Taxi Lesson 1: Cash or Charge

Two work days, two taxis to the bus, two lessons (at least).  Today’s: If you choose the charge option in the taxi, the driver gets a  smaller tip than if you pay with cash, even though you thought you chose the tip.  The charge machine people and the banks get the difference!

One driver told me that it’s 6% of the total charge for the use of a card, and that it all comes out of his tip.   I can find a few places online that say the same.

I have always thought that the tip calculator in the machine tends us all to higher tips, but not that much higher!