If you thought you were paying too much for credit card processing, imagine being a cab driver in San Francisco. They are now being made to pay the 5% credit card processing fee for any fares that want to pay by a credit card. The fees have been shifted from the cab companies to the actual drivers and since most people prefer to pay with credit cards vs cash, this adds up to some hefty fees for the drivers.
Yellow Cab Cooperative Inc., the city’s largest cab company, stated they process more than $3 million per month in credit card transactions. A 5% charge per month on the $3 million is $150,000 and $1.8 million per year in just processing fees. We have found that most companies are paying 2% to 3% instead of the high 5%. Even taking the higher 3%, the savings would be more than $700,000 per year over what they are currently paying. And that’s just for one cab company. Imagine the savings potential here.
Click here to read the entire article in the Wall Street Journal.