We thank Mr Koh Kah Yeok for his feedback (High electronic payment surcharges work against S'pore's cashless ideal; Jan 12).
Our cabby was correct in informing Mr Koh that a 10 per cent administrative fee is applicable on all credit card payments.
However, he was erroneous in advising that the goods and services tax (GST) was applicable on the entire fare.
The 7 per cent GST is applicable only on the administrative fee.
Had Mr Koh paid by credit card, he would have paid $59.78 for his trip, which includes $5.40 for the administrative fee and 38 cents for the GST.
The 10 per cent administrative fee, which is applicable for credit and corporate card payments, includes merchant fees that go to the banks.
The administrative fee helps to defray the operating costs, including the cost of cashless terminals in all our taxis, and the running cost of the system that are fully borne by the company.
Advance booking fees are also higher, as cabbies may have to forgo fares close to the booking time to ensure that they arrive at the stated time.
Tammy Tan (Ms)
Group Corporate Communications Officer