Service fees are charged to recover the reasonable costs of operating the payment services provided in taxis which has high costs and risks. The level of service fees varies across Australia and will be up to 10% (plus GST).
CabFare and Tyro are on record as committed to lower service fees once the RBA provides CabFare and its acquirer Tyro the abilty to process Cabcharge cards. We are waiting for the RBA’s assessment of an application to allow this.
If the application is approved by the RBA, competition will enable cheaper and more secure payments in taxis. We have made this clear to the RBA and all State Governments.