NYC cabs could offer better customer service with new credit card processing

A change up in taxi cab payment processing vendors could provide better customer service to drivers and riders

A change up in taxi cab payment processing vendors could provide better customer service to drivers and riders. The New York City Taxi and Limousine Commission recently approved a pilot program that will allow payment processing competitors to install equipment into cabs for credit card transactions.

"We're really looking forward to seeing some very innovative alternate payment solutions," Taxi Commissioner David Yassky told The Wall Street Journal.

The Taxi Workers Alliance backed Square, hoping to break up the monopoly that two vendors - CMT and Verifone -  currently have on card transactions made in cabs. The companies have been charging steep fees - 3.5 percent of credit card payments - that cut into drivers' commissions to cover processing fees. Allowing competitors to move in with new products could bring those fees down.

Yet drivers may also benefit from better customer satisfaction and loyalty as a result of the new payment devices. Some of which are coming in the popular form of an iPad. Square's program is offering cardholders a variety of perks that could make public transportation a little more enjoyable, such as playing Angry Birds, listening to music and monitoring the trip on a map, the source reports.