Oyalo Blog

Why Taxis Only Accept Cash and Other Weird Practices in Payments

Posted : Monday, May 08, 2015

Despite the many advances in credit-card and mobile payment technologies in the past decades, many industries cling to archaic, non-consumer friendly payment methods´ case in point: Why do taxi drivers often insist on cash payments? Here´s a look at why you can´t make sense.

Why do taxi drivers insist on cash?

Even though most taxicabs are equipped with credit card readers, when you pull out your card to pay, you may very well hear the driver tell you that the reader is broken´s fully functional. That´s because drivers are charged transaction fees for credit card purchases that can eat into their take-home pay: In San Francisco, that amount totaled 5 percent of the purchase until last year; it´s since been lowered to 3.5 percent. It is not legal for drivers to tell customers they can´t pay via card if they do have a working reader, so if this happens to you, you should take note of the driver´s ID number and call it in to your city´s department of transportation.

Why do I need to sign my credit card when no one ever checks my signature?

When you make an in-store purchase, merchants are supposed to check the signature on your receipt against the signature on your credit card ´ but if you don´t remember the last time someone checked your card, you´re not alone. This anti-fraud measure was put in action in the years before credit card companies developed their own high-tech anti-fraud measures, and these days, most merchants aren´t too concerned about signature checking. In fact, credit card providers Visa and MasterCard have both stated that signing a receipt is no longer required at all for purchases under $25.

Why do some stores implement a minimum purchase price to pay by credit card?

In many stores where small transactions are common, credit card fees can take a big bite out of their already low profit margins, so many stores ask for a $10 minimum purchase to pay by credit card. Until 2010, this tactic was technically illegal ´ but after the Dodd-Frank Wall Street Reform and Consumer Protection Act went into effect that year, the federal government made it permissible for stores to request up to a $10 minimum purchase for credit card use, so make sure to keep a bit of cash on hand when shopping at such stores.

Are Bitcoin transactions safe?

Bitcoin transaction are secured using what's called public key cryptography encryption, a two-part encryption process that involves a combination of public and private data. Each transaction is publicly verified by the peer-to-peer community network of Bitcoin users so they are generally considered safe.

Why would I want to accept them as payment?

Bitcoin can be attractive to business owners mainly because there are zero bank or credit card transaction fees to accept it, which can lead to higher profit margins, more competitive pricing and the ability to operate globally at lower cost. And Bitcoin transactions are completed instantaneously and anonymously, without having to go through a third-party bank, credit card company or PayPal.