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If you are paying cash, a 20% tip for good service is customary. If you are paying by credit card, especially for small fares, 25% to 30% should be given, as cab drivers are forced to pay the credit card fees themselves, and it costs them a significant amount of their income (about 10% of their tips).

In fact, in the early days of credit card machines in cabs, virtually every driver would lie and tell you the credit card machine was broken. To pay with a credit card, you had to tell them, "Look, I know the machine isn't really broken. I promise to give you a really big tip if you let me pay by credit card."

Credit card processing fees are why lots of businesses have a credit card minimum of $10 to $20. The fees cost them so much that taking credit cards for small purchases just isn't worth it.

Cab drivers, unfortunately, are not allowed to have credit card minimums.

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14y ago

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