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Committee urges SFMTA to reconsider waiver permitting 5% credit‑card charge to drivers; MTA reviewing policy
Summary
After hours of public testimony from drivers, companies, unions and advocates, the committee voted to recommend that the SFMTA reconsider its decision to allow taxi companies to pass a 5% merchant-processing charge to drivers. The MTA said it is re-evaluating the policy and has retained a consultant.
The Government Audit and Oversight Committee voted Oct. 25 to forward a resolution with a positive recommendation urging the San Francisco Municipal Transportation Agency (SFMTA) to reconsider a recent waiver allowing taxi companies to pass a 5% credit‑card merchant-processing charge onto drivers.
Chair David Campos introduced the measure, noting it asks the SFMTA to revisit whether the policy fairly burdens drivers and preserves the customer experience. The committee heard more than two hours of public testimony from drivers, medallion holders, company managers, labor representatives and worker‑rights advocates.
Driver groups, United Taxicab Workers and individual drivers told the committee the 5% charge — which some speakers said includes processing, equipment and reporting costs — can reduce take-home pay by $1,000–$2,000 annually and encourage drivers to decline credit cards. "This is costing full-time drivers $1,000 to $2,000 a year," Mark Gruberg of United Taxicab Workers said. Legal and advocacy groups raised concerns about potential labor-law consequences for drivers and alleged company practices such as opening merchant accounts in drivers' names without clear consent; the Asian Law Caucus urged the MTA to withdraw the waiver and revisit the policy.
Taxi company managers and medallion holders defended the change, saying credit‑card processing and new data/communications requirements (electronic waybills, rear‑seat terminals, 1099 reporting) produce substantial back‑office costs and that a third‑party processor assumed much of the upfront equipment expense. Several company representatives said alternative merchant solutions exist (for example, Square at roughly 2.75%) and that driver choice is possible, but that a uniform, fleet‑wide solution improves acceptance and passenger convenience.
SFMTA Deputy Director for Taxi Services Chris Hayashi told the committee the agency has retained a consultant (Nelson ygaard) to analyze the issue, has increased field presence to enforce credit‑card acceptance, and expects a consultant report soon. After deliberation, the committee voted by roll call to forward the resolution with a positive recommendation to the full Board (President David Chu — aye; Supervisor Mark Farrell — no; Chair David Campos — aye).
Next steps: the committee's positive recommendation will be transmitted to the full Board of Supervisors; the SFMTA review and consultant report noted by agency staff are expected to inform any further Board action.
