Using credit cards for cabs?

According to the Boston Globe, more than 1 of every 4 Boston taxi passengers now pays by credit card, an option that has made cabs more attractive to riders but provoked tension among drivers, passengers, and city regulators.

What’s got the cab drivers riled up is the combination of fees that they are charged for each credit card transaction, plus another fee to withdraw their earnings from an account. Between the two fees, a twelve hour shift may not equate to even minimum wage after all their expenses are paid.

But when I saw the article, I was thinking more from the passenger’s perspective. As a bankruptcy attorney, I was amazed so many people are using cards to pay for a routine service like a cab ride. I know these cards are most likely not paid off in full every month meaning high interest gets applied to the already high cab meter rates. It is just this kind of here-and-there impulsive spending that often adds up to a bankruptcy in the long run. I don’t think credit cards belong in cabs; pay cash or walk or take a bus!

 

By Doug Beaton

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