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Credit card machines fail under fire

By Ryan Chatelain, amNewYork Associate Editor | ryan.chatelain@am-ny.com

October 23, 2007

Hacks might have good reason to worry about clunky credit card machines that could cut into their profits, amNewYork recently learned by taking a few cab rides around the city.

During three trips in taxis equipped with the new GPS technology, we twice encountered problems in trying to pay by credit card.

After one ride, we swiped our card and waited about a minute -- as impatient drivers behind our cab on Ninth Avenue blared their horns -- only to be told by the cabby that the payment didn't go through.

After a second swipe -- and more waiting -- he showed us the error message: "Not responding." We paid with cash.

On an earlier trip, it also took two swipes and more than a minute of waiting before we successfully paid.

One complaint by cabbies about the GPS technology, which offer riders the option to pay by credit card, is that they face being ticketed by police for blocking traffic while processing payments.

Another has to do with the bottom line. The machines charge a 5 percent processing fee, which some cabbies say is eating into their profits.

The Taxi & Limousine Commission has said the machines will only make life easier for drivers, and informal reviews have shown that some passengers are inclined to give bigger tips when paying by credit card.

The machines need to be installed in all cabs by early next year.