Taxis’ secret ‘10% sting’

ERIN PEARSON
GEELONG taxis are slugging unwitting passengers a 10 per cent service fee for EFTPOS payments, an Independent investigation has discovered.
The taxis fail to warn of the fee with in-car advertising or on 13CABS and Victorian Taxi Directorate websites.
In-car stickers and websites advise of service fees only for major credit and Cabcharge cards.
Passengers pay the EFTPOS hit through the Cabcharge system.
The fee is automatically added to fares and includes its own GST.
An Australian Competition and Consumer Commission spokesperson said merchants must ensure consumers were aware of the fee before entering the transaction.
“Merchants must not mislead or deceive consumers by failing to disclose this information prior to accepting payment.”
In August Taxi Inquiry chief Allan Fels called on the Reserve Bank to investigate whether the 10 per cent surcharge levied on taxi fares was justified.
Mr Fels, who made the request as part of the inquiry, said the surcharge looked “extremely high”.
But Victorian Taxi Directorate spokesman Bob Neilson said the service fee system was unregulated.
“Additional charges aren’t regulated by the VTD, so Cabcharge and the like can essentially charge what they like to any electronic payment made in cabs, including EFTPOS accounts.”
Geelong Taxi Network boss Peter Valentine said he was unaware his drivers were failing to warn passengers.
All Geelong taxis were required to have Cabcharge payment systems, he said.
Mr Valentine described the Victorian taxi system as the world’s best.
“People have got to get over this horror story with cabs, thinking they’re all bad.”
Geelong Public Transport Users Association convener Paul Westcott said buses provided a cheap alternative to taxis for travellers concerned about extra fees.
Passengers could travel around the region for up to three hours on a full bus fare for less than $2, he said.
Cabcharge Australia failed to respond to the Independent’s request for comment before the paper went to press.