Taxi industry gets look at credit card transaction regulations

By Richard N. Velotta

Thursday, June 24, 2010 | 3:29 p.m.

Representatives of the city's taxi industry got their first look at proposed regulations on paying fares with a credit or debit card today and representatives of the Nevada Taxicab Authority indicated they'll have at least two more meetings before new rules are adopted.

In a workshop meeting, representatives of most of the city's 16 cab companies weighed in on the first draft of the regulations. Another workshop meeting will be scheduled in mid-August before final adoption in late August or September.

The Taxicab Authority last month approved allowing cab companies to charge a $3 processing fee for credit and debit card transactions and ordered regulations on details involving cardholder security, how to handle equipment failures and the reporting of fee revenue.

Most company representatives are supporting the regulations with only a few minor disagreements on the proposed rules. Among them:

* The proposed regulations would require cab companies to display on the outside of their vehicles that additional charges would be assessed for credit and debit card transactions. Some companies that already have begun using card transactions have complied with the rule but some companies questioned whether the amount of the fee needed to be disclosed.

* The proposed regulation required listing the permit number of the driver, the Taxicab Authority's phone number and e-mail address on card receipts. Industry officials suggested that a cab number be used instead of a driver permit number, since companies would be able to track down the driver based on the cab number and the time of the transaction. Industry officials also suggested eliminating the Taxicab Authority contact information since the companies and not the agency would be best equipped to follow up on problems.

* Industry officials questioned whether the regulation should include a prohibition of operating a cab if the processing technology was inoperable. Company officials wanted to be able to keep the vehicles in service and operate them as "cash only" cabs.

* The regulations require that the card system operate so that drivers won't have to handle a card. Systems must have card swiping technology accessible from the rear compartment of the cab. Industry officials discussed whether drivers should be allowed to handle cards in rare occurrences when the transaction technology can't access the wireless network to complete the payment.

* Cab companies would be required to report annual gross and net income of revenue received in credit card processing fees or from third-party vendors that provide the technology.

* Drivers would be required to notify their employers of any defective taxicab technology systems.