City of Alexandria, Virginia
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MEMORANDUM
DATE: MAY 8, 2013
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: RASHAD M. YOUNG, CITY MANAGER /s/
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Second Reading and Final Passage of an Ordinance to Establish a Requirement that Taxicabs Accept Credit Card Payments. [ROLL-CALL VOTE]
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ISSUE: In order to remain competitive and improve customer service and convenience the Alexandria taxicab industry needs to allow customers to pay by credit card. The Traffic and Parking Board recommends requiring that taxicabs accept credit card payment for fares.
RECOMMENDATION: That City Council will pass the ordinance on May 14, 2013 after:
1) First reading on April 9, 2013; and
2) Public hearing and second reading on Saturday, April 13, 2013.
DISCUSSION: On January 22, 2013 City Council directed the Traffic and Parking Board to provide recommendations on Section 9-12-32 of the Code of the City of Alexandria and to propose language requiring taxicabs to accept credit cards. The Traffic and Parking Board held a public hearing on February 25, 2013. At this hearing, nine speakers spoke in favor of requiring drivers to accept credit cards and two speakers were opposed. Opposition was focused on the cost to the drivers.
Staff did research to determine comparable costs of implementing credit card reading equipment in cabs. The typical cost for a backseat credit card swipe device is 1.5% of each transaction if the card reader is leased or approximately $750 if purchased. In addition, there are fees ranging from 2.75% to 7% per transaction depending on the credit card processing fees charged by the credit card processor. The Board makes no specific requirement regarding the type of equipment used to process the credit card charge. The Traffic and Parking Board voted five to one in favor of the credit card requirement and makes the foll...
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