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 2022
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Consultation Paper22 June 2022
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Consultation closed22 July 2022
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Decision paper7 September 2022
Overview
We are reviewing the current 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.
What we heard in response to our consultation paper
Stakeholders had four-weeks, until 22 July 2022, to make a submission to our consultation paper.
We also met with taxi payment processors to explain our approach to the review.
We received 10 submissions from taxi payment processors, a taxi driver, members of the public and a consumer advocate body.
Feedback covered the following areas:
- the suitability of 2019-20 and 2020-21 data for our review
- the impact of the coronavirus pandemic on taxi demand
- the proportion of cash and non-cash payments made
- the number of terminals in use per taxi
- our treatment of reasonable costs
- the level and structure of current non-cash payment surcharges.
We will use stakeholder’s feedback to inform our decision.
View all submissions in the 'resources' tab of this page.
Consultation paper
Our consultation paper explains our approach and methodology for reviewing the non-cash payment surcharge for 2022.
We will review submissions and issue a decision by 7 September 2022.
We will review 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.
In Victoria there are non-cash payment processors who facilitate the acceptance and processing of non-cash payments.
From 1 February 2021, the maximum non-cash payment surcharge for taxi services in Victoria is:
- four per cent (including GST) for most non-cash payment methods.
- six per cent (excluding GST) for commercial passenger vehicle specific instruments (like Cabcharge).
Our benchmarking and bottom-up cost assessment suggested that these amounts are enough for taxi payment processors to recover reasonable costs.
Most passengers would have paid less when making non-cash payments as a result of this decision.
We will consider reasonable costs
We must ensure that persons facilitating the making of non-cash payment transactions are able to recover the reasonable cost of accepting and processing such transactions.
Reasonable cost includes any fees payable for the acquisition of transactions involving the use of debit, credit or charge cards.