No Visa cards for ComfortDelGro cabs from 15-Jul-13

SINGAPORE — From Monday, commuters will no longer be able to use their Visa cards to pay for rides in ComfortDelGro taxis. In an email to its cabbies, the taxi operator said it was informed by Visa that it can no longer charge an administrative fee.

Those who use credit and debit cards now pay 10 per cent extra, excluding goods and services tax. This, however, is a breach of contract terms, said Visa, which issued an ultimatum to Singapore’s largest taxi operator to stop the surcharge, saying it would pull out otherwise.

ComfortDelGro told its cabbies that the fee is needed to invest in and maintain payment terminals and systems, as well as to pay bank fees and telco charges. It is also meant as compensation for drivers before they receive bank payments on the next working day.

The operator said it will replace the fleet’s cashless window decal in the coming weeks and a placard will be issued to inform passengers of the changes. Visa had previously said only 1 per cent of rides in the operator’s taxis are paid for with its cards.

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