The taxi 10% surcharge on plastic was only ever meant to be a temporary measure to offset the cost of installing EFTPOS terminals ahead of the Sydney Olympics. On behalf of their customers Visa refused and so were banned from taxi payments until they eventually capitulated.
However the surcharge proved very lucrative for the taxi networks and was retained as it served to gobble up the tips to drivers. Why should customers tip after being slugged 10%. All thanks to notorious taxi boss and king maker Reg Kermode and his ability to manipulate premiers and policy.
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