Do Sydney airport taxis take credit cards?

Just wondering if it is really necessary to find an ATM before we leave the airport or if we can use a credit card for the taxi fare to our hotel?

 

Also, I've been reading about no tipping in Australia. Does that fall true in hotels too for the person bringing your bags up to your room (staying at the Hilton)? I'm thrilled not to have to tip in AU/NZ, and plan on following the local customs but I don't want to be rude if it is expected.

We were there last month and the taxi from the airport to the Marriott at Hyde Park on College took our credit card. It was $47 AU. On the way back to the airport from the ship it was a multi-person van and they did not take credit cards. The fare was $14pp.

 

We rarely tipped based on the info here and took our own bags to the room.

Most taxis will take credit cards but if you plan to use your AmEx then ask the driver first as it's not so widely accepted as Visa or Mastercard (this applies in shops and restaurants too).

 

If someone gives you really good service then by all means say "thank you" with a small tip but it's not expected and you won't cause any offence if you don't.

I used KST shuttle service last year (http://www.kst.com.au/) and pre-booked them online with credit card. Service and price were fine.

Also, I've been reading about no tipping in Australia. Does that fall true in hotels too for the person bringing your bags up to your room (staying at the Hilton)? I'm thrilled not to have to tip in AU/NZ, and plan on following the local customs but I don't want to be rude if it is expected.

 

I think a small tip would be appreciated in this situation. Five Star hotel staff are used to lots of foreign visitors including Americans.

Don't worry if you don't though. Nobody is going to scream at you or make you uncomfortable.

 

As a local the only places I tip are in five star hotels and fine dining establishments. The absolute maximum we would tip for excellent service in a restaurant would be 10%. No need to tip in cheap eateries or bars, or for general service. It is common practice to round up taxi fares to the nearest dollar (or two), but not essential.

 

Enjoy your visit.

One thing to be aware of if using a credit card in a taxi is that there will be a 10% surcharge added by the card processing company (known as Cabcharge). It's a bit of a rort - bad enough that Visa refused to be accepted for some time in them, but it is the way it is.

The_Big_M wrote:

"One thing to be aware of if using a credit card in a taxi is that there will be a 10% surcharge added by the card processing company (known as Cabcharge). It's a bit of a rort - bad enough that Visa refused to be accepted for some time in them, but it is the way it is."

 

I think that might be a typo. I might be incorrect but I believe that the surcharge should be only 1%.

Just wondering if it is really necessary to find an ATM before we leave the airport or if we can use a credit card for the taxi fare to our hotel?

You may actually be better off using the ATM at the airport, because they're so conveniently located there. They'll be almost staring you in the face as you exit from Customs. If you wait until after you get to your hotel, you'll then have to go traipsing around looking for the nearest one.

 

10% credit card surcharge sounds right to me, although I've never yet had to use a credit card. See http://wikitravel.org/en/Sydney#By_taxi for another source.

The_Big_M wrote:

"One thing to be aware of if using a credit card in a taxi is that there will be a 10% surcharge added by the card processing company (known as Cabcharge). It's a bit of a rort - bad enough that Visa refused to be accepted for some time in them, but it is the way it is."

 

I think that might be a typo. I might be incorrect but I believe that the surcharge should be only 1%.

 

Nope, no typo. It wouldn't be such a rort if it was only 1%! You can argue what it should be, but the reality is Cabcharge add 10%.

Most taxis will take credit cards but if you plan to use your AmEx then ask the driver first as it's not so widely accepted as Visa or Mastercard (this applies in shops and restaurants too).

 

If someone gives you really good service then by all means say "thank you" with a small tip but it's not expected and you won't cause any offence if you don't.

 

I've read a lot about AMEX not being taken very widely but I just returned from there and in 3 days in Sydney after the cruise I did not find one place that didn't take my AMEX. In fact every were I turned there were ads for AMEX, even david jones now has a AMEX card with there name on it.

 

Now I did encounter a couple of place that wanted to put a 3% surcharge on for using my AMEX, which wasn't so bad since all my visa cards did that automatically when used out of the US. So I used my AMEX exclusively since they didn't charge my 3% for each of my foreign transactions.

True, American Express is pretty reliable for most tourist and retail outlets. Overall, it's distinctly less widely available, but in things that are less likely to affect tourists e.g. paypal, utilities, service providers and smaller businesses.

It wouldn't be such a rort if it was only 1%!

I think "rort" might be putting it a bit high!

 

London cabs also charge 10%, minimum £2.50. The way I look at it is this: If I was genuinely out of cash and had to pay by credit card, would I really begrudge £2.50 for the convenience? I use £2.50, because the reality is that it would always be the minimum fee. I would have bust the minimum on last night's cab fare home (£27), but I think that's the highest fare I've paid for about a year and it only got that high because we were stuck on Tower Bridge when it was lifted.

 

To be honest, though, London cabs are very good at stopping at ATMs on request to allow their passengers to get cash to pay them.

I've read a lot about AMEX not being taken very widely but I just returned from there and in 3 days in Sydney after the cruise I did not find one place that didn't take my AMEX. In fact every were I turned there were ads for AMEX, even david jones now has a AMEX card with there name on it.

 

Now I did encounter a couple of place that wanted to put a 3% surcharge on for using my AMEX, which wasn't so bad since all my visa cards did that automatically when used out of the US. So I used my AMEX exclusively since they didn't charge my 3% for each of my foreign transactions.

 

I also use AMEX because they don't charge the 3% but sometimes I found that the exchange rate was lower on VISA and MC and it became a wash. It's a good idea to find out what exchange rate each is using whenever possible.

London cabs also charge 10%, minimum £2.50. The way I look at it is this: If I was genuinely out of cash and had to pay by credit card, would I really begrudge £2.50 for the convenience?

 

I can understand you valuing the convenience of it, at least in that situation. However, that doesn't justify imo supernormal profits for not doing much in this case beyond being a credit card processor. Even paypal, in its cash cow form for ebay, still hasn't resorted to stinging those paying for the service with such a large fee.

 

The problem is they have such a large proportion of the market that frequent business users accept it, and once you get to that point a new customer has no alternative but to accept in many circumstances.

 

As such, even though cheaper competitors have jumped in to take advantage of the high margins, the end customer is still charged the same amount for those as the competing processors just split the extra margin with the cabbies involved. Nice (non-) work if you can get it...

Edited December 6, 2009 by The_Big_M

However, that doesn't justify imo supernormal profits for not doing much in this case beyond being a credit card processor.

You may have access to more financial information than I do about the taxi credit card operation.

 

But you have to remember that this is a business in which credit card payments are (at least in London) relatively rare. Even when they take place, the amounts involved are small. Yet this has to support a significant data processing and financial transaction infrastructure, which has overhead costs. We're not talking about a shop in which perhaps half or more of your customers will pay by card, and some will spend hundreds or even thousands. (eBay/Paypal is in the latter category, not the former.)

 

Now a 10% surcharge may turn out to be expensive, even given these factors. It's certainly been enough to put me off ever paying a cab fare by credit card, particularly when I can get a cab to stop at an ATM so I can draw cash. But I would be surprised if the charge was so over the top that it deserves to be pilloried as a rort.

In Sydney, Cabcharge started as a significant private business to handle accounts for regular taxi users. As a result they operated their own private card program that handled a large volume of transactions on its own. From that, they expanded to be a credit card processor for individual transactions. They are a listed company if you want to examine their accounts or growth rate for yourself. The driving force is Reg Kernode if you want some other interesting reading.

 

Credit cards are frequently used in local taxis as they are the most convenient for business expenses, plus private users use them as well (as posed here). There is definitely no question that this charge is just covering costs or anything like it – they are making supernormal profits but, aside from having powerful friends, have engendered a situation to maintain that advantage. As said, small competitors have started up taking a small share of volume and are able to do so profitably, but given the nature of the market, just use that profit to share amongst the taxi driver and themselves. There is no commercial benefit to be gained by charging a more realistic price. No passenger will go asking cab drivers how much their credit card surcharge is before riding.

 

Cabcharge operate an effective monopoly and hold pricing power, the details of which are lengthy and not greatly relevant to a discussion on a cruising forum. There have been a number of exposes on a number of their practices which are socially questionable – i.e. purely to their advantage and to the detriment of others. However, just the fact that Visa alone ran a public dispute to challenge the issue shows the significance. Ultimately, it was not resolved either, but public demand caused Visa to capitulate – again demonstrating how significantly credit cards are used in taxis.

 

What they are doing is not illegal, otherwise it would have been shut down long ago, but it is exploiting the system and its users to a one-sided unfair advantage.

Thank you - I will do some research. Obviously, credit cards are used much more in taxis in Sydney than they are here.

We used several taxi's in Sydney while there in November and used our credit card. The only extra charge was when they picked us up from the airport and took us to our hotel the first day we arrived.

We did tip all the cab driver's by just rounding up the amount. One time we did pay cash (australian dollars) and did tip him $5.00 extra. All the cab drivers were very nice and did a good job.

But the only time we were charged extra was from the airport.

Maybe I should go back and check my charges?

There's an additional fee for all taxi pickups at the airport. I can't remember off the top of my head how much it is, but it is charged in addition to the metered fare.

We did tip all the cab driver's by just rounding up the amount. One time we did pay cash (australian dollars) and did tip him $5.00 extra. All the cab drivers were very nice and did a good job.

But the only time we were charged extra was from the airport.

Maybe I should go back and check my charges?

 

Yes, you won't see it on the charge that you signed, you'll only see it on your statement. For example, say the fare was $50, you added a $5 tip, you'd have written $55 as the total. However, when you get your credit card statement you'll see that it has a charge of $61.05 ($55 + 11% for Cabcharge + GST) to Cabcharge (or another broker).

Wow if I had known that I would not have tipped the cab driver:eek::eek::eek:

The distinction is that the credit card fee goes to the credit card processor (often, at least mostly), whereas any tip goes to the cab driver. If you pay in cash, no cabcharge surcharge.

Just regarding tipping - I worked as a waitress/front of house manager through university and I did appreciate tips! Lots of hospitality staff get paid in cash (not taxed, but then under minimum wage) and do rely on tips.

 

If you have received good service then tip! That said, I don't tip if I have to order at the counter, or on take away.

 

10% is a nice tip and really doesn't break the bank! :D

Oops, here in Sydney that is.

I've read a lot about AMEX not being taken very widely but I just returned from there and in 3 days in Sydney after the cruise I did not find one place that didn't take my AMEX. In fact every were I turned there were ads for AMEX, even david jones now has a AMEX card with there name on it.

 

Now I did encounter a couple of place that wanted to put a 3% surcharge on for using my AMEX, which wasn't so bad since all my visa cards did that automatically when used out of the US. So I used my AMEX exclusively since they didn't charge my 3% for each of my foreign transactions.

 

And that is for taxis too???