On 3 February 2016, the Transport for London (TfL) Board agreed that all taxi drivers must accept credit and debit card payments, including contactless. This followed a public consultation in which 86% of all respondents (and 80% of London's taxi drivers) said they were in favour of card payments in taxis becoming mandatory.
Find out more from the TfL Board papers.
The relevant Cab Order is available:
In response to concerns raised by the trade that card payment system providers need more time to install systems, we have made some changes to the dates by which vehicles owners and drivers will be required to comply.
From 31 October 2016, every driver must accept card and contactless payments and provide receipts for those payments upon request.
This could be a handheld device, mobile solution or device fitted in the passenger compartment of the taxi. As long as the driver can demonstrate the following, they will be permitted to continue working after this date:
TfL radio adverts promoting the acceptance of card and contactless acceptance in taxis will launch on 31 October, so it is very important to comply with the above points by that date.
By 1 January, all taxis must have an approved card payment device fitted within the passenger compartment. Any taxi found not to meet the requirement by this date will be issued with an unfit notice, which will remain in place until the requirement is fulfilled and the vehicle is presented for inspection.
To date we have 12 card payment providers with approved systems that meet the new card payment requirements. TfL is working with suppliers to ensure they are prepared. The list of TfL approved card payment devices and systems is as follows:
|Cab:app Ltd||Miura M010|
|Cabvision Network Ltd||Ingenico IPP220|
|CMT UK Ltd||CMT FREEdom Solution|
|Farepay Ltd||Miura M010|
|Taxiworld Ltd||Taxiworld FREEdom Solution|
|The Payment House|
If you have one of the above card payment devices securely fitted within the passenger compartment, the taxi will remain compliant. If you have an approved device that is not fixed in the passenger compartment, it will need to be by no later than 1 January 2017.
If you have one of the above (handheld) payment devices, please contact your payment provider to arrange to have a cradle solution fitted within the passenger compartment before 1 January 2017, in order for your taxi to remain compliant. Note that their cradle systems will allow the driver to remove the handheld payment device when they are not working, should they want to do so.
If you do not currently have a card payment system at all, please research which of the approved providers offers the best solution for you, and ensure you have evidence, by 31 October, that you have a booking for one to be fitted by no later than 1 January 2017.
If you know of a card payment device that has not been approved by TfL, but which you would like to use, please encourage your provider to contact TfL as it may be possible for us to approve their device.
We have received some requests for exemptions from various aspects of the card mandate, including the requirement that a card payment terminal must be fitted within the passenger compartment. No such exemptions will be granted.
We have reviewed the existing requirement that taxis must have the facility to offer printed receipts on demand. However, due to the scheme rules of card providers such as Visa and MasterCard, your taxi will be required to have a card payment receipt printer.
Research has also shown that 69% of all taxi passengers said they ask for a receipt for at least some of their journeys and many people do not feel comfortable providing personal details in order to receive an electronic receipt.
Taxi drivers who currently accept card payments must have the facility to offer a printed receipt on demand, in accordance with our Electronic Payment Guidance.
In addition to the signage you will be required to display, the introduction of acceptance of card and contactless payment in all London taxis will be supported by a TfL marketing campaign, which will launch with radio advertising.
This information is also available in TPH notice 13/16.
App-based booking services and online pay services such as HailoPay can still be accepted as payment for taxi fares after the 31 October 2016, when all drivers must demonstrate that they have the ability to accept card and contactless payment. New and existing customers of these services can use the option to pay online regardless of whether their details were registered prior to the implementation of credit card acceptance in all taxis.
We are aware that some taxi drivers have recently experienced issues with PayPal chargebacks. Paypal are aware of the problem that caused some of their customers to mistakenly be held liable for chargebacks on American Express card payments made in London. They have now resolved the issue and have advised any drivers affected to contact PayPal directly. There is also some information about chargebacks on the PayPal website.