Cabcharge has been criticised for the 10% surcharge it collects on taxi fares paid by credit and debit cards and for the general anti-competitive control it exerts on other industry participants through its control of electronic payments and other areas of the taxi system such as vehicle and related repairs and installation of in-vehicle equipment, insurance, vehicle leasing and training.
Criticism has emanated from various sources including the chair of the Taxi Industry Inquiry, Professor Allan Fels, the former head of the Australian Competition & Consumer Commission, and leading card companies.
Visa spokesman Adam Wand yesterday said Cabcharge was making taxi passengers pay more than ten times the average merchant fee charged by banks, and five times more than the average fee charged by retailers, based on Reserve Bank data.
Mastercard head of strategy David Masters said there was "no way" that credit-card processing could cost Cabcharge 10 per cent of a fare.
"[10] Victoria legislated in late June 2013[7] to limit the surcharge to 5% or less from 1 February 2014,[11] following recommendations of the Taxi Industry Inquiry.
The Essential Services Commission is required to review the charge, which may lead to the surcharge being reduced below 5%, to reflect Cabcharge's reasonable cost of providing a non-cash payment option in taxis.
Choice states that the competition "recognises and reprimands misleading claims, false advertising, lack of transparency, faulty goods and/or poor service.