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Las Vegas Sun File
Taxis wait at “the pit” for fares at McCarran International Airport. At any time, there are about 2,000 cabs on Las Vegas streets.
Tuesday, May 24, 2011 | 11:55 p.m.
Sun coverage
CARSON CITY — Las Vegas taxis have for the past year been tacking a $3 charge onto fares paid with credit or debit cards. Now the industry wants to cement that charge into state law.
The Nevada Taxicab Authority, which regulates the industry, set the $3 transaction fee based on the cost of installing credit- and debit-card readers in cabs plus a reasonable profit. Assembly Bill 351 would establish in law the authority’s ability to tack on the fee to fares.
Credit card companies said they were unaware of the surcharge until recently, when the politically active taxicab companies began pushing for the bill’s passage.
The Assembly approved the bill earlier this session with minimal opposition. But it is beginning to draw some resistance.
“It’s exorbitant,” said Michael Hillerby, a lobbyist hired by MasterCard. “Nothing we’ve seen justifies that charge.”
William Uffelman, president and CEO of the Nevada Bankers Association, said: “There’s good public policy, then there’s self-serving efforts. This is a self-serving effort.”
The average Las Vegas cab fare last year was $13.52, according to the authority. The $3 fee works out to an average 22 percent surcharge.
Hillerby estimated that Las Vegas cab companies make $13 million annually from the charge.
Neal Tomlinson, an attorney who represents Frias Group, which owns Ace Cab and Union Cab, said he did not know how much the companies are making off the fees, although he said costs had to be recovered, and customers were paying for the convenience of using credit and debit cards.
Tomlinson said the credit card companies are OK with the charge, but don’t want it separated from the fare.
“The question is should they embed the fee and hide it, or disclose it?” Tomlinson said. “The authority decided to disclose it.”
After the bill hit a snag in the Senate Transportation Committee, Frias offered an amendment: Pass the bill, and taxi companies will pay about $1 million over the next two years to subsidize senior taxicab rides. That program would be eliminated under Gov. Brian Sandoval’s budget.
“It’s a step forward in the spirit of compromise,” said Greg Ferraro, a lobbyist for Frias.
The bill is expected to be heard on the Senate floor today or Thursday.
Having set up and managed a 'merchant' credit card account, the cost of a taxicab transaction in Las Vegas should average out to be less than a dollar.
The $3.00 surcharge is just one more instance of the foxes guarding the hen houses, the politically connected lording over the board that should have been politely saying 'no' to them in this instance.
My advice to anyone, tourist or local: Carry enough cash to cover your cab fare (and hopefully to give a nice tip to the driver, IF (s)he has served you well).
Vote with your pocketbook, and don't let this outrageous outlay drain you of even more of your money.
I think this will hurt the drivers themselves.
As a former driver, I know most drivers need that money in their pocket. If someone has to pay $3 no matter where they are going, they are gonna be reluctant to tip the driver $5. if they have to pay $10 for a min ride & $3. for a fee.
A decent tip for any driver should be the cost of a Coffee @ Starbucks allowing the driver to tip the employee @ the coffee joint and thus continuing the flow of improving the livelihood of another....Pay it forward...
It seems rather absurd to make such a ridiculous fee. This will only hurt the drivers, as the customers will continue to use cards, but will the full disclosure of fee's, be reluctant to tip the driver.
While the subject of tipping is now here, I just don't understand why tipping the driver occurs for any reason other than handling large baggage. The industry is so crooked, that it really isn't warranted unless you are a customer who spells out the exact route to take, and the driver actually complies. Hey, if the drivers don't like what they do, they can always go get a formal education and find a different occupation.
Sorry Guys but if I get a $3.oo charge ..no tip ! and I tip... the customer service is minimal in the cab business,,, the greed keeps the drivers from making a buck.. !
Lets get that monorail to the airport and to downtowm.. (who do I have to bribe ! cause you know why it is not going to these locations bribery )
This should bring droves of people to the taxis. It is time to quit abusing the visitor to Vegas for a quick buck. This also applies to the Casinos.
Anyone that gets in a taxi has the option of paying with cash. That is true. However today, most people don't carry that much cash, thanks to multiple factors, one being the ease and security that a credit or debit card provides.
Having said that, Charging $3 to use a credit card is an outrageous ripoff. $3.00 on a $10 dollar fair is 30%. What other industry adds a 30% charge to their price? I can understand adding in the extra cost of the % that the credit card companies charge in to the price on the meter so that it works out, so the taxi doesn't lose money, but at most that would only add 3 cents max (The fare would have to be $300 for the charge to be $3.)
Can you imagine going into a Starbucks and buying a coffee for $5.00 and the cashier tells you that will be $8.00?
The problem here is that when one gets in a cab, they need a cab. I know that money is tight, but how can anyone justify such a blatant surcharge? (I thought I read somewhere that Las Vegas taxi fares are the highest in the US already.)
Just another example of how dysfunctional and out of touch with its people our government has become.
I understand to a point but $3 is insane, and it certainly should be waived if the fare is over X amount of dollars
This is one of the better ways to keep tourists from coming back to Las Vegas. Nickel and dime them everytime they move. Grab a buck here, 3 bucks there, next year they'll be off to Orlando. Maybe the Casinos should get into the cab or shuttle bus business big time.
TOO MANY TAXI CAB DRIVERS!! That's the real problem.
Many moons ago, when I drove a cab in CC, the Co. experimented with credit cards and decided to charge drivers 60 cents when a fare used one. I quit accepting them. I was a restaurant owner before moving to LV and accepted all credit cards. I did not charge my waitresses (that was before the politically correct term "food servers" came into vogue) when a patron used one. It was my choice, as the owner, to accept them and my resposibility to pay the fees, not my employees or patrons. This is just another way greedy and thoughtless cab Co. owners act because they have a state-mandated monopoly! They don't like the fees imposed by the credit card Co.'s? Then don't accept them! The Taxicab Authority ought to put and end to this outrageous procedure and quickly! Don't count on it. The T.A. works for the Co.'s not the general public!
Add the ATM fee to the padded long haul rate - what's next a fuel surcharge or a fee for more than one suitcase? How about a premium charge to go to the Bellagio or Aria? This town amazes me with all its sleazy tactics. Does the taxicab authority need more juice?
Real clever. "We'll subsidize a program that next year probably won't exist anymore."
The taxi cab industry is getting filthier by the day. They mistreat their drivers, and even worse, their customers.
When someone who is a lobyist for a credit card company admits it's wrong , then you really know it's wrong.
People have a choice to pay with cash. The credit card machines in taxis are a convenience. ATM machines charge a fee. ATM machines are a convenience. The problem is we have become a society of "IOU Millionaires".
I think they should let the cab companies charge $3 if that is what they are happy with. But then since cab co owners are getting filthy rich because of thier sanctioned business practices I belive that the state should amend the constitution that exempts cab co.'s from paying at least minimum wage to drivers as these cab companies continue to expand thier fleets on the road and dilute the over all per driver business availiable while while most make thier drivers responsible for all or most all the expenses and fees from the daily costs of driving the vehicles, shrinking large numbers of drivers incomes to incomes far below state minimum wage.
@benmerliss: excactly right.
The three dollar fee might be a bit excessive, but a fee should be charged. At the local restaurant that I work for, we have constant hassles with credit cards and we pay a lot of money for fees and lose a lot of money on chargebacks.
The reason the Mastercard lobbyist is against the bill? Because every time you swipe your card, they collect a fee. The reason for all those Visa commercials with people singing and dancing and swiping their cards? Because they collect a fee every time you swipe your card.
They don't really care about convenience - they want to skim a little off every transaction you make. And if they collect some interest because you have to carry a balance over, so much the better.
Put some cash in your pocket and save yourself and local merchants trouble and expense on your routine everyday purchases - you also might manage your budget better.
I had an occasion to take a cab a few months ago. I paid with my CC. The cabbie charged me the fee. There was no sign in the cab about the fee. I took the driver's name, and cab # and called their office. I threatened to call the Taxi authority and make a complaint. I got my $3.00 refund.
Go ahead; bite off your nose to spite your face with the $3 fee...
It's the Nevader way!
I'm starting an LV planning service and I will recommend that people book a hotel within walking distance to what they want to see and do if at all possible. This is sooooo short sighted. People will use the cabs less and then they don't make as much anymore - this is certainly about additional revenue - not covering the cost of the CC service.
"I had an occasion to take a cab a few months ago. I paid with my CC. The cabbie charged me the fee. There was no sign in the cab about the fee. I took the driver's name, and cab # and called their office. I threatened to call the Taxi authority and make a complaint. I got my $3.00 refund"
Where you sober at the time? I doubt it.
1. The cabbie doesn't charge the fee. It's not at his discretion. The CC terminal automatically adds the $3.
2. The $3 fee is prominently displayed on the screen before the passenger accepts the total charge. If the passenger doesn't want to pay the charge, the CC terminal offers to cancel the transaction.
Someone is taking kickbacks from the cab companies, that's for sure. Why is the monorail not going to the airport and downtown? Just answer that question and the problem with cab companies becomes clear.
Another reason for me to continue taking the free shuttle service provided with the casino I stay at and give the driver a really nice tip for his service! I do not care to be gouged by taking a cab if I can avoid it.
Why would the state be involved in this. This is a business decition. Label the door of the taxi, but the state has no business dictating.
Is this in the guide books? It should be. What a rip off and another black eye on our city.
I think the policy is fine. However, taxi must also carry enough change if the guest is paying in cash.
Seems pretty high. Banks charge less depending on volume. 25 cents per transaction would be more reasonable.
$3.00 per ride? So when the cost of installing the machine is covered will the charge be removed? I doubt it. Passengers will be paying for that machine forever! What a rip-off!
Well this charge should make the shuttle operators happy. This will drive more customers to them. I prefer the shuttle. I'm usually in no hurry to get anywhere when
I
go for pleasure. However, I will take a taxi if I am going for business. I'll get reimbursed regardless. U can't beat
$6.00
I suspect that most people regularly use credit/debit cards, rather than cash, a majority of the time. I certainly do.
I bothers me that there are so many fees attached to the cards' use...fees at ATMs, fees for using an ATM that is not one of your own banks, fees (in the form of higher prices per gallon) for using a card at gas stations, etc., etc.
This practice seems to be "gouging" rather than a legitimate business cost.
Didn't lawmakers address this matter several years ago?
Why is it continuing/getting more prevalent?
I agree with HunterMG, this "surcharge" by the cab cos. will cost the drivers some tips.
@Mr MARK HUNTER.....YOU are an idiot! I have been driving cab in this town for a few years....I have a formal education....I have a Master's Degree....there are SEVERAL of us that have a higher education. In case you haven't been in Las Vegas for a while, have you noticed what the unemployment rate is here? The unemployment crisis didn't hit the poverty stricken or blue collars alone. At least we're NOT collecting unemployment and drawing food stamps! Why don't you come JOIN US??? All companies are hiring...Come put your 12 hours a day/6 days a week in!
MsChaos, you clearly didn't get your master's degree in English. How unfortunate.
The point I was making was that if you don't like what you do, FIND SOMETHING ELSE! I can appreciate the fact that educated people drive a cab. Hell, if ALL of the drivers had PhD's, great! If driving a cab is what makes you happy, then all is well with the world. Employment here is tight? Move! There are always other options.
Oh, and I bet you are accepting applications. I'll have to politely decline though, as my job is recession proof and I ENJOY what I do. Thanks anyway.
Govenor finally signed the bill 6-17. All credit card suppliers's contract/agreement with vendors do not permit fees or surcharges to be applied to a transaction. They will allow a discount for cash just like gas stations do. The law that passed has a provision which prevents CC vendors from prohibiting the taxi company from applying the surcharge. How does State law over rule contract law? I assume the hotels, restaurants and airlines will all want their special law next session to permit them to add surcharges to all their transactions. We were in D.C. last month and took a taxi from train station to hotel. Fare was $5.85 but surcharges were $6.50 and consisted of extra passenger, luggage, fuel, and rush hour fees. We also included our tip in those fees and told the driver. The final bill excluded the provision where the taxi cab companies would provide a million dollars for the Senior Ride Progarm. Isn't that nice?