Visa score own goal with Singapore taxi card ban

Singapore’s taxi’s have something new to complain about. Visa. The company have banned the payment method from all Singapore cabs. Is this just a PR stunt from Visa or a serious play to be the people’s champion?

Why have Singapore’s cabs been banned by Visa? Visa wish to have their transactional charges included in the taxi fare. Taxi companies, understandably, wish to pass on this charge to the consumer.

If you want to pay for a fare with a credit card why should you pay the same as someone paying in cash when there is a direct cost to the taxi company for doing so when there isn't for paying cash.

Visa however thinks that the cab companies should suck it up and not charge the customer any more than if they paid by by cash or EZ link.

So now when you board a Singapore taxi there are signs saying Visa no longer accepted which doesn't look good when you see all those shiny, annoying Visa pay-wave cinema adverts... now you just think "yeah that works in the American supermarket that the advert was clearly filmed in (no Asians in sight) but not in a cab in Singapore where the advert is playing!!!

There are also now signs on every cab without any Visa logos on but with massive Mastercard ones on instead. This is a double whammy for Visa...Visa looks like the bad guys and MasterCard looks like the good guys! Business as usual and picking up for them! Mastercard are even running a campaign at the moment for a free coffee if you pay by Mastercard to capitalise on Visa's mistake.

All the other credit, bank and payment cards are still accepted by the taxi companies so the consumer still has a wide choice. Ironically only 1% of all cab transactions are with Visa anyway and most of them are from tourists so who are they hurting? Not locals and not the frequent customer. Is it worth the hassle?

Many people on social networks have condemned Visa for the inconvenience and hypocrisy. After all they have been allowing cab companies and everyone else to charge surcharges on top of published prices since the 1990’s without much of a protest.

It is not illegal in Singapore so why would a company absorb this cost when it directly affects their bottom line? Visa are having it both ways and engaging in double standards.

Seems that Visa want it both ways. Trying to play people’s champion while also getting their fee. If Visa felt genuinely passionate about this wouldn’t they abolish the fee that they charge merchants or at least discount it to make the point? But they haven’t suggested this they just expect Cab companies to take the hit. Why would they?

Would Visa take the financial hit, (2.5% direct to the botom line revenues), if the tables were turned? What about if taxi companies said that they were going to create a new charge for each credit card transaction and bill the credit card company for this?

They could justify it by saying that on the basis that the cab drivers hate processing credit card transations and it takes them more time to process it so they lose time on the road which leads to loss of $. Would Visa like that? No of course they wouldn't. So why do they expect the cab companies to?

What also seems like wanting to have it both ways is that Visa have not cut ties with retailers or restaurants or travel brands where the majority of spending on Visa happens in Singapore.

Surely if they felt this strongly about the transactional fee being added to people's bills they would ban ALL merchants who imposed a transaction fee on the consumer on top of the purchase price rather than absorbing it not just cab companies?

Visa are really picking on one sector of one industry to make a point but it looks more likely corporate bullying than being the people’s champion.

Negative PR and inconvenience is what they are generating and they haven't explained their story to the Singapore public in positive or effective way at all so there is no well oy sympathy for them in fact the opposite is true.  

This feels like a PR stunt gone wrong that will have zero affect on cab custom or surcharges. You can still pay with Amex, Diners, MasterCard, NETS, Union Pay, EZ Link and good old fashion cash!!

If Visa wanted to be taken seriously they should stop picking on taxis (which they have clearly looked at because of the lack of business they do with them anyway) and roll out the policy for every merchant in Singapore…but what’s the bet that they won’t do that?

Have Visa heard the phrase “putting your money where your mouth is”? Every merchant or no merchant. Show us your money Visa!