In May, I took a taxi to Changi Airport and paid for my fare by credit card.

I was glad I asked the driver for a receipt. That was how I discovered that there was a 10 per cent levy — which came to nearly S$5 — on the credit card transaction. 

Who pockets the levy — the taxi company, the credit card firm or the bank? 

Regardless, why have the Land Transport Authority and Monetary Authority of Singapore not intervened?

Contactless payments benefit taxi drivers, passengers and other road users. The transaction generally takes less time, so that taxis dropping off passengers do not hold up traffic longer than necessary. It is safer for taxi drivers because they will not have to keep so much cash on them. 

It is unusual that the taxi driver did not warn me of the surcharge.

The surcharge contradicts the Government’s push to go cashless.

Whether the Government succeeds in this endeavour is of little concern to me. The point is whether consumers’ interests are sufficiently safeguarded.

It would be convenient for the authorities to wave away the issue by saying that it is a commercial decision or that over-regulation is unhealthy. Yet that would be irresponsible.

I understand that the credit card companies have come out against surcharges before — Visa, in fact, severed ties with two taxi operators here in 2013 after they refused to remove a 10 per cent surcharge on card payments.

What this shows is that businesses are free to shift the burden to customers. The Government can do more to protect passengers and drivers. 

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