapolating that for Australia it need to be around $100m.