The surcharge applies when a taxi passenger pays for a fare using non-cash payment transaction options, including credit, debit and charge card.
Taxi non-cash payment surcharge review 2019
Consultation paper10 December 2018
Draft decision30 May 2019
Release further draft decision11 November 2019
Final decision24 March 2020
Amendment3 June 2020
Further Amendment8 September 2020
Changes in effect1 February 2021
We set the maximum taxi non-cash payment surcharge in Victoria. The surcharge applies when a taxi passenger pays for a fare using non-cash payment transaction options, including credit, debit and charge card.
Our final decision is to have two maximum surcharges
We will set the maximum surcharge at four per cent
The maximum surcharge will be four per cent for most non-cash payment methods. However, for Cabcharge payment instruments the maximum surcharge will be six per cent.
Our benchmarking and bottom-up cost assessment suggest that these amounts are enough for taxi payment processors to recover reasonable costs.
Most passengers will pay less when making non-cash payments as a result of this decision.
We will provide a transition period
To give the industry time to implement our decision the new maximum surcharges will come into effect from 1 February 2021. Until that time the current maximum surcharge of five per cent will apply.
Originally our final decision was for the changes to come into effect from 1 July 2020. Following further investigation of the effect of the coronavirus pandemic on taxi payment processors we extended the implementation date to 1 October 2020.
It has become apparent to the commission that even more time is required to update payment terminals as a result of the coronavirus pandemic, in particular, the stage four lockdown restrictions. Our review indicates that providing non-cash payment transaction industry until 1 February 2021 to update their payment terminals would best meet the commission's legislative objectives and requirements.
View our final decision
Read our media release
Taxi Non-Cash Payment Surcharge Review 2019: Final decision
Taxi Non-Cash Payment Surcharge Review 2019: Further Draft Decision
Submissions on the further draft decision
Taxi Non-Cash Payment Surcharge Review 2019: Draft Decision
Submissions on the draft decision
We sought information from a number of payment processors so we could better understand the reasonable cost of accepting and processing non-cash payment transactions in taxis.