Mar. 18, 2010: Credit cards and taxi cabs

>> WHEN THE CITY OF BOSTON
MANDATED THAT ALL TAXI CABS
INSTALL SELF-SERVICE CREDIT
CARD MACHINES TARTING IN
2009 IT SEEMED LIKE A GOOD
IDEA.
WORK CONVENIENT FOR
CUSTOMERS, MORE BUSINESS FOR
THE DRIVERS.
BUT AS IT TURNS OUT, NOT
EVERYONE IS THRILLED WITH
THE NEW ARRANGEMENT.
>> Rooney: IT'S NOT THE
CREDIT CARDS THEMSELVES THAT
BUG CABBIE, IT IS THE
HEADACHES THAT COME WHEN
RIDERS PAY WITH PLASTIC.
>> DURING THE DAYTIME YOU
MAY HAVE 20, 30 TAIR FARES
AND ALL OF THEM CREDIT CARD.
AT THE END OF YOUR SHIFT YOU
WON'T BE ABLE TO PUT ANY GAS
IN THE CAR.
YOU WON'T BE ABLE TO GO TO
THE RESTAURANT AND BUY A
LUNCH.
SO THAT'S NOT FAIR.
>> Rooney: SOME DRIVERS HAVE
TO WAIT AS LONG AS THREE
DAYS TO ACCESS CREDIT CARD
FARES.
AND WHEN THEY FINALLY GET
THEIR MONEY THE WITHDRAWAL
FEE CAN BE AS MUCH AS 6%.
>> WE WOULDN'T HAVE ANY
PROBLEM TACKING THE CREDIT
CARDS IF THEY WAIVE ALL THE
CHARGES.
>> Rooney: BUT ACCORDING TO
TOP CAB OWNER JOHN FORDE IT
IS SHORT-SIGHTED BECAUSE
SINCE THE CREDIT CARD
MANDATE WENT INTO AFFECT,
BUSINESS IS BOOMING.
>> ONCE THE DRIVERS BECOME
MORE ACCLI MATED I THINK
THEY WILL LIKE THE SYSTEM.
>> Rooney: THAT MAY TAKE
AWHILE.
THIS WOMAN SAID SHE HAS HAD
DRIVERS CLAIM MACHINE
MALFUNCTION IN HOPES OF
GETTING SOME COLD HARD CASH.
>> CABDRIVERS THEY SAY WON'T
WORK, SO THEY THEN DRIVE TO
YOU AN ATM OR SOMETHING.
SO YOU HAVE TO TAKE THE
MONEY OUT.
>> Rooney: OF COURSE THEY
COULD BE TELLING THE TRUTH.
>> I DON'T THINK THEY ARE.
BECAUSE IT HAS HAPPENED
WHERE I AM LIKE I DON'T HAVE
CASH.
AND THEN THEY CLICK ON A
BUTTON AND IT WORKS.
>> Rooney: THE OCCASIONAL
DDS DRIVER ASIDE, THIS
VISITOR FROM SACRAMENTO
WHERE TAXIS DON'T TAKE
PLASTIC SAYS THE CREDIT CARD
OPTION IS ONE OF BOSTON'S
MANY CHARMS.
>> WHEN WE GOT INTO A CAB I
THOUGHT WHAT A GREAT IDEA.
YOU JUMP IN, YOU MAY NOT
ALWAYS HAVE THE CAB FARE,
YOU KNOW, THE CASH ON HAND.
SWIPE THE CARD, GIVE THE GUY
A TIB, CALL IT GOOD.
>> Rooney: THE BOSTON CITY
COUNCIL PLANS TO TACKLE THE
RULES AND REGULATIONS
SURROUNDING TAXI CREDIT CARD
USE AT AN UPCOMING HEARING.
BUT GIVEN THE YOU BEIC WIT
OF CREDIT CARDS THESE DAYS,
CASH ONLY TAXIS PROBABLY
WON'T BE MAKING A COMEBACK.
>> Rooney: JOINING ME IS
BOSTON CITY COUNCILER
MAUREEN FEENEY, ANDREW
HEBERT, THE MANAGER OF USA
TAXI AND AN DRIVER ARTHUR
ROSE, WELCOME TO ALL OF YOU.
>> GOOD TO BE HERE.
>> THANK YOU VERY MUCH.
>> Rooney: THIS DOES SEEM
LIKE A CONVENIENCE AND A
GOOD IDEA AND BUSINESS IS UP
AND ALSO IT IS, YOU KNOW,
CABDRIVERS ARE OFTEN THE
TARGETS OF MUGGINGS AND
ROBBEREES.
AND IT SEEMS LIKE A GOOD
IDEA IS IT THE FEES,
PRIMARILY, MAUREEN THAT IS
THE ISSUE.
>> YOU KNOW, IT'S THE FEES.
IT'S THE MALFUNCTIONING OF
THE MACHINES THEMSELVES.
>> Rooney: WHO IS MAKING
THEM MALFUNCTION?
>> YOU KNOW, I THINK, WELL
VERY OFTEN WE DO HAVE DEAD
SPOTS IN THE CITY.
THE OTHER PROBLEM THAT WE
HAVE IS 9 DELAY IN BEING
ABLE TO YOU KNOW RECOVER
THEIR MONEY.
THEY HAVE TO WAIT AT LEAST
TWO DAYS.
SO IT MAKES IT-- IT'S
CHALLENGING.
AND IT IS A TREMENDOUS
SERVICE TO THE PEOPLE, TO
THE PASSENGERS.
WE THINK IT'S A GREAT IDEA.
BUT WE WISH THAT THERE JUST
WASN'T SUCH A COST TO THE
DRIVER.
>> Rooney: WELL, ANDREW, ON
THE ISSUE WHERE YOU-- ON THE
ISSUE OF ARE YOU ALWAYS
BEHIND, BUT AT SOME POINT
YOU CATCH UP THAT IS LIKE
WAITING TWO WEEKS FOR YOUR
PAYCHECK T JUST KIND OF THE
SYSTEM.
AND YOU FOE, IF THURSDAY ARE
YOU GETTING MONDAY'S MONEY
THEN TUESDAY, SO AT SOME
POINT DOESN'T IT ALL JUST
KICK IN AND EVEN OUT?
>> WELL, I WOULD HAVE TO SAY
IT IS A LEARNING PROCESS.
AND YOU HAVE TO UNDERSTAND
THAT THE TAXI INDUSTRY SINCE
ITS INCEPTION HAS ALWAYS
BEEN A CASH BUSINESS.
AND A LOT OF THE DRIVERS IN
THE INDUSTRY, THEY
LIVE-- THEY DON'T MAKE A
LARGE AMOUNTS OF MONEY.
SOME OF THEM ARE MINIMUM
WAGE.
AND SO THEY DON'T HAVE AN
EXCESS OF CASH ON HAND.
IT SEEMS THAT WHAT I HAVE
NOTICED IS THAT DRIVERS ARE
BECOMING MORE ACCLIMATING TO
THE USE OF THE CARDS AND
BETTER PLANNING THEIR MONEY.
BUT WHEN THE SYSTEM WAS
FIRST IMPLEMENTED, IT WAS
VERY DIFFICULT FOR THEM.
AND A LOT OF TIME THESE
WOULD COME IN AND THEY
COULDN'T PAY FOR THEIR CABS
BECAUSE THEY JUST DIDN'T
HAVE THE MONEY.
THAT STILL OCCURS BUT NOT AS
MUCH.
>> Rooney: ARTHUR, ONE OF
THE ISSUES THAT HAS COME UP
IS THE CABDRIVERS ARE
PROTESTING THIS BECAUSE IT
IS A CASH BUSINESS AND THEY
DON'T WANT TO REPORT ALL THE
CASH.
AND IF YOU ARE DOING IT BY
CREDIT CARD IT IS MUCH MORE
TRACEABLE, IT'S EASIER FOR
THE IRS, FOR INSTANCE, TO
KNOW EXACTLY HOW MUCH YOU
MAKE.
IS THAT PART OF IT.
>> NO, EMILY, ACTUALLY ALL
THE TRANSACTIONS YOU MAKE ON
THAT METER IS YOU KNOW, THEY
KNOW, THEY KNOW EVERYTHING
THAT GOES ON.
>> Rooney: NOT THE TIPS.
>> THE TIPS, WELL, NOT THE
TIPS BUT EVERYTHING THAT
GOES ON THE METER.
>> Rooney: I KNOW YOU ABOUT
I TIP ON A CREDIT CARD SAY
TIP AND THEN IT IS RECORDED.
AND IT IS NOT RECORDED --
>> THE PROBLEM THAT DRIVERS
HAVE IS YOU HAVE EYE 6%
INITIAL FEE THAT COMES OUT
OF YOUR POCKET.
PLUS AN ATM FEE THAT THEY
SET UP WITH BANK OF AMERICA,
WITHOUT EVEN ASKING US IF
THEY WANTED TO DO TELEPHONE.
AND THEN THE SWIPE.
>> Rooney: YOU CAN GET THAT
WAIVED, CAN'T YOU, FROM THE
BANK OF AMERICA.
>> NO.
>> Rooney: IS THAT THAT
RADIO ASSOCIATION.
>> THIS WAS IN THE A CHOICE.
AND THE RADIO ASSOCIATION
NOW HAVE REGULATORY POWER
OVER THE TAXI INDUSTRY.
>> Rooney: UH-HUH.
>> THEY CAN FLIP A SWITCH IN
THE RADIO ROOM AND SHUT OFF
YOUR CREDIT CARD SYSTEM,
YOUR RADIO, AND YOUR METER.
AN THEY'VE BEEN DOING THIS.
>> Rooney: WHY WOULD THEY DO
IT?
>> BECAUSE YOU ARE FORCED
UNDER THE NEW RULES TO JOIN
THE RADIO ASSOCIATION.
AND ONCE YOU WERE FORCED TO,
THEY DOUBLED OR TRIPLED
THEIR FEES.
THEY WENT FROM $30 A WEEK TO
UP TO $90 A WEEK.
THAT COMES DIRECTLY OUT OF
YOUR POCKET.
AND THEY SAY IF YOU DON'T
LIKES IT, WE'LL FLIP THE
SWITCH.
>> Rooney: WHAT DO YOU GET
OUT OF IT FOR BEING A MEMBER
OF THAT ASSOCIATION?
>> YOU COULD GET A RADIO
CALL, IF YOU WORK THE RADIO.
>> Rooney: I SEE.
>> BUT THE BOSTON POLICE
DEPARTMENT HAS DECIDED THAT
WILL YOU JOIN WHETHER YOU
LIKE IT OR NOT.
AND IF YOU DON'T JOIN, WE'LL
TAKE AWAY YOUR LICENCE.
>> Rooney: THAT SEEMS LIKE A
BIGGER ISSUE TO ME.
>> ANOTHER DRAWBACK TO THIS
IS IF YOUR MACHINE FAILS,
YOU CANNOT PICK UP ANY
PASSENGERS, SO YOUR SHIFT IS
DONE.
AND THAT I THINK IS VERY,
VERY CHALLENGING.
SO THE PURPOSE OF THE
UPCOMING HEARING THAT WE'LL
HAVE IS REALLY TO NOW THAT
THIS HAS BEEN IMPLEMENTED,
LET'S PUT ALL THE ISSUES ON
THE TABLE.
LET'S LOOK AT WHAT IS
WORKING, WHAT'S NOT WORKING.
AND SEE IF IN FACT WE CAN
COME UP WITH A BETTER
METHODOLOGY TO KEEP THIS
PROGRAM MOVING.
>> Rooney: BUT ANDREW AS YOU
SAID A MINUTE AGO, THE
INDUSTRY WAS TRADITIONALLY A
CASH BUSINESS.
THERE IS PROBABLY A FAIR
NUMBER OF CABDRIVERS THAT
DON'T EVEN HAVE A BANK
ACCOUNT.
>> THAT VERY TRUE, THAT VERY
TRUE.
>> Rooney: AND THEY HAVE TO
SET ONE UP AND THEY MAY NOT
HAVE-- WHO KNOWS WHAT THEIR
STATUS IS, ALL KINDS OF
THINGS.
THEY HAVE IMMIGRANT STATUS
ISSUES.
THEY DON'T, THEY DON'T
QUALIFY FOR THAT.
>> WELL, YOU KNOW, THAT'S A
SMALL PART.
THESE-- THE EQUIP SUSPECT
BEING USED.
IT'S A COMPLEX SYSTEM IT IS
NOT JUST CREDIT CARD
PROCESSING EQUIPMENT.
IT'S ALSO DIGITAL DISPATCH
EQUIPMENT.
IT'S ALL INTEGRATED INTO ONE
UNIT AND IT'S ALSO A GPS
TRACKING SYSTEM.
WHEREBY THE POLICE
DEPARTMENT AT ANY TIME CAN
LOOK AT ANY TAXI IN THE CITY
AND KNOW EXACTLY WHERE THEY
ARE 24/7.
>> Rooney: ISN'T THAT A GOOD
THING?
>> WELL, IT IS FOR THE
POLICE DEPARTMENT IN THAT
THEY, IT HELPS THEM SURVEIL
THE INDUSTRY IF, YOU WILL.
>> Rooney: ISN'T IT GOOD FOR
YOU IN TERMS OF SAFETY AS
WELL?
>> WELL, IT CAN BE IF A
DRIVER IS IN TROUBLE AND
THEY NEED TO KNOW WHERE HE
IS, THEY CAN FIND HIM REALLY
QUICK, YES.
SO THERE IS A SAFETY
COMPONENT TO THAT.
THE OTHER COMPONENT IS THAT
THE POLICE DEPARTMENT HAS
THE ABILITY TO LOOK AT WHAT
EVERY METER IN THE CITY DOES,
24/7.
SO YOU CAN LOOK AT ANY
MEDALLION AND SAY THIS
MEDALLION MADE THIS AMOUNT
OF MONEY ON ANY GIVEN DAY.
SO IT IS-- THE GPS TRACKING,
IT DOESN'T ALLOW DRIVERS TO
FIND LOCATIONS.
IT'S STRICTLY A MONITORING
SYSTEM.
>> Rooney: SURVEILLANCE.
>> WELL, THERE IS THAT
ELEMENT TO IT.
AND IN NEW YORK IT WAS
CHALLENGED ON THOUGH THOSE
GROUNDS.
WHICH MAINTAIN THAT IT WAS
AN INVASION OF PRIVACY AND
THEY LOST YOUR INITIAL COURT
CHALLENGE TO THAT DOWN
THERE.
AND THEY HAVE A SIMILAR
SYSTEM.
>> Rooney: I'M CURIOUS,
GIVEN THE FACT THAT THE
CREDIT CARD SYSTEM IS
UNLIKELY TO GO AWAY ONCE IT
HAS BEEN IMPLEMENTED WHAT
WOULD YOU LIKE TO SEE
HAPPEN.
>> WE WANT TO SEE THE SYSTEM
FIXED.
AND WE DON'T WANT TO
SEE-- THERE ARE DEAD SPOTS
ALL OVER THE CITY.
WHEN THE GPS DOESN'T WORK
THE STATE POLICE AT LOGAN
AIRPORT ARE SAYING WELL, WE
COULDN'T TRACK YOU SO YOU
ARE OUT OF WORK FOR A WEEK.
WE SUSPENDED YOUR LICENCE
FOR A WEEK FOR A GPS
VIOLATION.
THAT THERE IS NOTHING AT ALL
TO DO WITH THE DRIVER.
AND WE WANT TO SEE THE
REGULATORY POWER-- .
>> Rooney: ARE YOU
SUGGESTING IT THAT YOU
SOMEHOW DID DISENGAGING THE
MACHINE.
>> RIGHT WORKS EVEN
CHECKING.
THEY SAID THE GPS DIDN'T
WORK, ARE YOU OUT OF WORK,
PERIOD.
AND REGULATORY POWERS HAVE
BEEN RESERVED TO THE POLICE
COMMISSIONER AND THE POLICE
COMMISSIONER ONLY.
AND WE DON'T WANT TO SEE
SOME DISPATCHER TO SHUT OFF,
FLIP A SWITCH AND PUT A GUY
OUT OF WORK.
>> Rooney: HOW IS THAT
RELATED TO THE CREDIT CARD
ISSUE, IF YOU DON'T MIND.
>> THEY ARE ALL CONNECTED.
>> Rooney: THE GPS YOU NEED
THAT TO RUN THE CREDIT CARD
THROUGH THE SATELLITE.
>> IT IS AN INTEGRATED UNIT.
THE WHOLE SYSTEM IS
INTEGRATED.
IT RUNS ON CELL-PHONE
TECHNOLOGY.
IT'S NOT HARD WIRED.
IT'S NOT LAND-BASED.
SO YOU HAVE TO-- IT USES
CELL TOWERS AND SATELLITE
CONNECTIONS.
AND THERE ARE DEAD ZONES,
THINK ABOUT IT, CABDRIVERS.
>> Rooney: I GOT DEAD ZONES
WITH MY CELL PHONE.
MY APARTMENT.
>> CABDRIVERS ARE HERE,
THERE, AND EVERYWHERE, AND
NATURALLY THEY GOING TO BE
ROAMING THROUGH DEAD ZONES
ALL THE TIME.
AND THERE IS A KNOWN ONE AT
THE AIRPORT.
>> Rooney: THEY MUST HAVE
SOME KIND OF A MEASUREMENT
BY THE STATE POLICE T CAN'T
BE IF YOU ARE A DEAD ZONE
FOR FIVE MINUTES --
>> THIS IS-- ARTHUR IS
REFERRING TO A SPECIFIC
INSTANCE THAT HAPPENED TO
ONE OF MY DRIVERS THIS WEEK.
HE WAS THROWN OUT OF THE
AIRPORT FOR AN ENTIRE WEEK
BECAUSE WHEN HE CAME BACK TO
THE AIRPORT ON WHAT IS KNOWN
AS A SHORT JOB, THEY
COULDN'T SEE WHERE IS
HIS-- THEY A SUM SOED THAT
HE HAD COMMITTED FRAUD
BECAUSE THEY COULDN'T READ
WHERE HIS GPS TRACKING.
AND IT WAS BECAUSE THERE IS
A BAD, THAT IS A POOR SIGNAL
AREA AT LOGAN AS WELL AS THE
CANYONS DOWN IN-- SQUARE
THAT A POOR AREA.
WHAT HAPPENS IS WHEN YOU
CAN'T MAKE THAT CONNECTION,
WHEN YOU CAN'T TRANSFER YOUR
INFORMATION TO THE HOST,
THEN YOU CAN'T COMPLETE THE
TRANSACTION.
AND THAT SETS THE DOOR
FOR-- .
>> Rooney: QUICKLY, WHAT IS
THE CITY COUNCIL GOING TO DO
GIVEN THE FACT THAT BOSTON
MAYOR WAS WILL FULLY BEHIND
THIS?
>> WELL, WE WANT TO SUPPORT
THIS BUT WE NEED TO NOW THAT
IT HAS BEEN IMPLEMENTED
REVISIT IT.
SEE WHERE WE CAN FIX THE
CHALLENGES THAT WE'RE FACED
WITH.
THIS IS A PUBLIC SERVICE.
TO A TOWN THAT VALUES
TOURISM.
>> Rooney: THIS IS REALLY AN
INTERESTING ISSUE.
MAUREEN FEENEY, ANDREW
HEBERT AND ARTHUR ROSE,
THANK YOU SO MUCH.
TOMORROW NIGHT ON BEAT THE
PRESS A RECLUSEIVE ROCK STAR
SUES THE "BOSTON HERALD" FOR
DEFAMATION.
ALSO THE FOX NEWS INTERVIEW
WITH PRESIDENT O BOMBA,
TOUGH REPORTING OR TOO
COMBATIVE.
THAT'S TOMORROW AT 7:00.
COMING UP NEXT, A LIVE
EDITION OF BASIC BLACK AND
HOW THE RIGHT TO LIFE MOVE
SUSPECT REACHING OUT TO
AFRICAN-AMERICANS.
I'M EMILY ROONEY.
GOOD NIGHT.