From the Chicago Dispatcher, January 2009
Accept Credit Cards (originally printed June 2004)
Get your own "fare increase" and more customers by accepting credit cards (no matter what the city does).
By: Dan Van Hecke, Master Chauffeur
First
Hold your doubts for now, as these will be covered later in the article.
Background
The City of Chicago is requiring all taxis to be able to electronically process credit cards for fares by June 1, 2004. Some individually owned cabs may be getting a short extension, but this began over one and one-half years ago and it is believed that this deadline is firm, and they will be actively writing citations on the street after this date.
How will this help me as a driver?
1. Usually Longer Trips. Most of these trips tend to be longer. Although current rules prohibit any minimum charge, with no additional surcharge, they are used most frequently for airport, suburban and multiple short trips.
2. Repeat Business. The customer will give a reliable credit card driver repeat business, with better tips. Would you like at least one O'Hare per day? Just advertise your service with some inexpensive business cards with the credit card logo on it. Any good printer has this for minimal or no cost.
3. Recognition. Better credit and professional recognition, as your customers will not want “just another hack”. Putting the credit card signs on your cab side windows will help them pick you out first in any cab stand. (Yes it is legal for them to choose any cab.)
4. Safety. As card use grows the risk of being robbed for cash goes down. Even if robbed, the card paper portion can be replaced (and you will still get paid ), as it was approved to that driver only. Cash is gone forever.
Doubts and Objections Department
1. I am an independent contractor, and the city can't tell me what to do, or how to run my business.
The city requiring cabs to take credit cards, and not other businesses, is a blessing in disguise because it is one of the few rules the city has done to help drivers make more money. When you get your chauffeur license or/and medallion, you agree to the rules and regulations, even though some of them may seem to “stink”. These can be dealt with on an item by item basis, to work to change if necessary. By resisting taking cards you are really saying “I would rather grumble and starve in my own way”.
2. Too Complicated. It is as easy to use as a touch tone phone. Follow the printed instructions given with your type of equipment. Tip #1- Use a yellow Hi-Liter to emphasize the action words that tell you to do something: Verbs, such as swipe, enter, check, press, etc. This will put the instruction in focus and enable you to easily see points you might be stuck at. Tip #2- Run some test charges for a nominal amount on you card or a friend's (now that no-minimum helps).
3. Takes Too Long. It takes about one and one-half to two minutes from when they hand you the card to when they are finished signing, once you have done a few. This is a little bit longer than a Michigan Avenue light.
4. You Have To Wait For Money. Depending on the company’s cashing hours and policies, they can be worked around to keep a consistent cash flow, Besides, it would be a good discipline to be about a week old or so ahead on your finances so the timing is on your own terms.
5. You Lose 5%. That's the easiest one! Would you mind losing 5% on a trip or combination of trips that are going to be 15-20% higher? Probably not, but you should always look at the larger picture so as to maximize the use of your time.
6. Card Rejection. A longer trip can usually be preauthorized for an estimated amount. Sometimes it can be rerun on the spot because what looks like rejection to the computer is only a loose swipe or numbers not catching. Nonpayment by credit card is a theft of services felony just as if by cash.
7. I'll Get A $5.00 (or less) Charge. So what? With the proper explanation and persuasion most customers will tip more.
8. There Will Be A “Paper Trail” Or Record On Me. Actually, you should want this because (A) There already is one when signed your master lease agreement with your Social Security Number. (B) Do you think the IRS or any other government agency thinks you are leasing for $300 to $500 per week as a hobby? So the more of you do of credit cards up to that amount and about $8,700 per year of net profit (after leases, gas, etc.) taxes do not begin. Most cabbies actually “fly under the radar” because it has not been cost-effective to collect, unless a person is living “high on the hog” while claiming minimum or no income.
Summary
The taxi industry lost much of its business to limos and other transportation services because
1. The driver and taxi were sloppy.
2. Service was unreliable.
3.Taxis would not take credit cards.
Chicago is finally coming out of the “Dark Ages” on this, and any driver who does credit cards will have first pick of the better customers and trips. Chicago is a world-class city and any driver should be proud of that, what they do, and who they are in the whole scheme of things.
