Many taxi drivers prefer cash because card payments cost them money and depend on equipment that can fail. Processing fees come out of every fare, and a dead reader or a weak data signal can hold up the end of a trip.
Cash is simple. There is no terminal to malfunction and no processing charge, and no payment network can go down. The driver is paid on the spot, and the trip ends without waiting for an approval to come through. That matters in busy hours, when a quick turnaround means the next fare starts sooner.
Fees on card payments
Payment processors charge a percentage of each transaction, and some add a fixed amount on top. As examples, Square lists 2.5% for credit cards that are tapped, inserted or swiped in person in Canada, and 0.75% plus 7 cents for in person debit. Stripe lists 2.9% plus 30 cents for domestic cards. Rates differ by provider and by plan, so a driver or fleet owner can pay more or less than these figures.
On a short fare the fixed part of a fee takes a bigger bite, and on a busy shift with many fares the total adds up. Some drivers and companies respond by asking for cash on short trips or by passing costs on in other ways, which riders do not always like.
Contracts and extra charges
Processors can also have monthly fees, equipment costs or charges for cancelling early. Anyone setting up card acceptance for a cab should ask for the full fee schedule in writing before signing. Unpredictable costs make income harder to plan, which puts some drivers off card options.
Practical reasons drivers like cash
Cash keeps the day simpler. A driver does not need a working terminal, a charged device or a data connection, and passengers are not left waiting while a reader reconnects.
Clear earnings
Cash in hand shows what was earned during the shift. Card fares arrive later, and the driver or the company has to reconcile them against the trip record. For owner operators that extra paperwork is one more reason to like cash.
Fewer disruptions
Equipment failures and dropped signals are the main complaints. When a reader fails, the driver either loses the fare or waits while the passenger finds another way to pay. Cash has no downtime.
What riders can do
If you prefer to pay by card, ask when you book or before the trip starts whether the cab takes cards and whether any fee applies. Carrying a little cash as a backup avoids an awkward moment at the end of the ride.