What is "cabcharge"

The Cabcharge account payment system was established in 1976 to provide taxi passengers a way to pay for taxi fares by non-cash means. The payment system is owned and operated by Cabcharge Australia Ltd, an ASX listed public company.

The Cabcharge system has several aspects:

• Cabcharge accounts — customers can create a line of credit for use to pay for taxi fares and related charges, and involves the use of a Cabcharge credit card, e-ticket or paper voucher. The value of taxi fares paid using such instruments in Australia in 2007-08 was $455,307,773. Cabcharge levies a 10% service fee on such payments.
• payment processing system — drivers can process Cabcharge instruments and other non-cash payments (e.g. credit and debit cards) manual or electronically. The manual system uses dockets and cheque-like vouchers supplied by Cabcharge, which are processed using credit card imprinters. The electronic system uses EFTPOS terminals and other equipment supplied by Cabcharge. In 2008, Cabcharge’s EFTPOS terminals were present in approximately 95% of Australia’s taxis. Cabcharge does not charge drivers, owners or networks for supplying equipment for the payment processing system, instead charging passengers a 10% service fee. Networks are paid a commission out of the service fee.
• taximeters and meter updates — Cabcharge began supplying these from late 2004. Taximeters, which record the charge for each passenger’s journey, require regular updates for taxi fare changes. Updates cannot be installed by drivers or operators. A significant point of difference of Cabcharge’s meters compared to their competitors is that updates can be installed "over the air" by mobile telephony and Cabcharge’s EFTPOS systems, whereas competitors’ meter upgrades have to be physically installed, requiring taxis to be off the road for a period of time. The meters and updates are part of an integrated electronic payment and radio dispatch system with other taxi equipment supplied by Cabcharge.

Though called a service fee by Cabcharge, to the general public and government authorities it is commonly referred to as a surcharge, and has given rise to controversy, litigation and government legislative intervention.