Taxi Ride Way

[fuzzylogic]

just a quick question. We're here now and have been utilizing taxi cabs which, by the way, is awesome for 2 families! anyway, why do the cabbies seem to get a "look" on their face because I choose to pay by credit card? had one guy lie to me and say his credit card machine was broken, when I said I didn't carry cash, the machine magically was working again. so what's the story, anyone know?

 

[d1gitman]

i haven't had that happen but i would imagine cash tips are more desirable than anything put on the card that would likely have fees and taxes taken out.

 

[Dayton Flyer]

All cash tips can go unreported for income tax purposes. Plus, credit cards all charge their fees for usage. It's a double loss for the cabbie when people use credit.

 

[Alesia]

The credit card companies charge the cabbie a 3% fee for each transaction. It may not seem like a lot, but it really adds up over the course of the day.

 

[Brian_WDW74]

I've moved this thread to the Transportation forum.

 

[chartle]

My FIL was a cabbie.

As others have posted there are fees that the cabbie has to pay.

Most cabbies are independent drivers. They lease the cab from the company for a certain amount and whatever they make they keep (tips and the fare).

Credit Cards are probably processed by the cab company (There are ways a cabbie can do it themselves with a smart phone but its usually not allowed). When they cash out they get the CC money minus the processing fee (just like any other business).

For CC money they get a 1099 from the company which shows how much CC income they took in.

I would say though its more the fee than the taxes. They can easily hide some of the taxes from the cash fares. They wouldn't be so stupid as to hide all their money. The IRS would assume that they would make some sort of minimum amount.

 

[LilyWDW]

Hmmm.. I never would have thought to pay by credit card. I always have cash on me for tips and cabs. Shows you have often I take a cab that it wouldn't have even crossed my mind.