In an age where fewer people are carrying money, more competitors are willing to accept credit cards to cover costs. Unfortunately, this shift is the catalyst for the disappearance and discontinuation of cash-only cabs. However, the taxi business continues to evolve to meet passengers’ expectations so it can compete with rideshare platforms.
Furthermore, as you move toward expanding payment methods, you’ll want to learn how to accept credit cards for your taxi business and about different point-of-sale solutions since they don’t all offer the same features and benefits.
Find a Credit Card Processing Provider
If you’re a driver willing to accept credit cards, you’ll want to set locate a trustworthy credit card processing company. Also known as merchant service providers, credit card processing companies provide services that enable businesses and independent contractors to accept credit cards.
Merchant providers typically offer necessary software that supports transaction viewing and access to information involving fees and chargebacks. Businesses working with card processing providers can purchase or lease hardware like card terminals and mobile readers to integrate.
What To Look For in a Provider
Providers typically offer the same services, but considering rates, fees, and compatibility is a crucial decision to make. Think about the types of credit cards you accept and whether you can afford to pay processing fees for each card network.
Fees and Volume
A provider that is the best fit will offer competitive fees for transactions and cards you’ll process the most. The perfect provider may also provide better rates for businesses processing more payments.
Fortunately, acquiring taxi card payment systems is a no-brainer when working with us at Electronic Transfer. Our competitive services and technology can allow taxi businesses of all sizes to accept various forms of payments that are compatible with iPhone and Android terminals.
Set Up a Merchant Account
Once you decide on your credit card processor, create a merchant account. This account should only record business finances that are separate from personal funding.
Creating your books may involve providing information about your taxi business and establishing a connection with company finances that determine where you’ll deposit funds.
Remember that your credit card processing company takes on risk when providing accounts, so underwriting is necessary. Basically, the payment processor accepts liability and guarantees payment in the event of damage or loss.
The merchant service provider may collect information on the following to determine approval:
- Business type
- Years in business
- Billing method
- Business owner’s credit score
- Chargeback history
Once you provide information, you can expect your account to be up and running in about 24 hours.
Establish Payment Terminals
After the ink dries and paperwork subsides, you can start setting up payment terminals in each vehicle. Considering the mobility of taxi businesses, think about some of the following options as ways to accept credit cards for your taxi fleet.
Mobile Card Machines
As a step forward in payment acceptance, mobile card machines are tried-and-true options that allow businesses to process transactions while on the go. Setting up the machine takes a few moments, and you’ll often find them in the center console of the vehicle or a location accessible to passengers.
Mobile card swipers are functional, convenient options for businesses that require location independence. Card machines also eliminate the need for checks; passengers can swipe and input PINs in a matter of seconds.
Most portable POS systems have Bluetooth and WiFi connectivity features; all you’ll need is data or a hotspot to start the connection. Equipment may also feature encryption technology to help combat data breaches and fraud, so customers can rest easy knowing the safety of their card information.
In a modern online age, more people choose to pay for services online. If your taxi business has a dependable website that supports online payment portals, you can utilize the feature to your advantage.
Online payment portals contribute to a business’s accessibility and allow passengers to pay in advance, eliminating the need to carry physical currency. You would also benefit from incorporating a scheduling system that will enable passengers to select pick-up times that best fit their availability.
Another way to accept credit cards without needing physical wallets is an over-the-phone payment. You’ll typically notice these card-not-present transactions in restaurants when placing take-out orders; however, the transactions can suit taxi businesses as well.
If you opt out of the online payment option, you can link your business contact information so passengers can call and schedule a pick-up. The process would then involve the customer sharing their credit card information with you while you manually enter the data into a card reader.
Keep in mind that these transactions can typically see the highest processing fees since they pose the most significant risk of fraud and chargebacks.
Credit card apps are another way to accept credit card payments, as some can offer free trials for their services. Due to the limited functionality of some apps, you want to choose one that is responsive and can work with device processors.
Specific apps will incur varying card processing fees based on their features, with some applying charges per transaction. These apps may also have an interface that supports the inclusion of tips before finalizing payment.
Whether it be an app or a mobile card reader, you want to include a system that is easy for you and your passengers to operate! One of the most detrimental aspects of a business is having a tricky system that presents challenges during payment.
Having outdated or troublesome hardware can create a negative experience for riders, potentially turning them away from using your services in the future.
Taxi business owners see no shortage of options when accepting their customers’ credit cards as payment. Furthermore, learning to accept credit cards for your business broadens your company’s accessibility, making it more convenient for those looking for your services.
Getting with the times may require evaluating your current credit card processor, and when it comes to taxi payment systems, Electronic Transfer can help! We assist high-risk merchants and supply taxi companies with iPhone and Android-friendly apps to help modernize their businesses.