Three decades of innovation in the taxi industry
Taximeter
From Wikipedia, the free encyclopedia
A taximeter is a mechanical or electronic device installed in taxicabs and auto rickshaws that calculates passenger fares based on a combination of distance travelled and waiting time. It is the shortened form of this word that gives the "taxi" its name.
[edit]
History
The modern taximeter was invented by German Wilhelm Bruhn in 1891, and the Daimler Victoria—the world's first meter-equipped (and gasoline-powered) taxicab—was built by Gottlieb Daimler in 1897.
Taximeters were originally mechanical and mounted outside the cab, above the driver's side front wheel. Meters were soon relocated inside the taxi, and in the 1980s electronic meters were introduced, doing away with the once-familiar ticking sound of the meter's timing mechanism.
In some locations, taxicabs display a small illuminated sign indicating if they are free. In Argentina, this sign is called a "banderita" (little flag), a carryover term from the days of mechanical taximeters, in which a little flag was turned to wind up the mechanism. The flag would be hidden at the start of a trip and moved to the visible position at the end.
[edit]
Accessories and Features
Taximeters can include several accessories, or act as components in larger dispatching/control systems. Features include:
Ticket/receipt printer
Fraud control and prevention (on the part of the owner or operator), through the impression of control tickets or computer monitoring. Additionally, taximeters are often visually sealed by a municipal weights and scales authority after initial calibration.
Radio communication, allowing trip status to be monitored by a dispatcher or supervisor.
Dispatching of trip assignments through radio or data systems.
Interaction with GPS systems to assist with dispatching & to provide security.
Seat sensors that detect the presence of a passenger (to prevent a cab from carrying fares without activating the taximeter)
Credit or prepaid card support
[edit]
Work cycle
During normal operation, taximeters repeat cyclically through several stages:
Argentinian Taxímeter "Digitax Printer" in "Libre" (Available) mode
Mechanical autorickshaw meter
Free (or For Hire in UK): The taxicab is empty and available for hire. The luminous sign, if present, is switched on.
Occupied (or Hired): The taximeter enters in this stage at the start of the trip and the "Free" sign is extinguished. In this stage the running fare and the present tariff are displayed. Additional information that can be displayed in this mode includes extras (e.g. credits for luggage), present time, speed, etc.
To Pay (or Stopped in UK): At the end of the trip, the driver enters this stage to collect payment, make change, and optionally print a receipt. The exterior roof light may also blink to alert potential passengers.
[edit]
See also
Taxicab
Ohmer fare register
Mobile data terminal
Odometer
Speedometer
Tachometer
Categories: Measuring instruments | Automotive technologies | Taxicabs
article discussion edit this page history
Log in / create account
navigation
Main page
Contents
Featured content
Current events
Random article
search
interaction
About Wikipedia
Community portal
Recent changes
Contact Wikipedia
Donate to Wikipedia
Help
toolbox
What links here
Related changes
Upload file
Special pages
Printable version
Permanent link
Cite this page
languages
Deutsch
Español
Esperanto
Français
Bahasa Indonesia
Italiano
?????
???
Polski
Português
???????
Svenska
??????????
This page was last modified on 9 March 2009, at 15:43 (UTC). All text is available under the terms of the GNU Free Documentation License. (See Copyrights for details.)
Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a U.S. registered 501(c)(3) tax-deductible nonprofit charity. Privacy policy
About
Wikipedia Disclaimers
Please participate in a vote to determine the future copyright
terms of Wikimedia projects (vote ends May 3, 2009). Vote now!
Scholarship applications for Wikimania 2009 are now open. Apply
now! [Hide] [Help us with translations!] Taxicabs of New York
City From Wikipedia, the free encyclopedia (Redirected from
New York City Taxi & Limousine Commission) Jump to: navigation,
search Main article: Taxicabs of the United States A Ford Escape
NYC taxicab, new branding. The taxicabs of New York City, with
their distinctive yellow paint, are a widely recognized icon
of the city.[1] Taxicabs are operated by private companies and
licensed by the New York City Taxi and Limousine Commission.
The Commission is a New York City government agency, within
the New York City Department of Transportation, that is best
known for its responsibility for the more than 13,087 taxis
operating in the city.[2] It also oversees over 40,000 other
for-hire vehicles, including "black cars", commuter vans and
ambulettes.[1] Taxicabs are operated by private companies and
licensed by the Taxi and Limousine Commission. "Medallion taxis,"
the familiar yellow cabs, are the only vehicles in the city
permitted to pick up passengers in response to a street hail.
Contents [hide] * 1 History o 1.1 Early 1900s - The Checker
Cab o 1.2 1930s - Medallion System Introduced o 1.3 1960s -
Yellow Cabs o 1.4 1970s - New York City Taxi and Limousine Commission
o 1.5 1980s - Demographic change in drivers o 1.6 1990s - Changes
in types of vehicles and Operation Refusal o 1.7 2000s - New
computer technologies and hybrid vehicles * 2 Medallion taxicabs
and livery taxicabs * 3 Hailing a medallion taxicab * 4 Fares
* 5 References * 6 External links [edit] History [edit] Early
1900s - The Checker Cab Metal die-cast model of a Checker taxicab.
The first taxicab company in New York was the New York Taxicab
Company, which in 1907 imported 600 gasoline-powered cars from
France. The cars were painted red and green. Within a decade
several more companies opened business and taxicabs began to
proliferate. The fare was 50 cents a mile, a rate only affordable
to the relatively wealthy.[3] Previous taxis, including the
one that killed Henry Bliss in 1899, were electric. By the 1920s,
industrialists recognized the potential of the taxicab market.
Automobile manufacturers like General Motors and the Ford Motor
Company began operating fleets. The most successful manufacturer,
however, was the Checkered Cab Manufacturing Company. Founded
by Morris Markin, Checker Cabs produced the large yellow and
black taxis that became one of the most recognizable symbols
of mid-20th century urban life. For many years Checker cabs
were the most popular taxis in New York City. [edit] 1930s -
Medallion System Introduced During the Great Depression New
York had as many as 30,000 cab drivers. With more drivers than
passengers, cab drivers were working longer hours; additionally,
there were concerns regarding the maintenance and mechanical
integrity of the vehicles. In considering how to handle the
situation, the city considered creating a taxi monopoly. The
plan was abandoned after Mayor Jimmy Walker was accused of accepting
a bribe from the Parmelee Company, the largest taxi company.
In 1937 Mayor Fiorello H. La Guardia signed the Haas Act, which
introduced official taxi licenses and the medallion system that
remains in place today. The law limited the number of licenses
to 16,900, but the number dwindled to 11,787, a limit which
continued until 1996 when the TLC added 133 cabs.[4]. Since
then more medallions have been added to the fleet and the city
still only has around 13,000 medallions.[5] Because the medallion
system artificially restricts the number of cabs, it has been
criticized as a barrier to entry to the taxi market [6] that
somewhat paradoxically has created a market for illegal taxicab
operation in areas underserved by medallion cabs. Because the
cost of leasing a medallion is so high, the system may cut into
the income of drivers and raise costs to passengers. On the
other hand, some transportation analysts contend that cities
with no barriers to entry to the taxi market end up with an
abundance of poorly maintained taxis. They say that a medallion
system helps the city to better regulate taxis and enables the
city to raise the standards of all taxis. [7] The medallions
which could not be sold for a simple $10 renewal fee during
the 1930s are now worth hundreds of thousands of dollars with
fleet medallions topping $600,000 in 2007[8] Over the years,
many medallions once owned by individual drivers were sold to
large taxi fleets. To preserve the opportunity for individual
drivers to own and drive their own taxi, certain medallions
were designated for owner-operators. These cabs must be personally
driven by the medallion owner for 210 nine-hour shifts per year,
after which they can, if the driver chooses, be leased out.
Corporate medallions, on the other hand, cost more, and are
required to be leased double shifts, 365 days a year. About
29% of all taxis are owner operated, the rest are leased. [edit]
1960s - Yellow Cabs In the 1960s New York City experienced many
of the problems of social unrest that engulfed other American
cities.[citation needed] Crime rates increased along with racial
tensions.[citation needed] As a result, a quickly growing industry
of private livery services emerged. Unofficial drivers were
barred from picking up people on the street, but they readily
found business in under-served neighborhoods. In 1967, New York
City ordered all "medallion taxis" be painted yellow to help
cut down on unofficial drivers and make official taxicabs more
readily recognizable.[3] The yellow taxi had been popularized
by John D. Hertz, who started the Yellow Cab Company in 1915
and which operated in a number of cities including New York.
Hertz painted his cabs yellow after he read a study identifying
yellow as the most visible color from long distances.[3] [edit]
1970s - New York City Taxi and Limousine Commission New York
City Taxi and Limousine Commission Enforcement Patch. The New
York City Taxi and Limousine Commission (TLC) was established
in 1971 with jurisdiction over the city's medallion (yellow)
taxicabs, livery cabs, "black cars", commuter vans, paratransit
vehicles (ambulettes) and some luxury limousines. The TLC was
founded to deal with the growing number of drivers and to address
issues important to both the taxi and livery industries. Its
predecessor was the New York City Hack Bureau, operated under
the aegis of the New York City Police Department. In the 1970s
and 1980s both the unofficial livery services and the medallion
taxicab companies began finding more and more of their drivers
in the growing populations of Black, Latino, and Middle Eastern
immigrants to the city as the previous generation of cabbies
retired and moved out of the city.[citation needed] Crime in
New York City had become severe at this point, and cabbies were
often the victims of robberies and street crime.[citation needed]
Bulletproof partitions between the rear passenger seat and the
driver became common. [edit] 1980s - Demographic change in drivers
By the mid-1980s and into the 1990s the demographic changes
among cabbies began to accelerate as new waves of immigrants
arrived in New York. Today, according to the 2000 U.S. Census,
of the 62,000 cabbies in New York 82% are foreign born: 23%
are from the Caribbean (the Dominican Republic and Haiti), and
30% from South Asia (India, and Pakistan]]).[9][10] The production
of the famous Checker Cab had stopped and although there were
still many in operation, the Chevrolet Caprice became the industry
top choice. The working conditions of cabbies have changed as
crime in New York has plummeted, while the cost of medallions
has increased and fewer cabbies own their taxicabs than in previous
times. [edit] 1990s - Changes in types of vehicles and Operation
Refusal After 1996, when Chevrolet stopped making the Caprice,
the Ford Crown Victoria became the most widely used sedan for
yellow cabs in New York. In addition, yellow cab operators also
use the Honda Odyssey, Chevrolet Venture, Ford Freestar, and
Toyota Sienna minivans which offer increased passenger room.
The distinctive Checker cabs have, due to their durable construction,
been phased out only recently, the last one being retired in
July 1999, being over 20 years in service and nearly one million
miles on its odometer.[11] Laws since 1996 require taxis be
replaced every 6 years regardless of condition. In 1996 the
TLC began Operation Refusal, an undercover sting operation created
to address the phenomenon of service refusal. In 1998, the TLC
enacted a package, inspired by Mayor Rudy Giuliani, of regulatory
reforms that included a structured framework of enhanced driver
standards. In 1999, actor Danny Glover filed a complaint with
the TLC after he was allegedly refused service by New York cab
drivers.[12] This resulted in a highly publicized Operation
Refusal crackdown on drivers who were allegedly discriminating
against certain passengers for various bias-related reasons.[13]
However, Giuliani's crackdowns led to a series of successful
lawsuits against the city and the TLC. In 2000, a federal judge
ruled that the NYPD had violated taxi drivers' First Amendment
rights by refusing to let the drivers engage in a peaceful protest
of new rules. The TLC also lost a series of cases in state courts
for implementing rules without allowing for notice and comment.
In 2000, another federal judge ruled that the Operation Refusal
sting violated the cabbies' due process rights. In 2004, TLC
inspectors were embarrassed when they handcuffed and arrested
60 Minutes reporter Mike Wallace, charging him with disorderly
conduct for simply questioning the treatment of his driver.
In 2006, the city was forced to settle the remaining aspects
of the Operation Refusal case. Under the settlement, the TLC
agreed to pay a group of 500 taxi drivers $7 million.[14] [edit]
2000s - New computer technologies and hybrid vehicles Taxicabs
at the north end of the Murray Hill Tunnel in Manhattan. Ford
Crown Victoria taxicab painted for the Garden in Transit project.
Nissan Altima hybrid taxicab. Toyota Prius hybrid taxicab. In
2005, New York introduced incentives to replace its current
yellow cabs with electric hybrid vehicles such as the Toyota
Prius and Ford Escape Hybrid[15]. In May 2007, New York City
Mayor Michael Bloomberg proposed a five-year plan to switch
New York City's taxicabs to more fuel-efficient hybrid vehicles
as part of an agenda for New York City to reduce greenhouse
gas emissions. Approximately 90% of New York's 13,000 yellow
cabs are Ford Crown Victoria's. This proposal will help to reduce
greenhouse gas emissions and will be the equivalent of removing
32,000 private cars from the road.[16] From September to December
2007, many of the taxis participated in a voluntary public art
project called Garden in Transit in which flower decals painted
by children were affixed to the hoods of taxis. The TLC has
mandated that by the end of January 2008 all taxis should be
equipped with a Passenger Information Monitor (PIM) that is
a screen in the backseat that can provide entertainment, a live
GPS map of location, and be used to pay for rides by swiping
a credit card. The drivers will have an electronic Driver Information
Monitor (DIM) in which messages can be sent to them informing
them of traffic conditions and facilitating retrieving lost
objects.[17] Several taxicab drivers objecting to the cost of
the devices (estimated at between $3,000 and $5,000 each)[18]
staged voluntary strikes on September 5th and 6th and October
22 in 2007. The city implemented a “zone pricing” structure
during the days and the strikes had minimal impact on the city
according to officials.[19] Originally, before October 2007,
NYC Yellow cabs displayed the fare stickers in the front doors
and the Words "NYC Taxi" and the medallion number on the back
doors. On September 30, 2007, all of the yellow cab decals were
redesigned. Now, the cabs are easily identified with the medallion
number followed with a checker pattern on the left and right
rear fenders. A futuristic fare panel on the rear doors, and
the front doors display a retroistic "NYC Taxi".[20] [edit]
Medallion taxicabs and livery taxicabs A New York City taxicab
medallion attached to the hood. Only "medallion taxicabs," those
painted in distinctive yellow paint and regulated by the TLC,
are permitted to pick up passengers in response to a street
hail. The TLC also regulates and licenses for-hire vehicles,
known as “car services” or “livery cabs”, which are prohibited
from picking up street hails (although this is less often enforced
in outer boroughs) and are supposed to pick up only those customers
who have called the car service's dispatcher and requested a
car. While medallion taxicabs in New York are always yellow,
car service vehicles may be any color but yellow, and are usually
black. For this reason, these taxi operators are sometimes called
“black car” services. Despite the de jure prohibition on picking
up passengers who hail on the street, some livery cabs nevertheless
do so anyway, often to make extra money. When a livery cab engages
in street pick-ups, it becomes known as a "gypsy cab." They
are often found in areas not routinely visited by medallion
cabs, and authorities tend to turn a blind eye to the practice
rather than leave sections of the city without cab service.
The use of gypsy cabs is strictly at the rider’s risk, and it
is recommended that passengers negotiate a fare with the driver
before entering, as the cabs are not equipped with meters, and
fares are not regulated by the TLC. The driver also is taking
a risk that the passenger will leave without paying. Medallion
taxicabs are named for the official medallion issued by the
TLC and attached to a taxi’s hood. The medallion may be purchased
from the City at infrequent auctions, or from another medallion
owner. Because of their high prices (often over $300,000)[21]
medallions (and most cabs) are owned by investment companies
and are leased to drivers ("hacks"). An auction was held in
2006 where 308 new medallions were sold. In the 2006 auction
all medallions were designated as either hybrids (254) or handicap
accessible (54) taxis. A livery car on Staten Island. [edit]
Hailing a medallion taxicab Yellow cabs are concentrated in
the borough of Manhattan, but patrol throughout the five boroughs
of New York City and may be hailed with a raised hand or by
standing at a taxi stand. A cab's availability is indicated
by the lights on the top of the car. When just the center light
showing the medallion number is lit, the cab is empty and available.
When the OFF DUTY inscriptions to either side of the medallion
number are lit, the cab is off duty and not accepting passengers.
When no lights are lit, the cab is occupied by passengers. There
is an additional round amber light mounted on the left side
of the trunk, as well as an amber light at the front of the
cab, usually hidden from view behind the grille. When activated
by the driver, these "trouble lights" blink to summon the police.
A maximum of four passengers may be carried in most cabs, although
larger minivans may accommodate five passengers, and one child
under seven can sit on an adult’s lap in the back seat if the
maximum has been reached.[22] Drivers are required to pick up
the first or closest passenger they see, and may not refuse
a trip to a destination anywhere within the five boroughs, neighboring
Westchester and Nassau Counties, or to Newark Liberty International
Airport. The TLC operates undercover anti-discrimination stings
to ensure cabbies do not engage in racial profiling or otherwise
discriminate against passengers hailing cabs from the street.
New York medallion taxicab in a prior livery. The medallion
number is on the side of the taxicab. A New York City yellow
taxicab in the new scheme. Note the new NYC taxicab logo on
the front door and the flower painting on the hood, indicating
this cab's participation in the Garden in Transit project. [edit]
Fares As of June 2006, fares begin at $2.50 ($3.00 after 8:00
p.m., and $3.50 during the peak weekday hours of 4:00–8:00 p.m.)
and increase based on the distance traveled and time spent in
slow traffic (40 cents for each one-fifth of a mile or 60 seconds
of no motion or motion under 12 miles an hour). The passenger
also has to pay the fare whenever a cab is driven through a
toll. The taxi must have an E-ZPass tag, and passengers pay
the discounted E-ZPass toll rates.[23] Taxi drivers are not
permitted to use cell phones while transporting passengers,
even if they use a hands-free headset. 241 million passengers
rode in New York taxis in 1999. The average cab fare in 2000
was $6; over $1 billion in fares were paid that year in total.[3]
[edit] References 1. ^ a b New York City Taxi and Limousine
Commission (2006-03-09). "The State of the NYC Taxi" (PDF).
http://www.nyc.gov/html/tlc/downloads/pdf/state_of_taxi.pdf.
Retrieved on 2007-02-18. 2. ^ Moynihan, Colin. "Rival Drivers’
Groups Disagree on Likelihood of Taxi Strike", The New York
Times, August 24, 2007. Accessed October 3, 2007. "The two groups,
which have been vying for the right to speak for city cabdrivers,
were at odds over a decision by the Taxi and Limousine Commission
that requires all of the city’s 13,087 medallion taxis to be
equipped by the end of January with new technology including
a global positioning system, a credit card system and a monitor
that provides passengers with an electronic map." 3. ^ a b c
d PBS and WNET (2001-08). "Taxi Dreams". http://www.pbs.org/wnet/taxidreams/history/index.html.
Retrieved on 2007-02-18. 4. ^ Medallion Limits Stem From the
30's – New York Times – May 11, 1996 5. ^ nyc.gov – Retrieved
November 9, 2007 6. ^ Regulation Magazine, Vol. 20 No. 1, 1997
7. ^ - Schaler Consulting Report 8. ^ New York taxi license
hits record price: $600,000 - Reuters - May 30, 2007 9. ^ Bebepe,
Jen. Turning yellow cabs into gold: Long days behind the wheel
pay off as drivers become property owners", The Real Deal, September
2007. Accessed October 3, 2007. "In 2000, Bangladesh replaced
Pakistan as the No. 1 country of origin for newly licensed cab
drivers; some 18 percent of drivers were from the South Asian
country, compared to 10 percent in 1991, and 1 percent in 1984.
In all, 91 percent of New York City cabbies are foreign-born."
10. ^ "The Changing Face of Taxi and Limousine Drivers", Schaller
Consulting. Accessed October 3, 2007. 11. ^ Wilgoren, Jodi.
"Last New York Checker Turns Off Its Meter for Good", The New
York Times, July 27, 1999. Accessed August 20, 2008. "The Taxi
and Limousine Commission says his Checker, which is on its third
engine and nearing one million miles on the odometer, needs
a new chassis. Mr. Johnson's mechanic says that would cost $6,000
or more." 12. ^ Williams, Monte. " Danny Glover Says Cabbies
Discriminated Against Him", The New York Times, November 4,
1999. Accessed October 7, 2007. "The actor Danny Glover, of
the Lethal Weapon series, Beloved, and other films, filed a
complaint yesterday with the City Taxi and Limousine Commission,
charging a cabdriver with discrimination on Oct. 9 for refusing
to allow him to ride in the front passenger seat." 13. ^ Bumiller,
Elisabeth. " Cabbies Who Bypass Blacks Will Lose Cars, Giuliani
Says", The New York Times, November 11, 1999. Accessed October
7, 2007. "Mr. Giuliani described the crackdown as a toughening
of two existing but only minimally successful undercover efforts,
both called Operation Refusal, one run by the Police Department,
the other by the Taxi and Limousine Commission." 14. ^ Lueck,
Thomas J. "New York City to Pay Settlement to Taxi Drivers Accused
of Bias", The New York Times, March 8, 2006. Accessed October
7, 2007. "Under the agreement, termed a "settlement in principle"
by Paula Van Meter, a lawyer for the city, about $7 million
from the city will go to the cabbies, who were penalized without
having been granted hearings for showing bias toward passengers,
refusing to take them to certain locations or other violations.
The cabbies were penalized by the Taxi and Limousine Commission
from late 1999 through early 2002 under Operation Refusal, an
enforcement tactic begun after the actor Danny Glover complained
that five taxis had refused to stop for him because he is black."
15. ^ New York City Taxi and Limousine Commission (2005-09-08).
"Taxi and Limousine Commission Votes Today to Authorize Cleaner,
Greener Hybrid-Electric Taxicabs". http://www.nyc.gov/html/tlc/html/news/press05_04.shtml.
Retrieved on 2006-08-16. 16. ^ Rivera, Ray (2007, May 23) Mayor
Plans an All-Hybrid Taxi Fleet. New York Times, p. B1 17. ^
Medallion Taxicab Technology Enhancements - nyc.gov – Retrieved
November 9, 2007 18. ^ Medallion Taxicab Technology Enhancements
- nyc.gov – Retrieved November 9, 2007 19. ^ City Cabdrivers
Strike Again, but Protest Gets Little Notice – New York Times
– October 23, 2007 20. ^ http://www.nydailynews.com/news/2007/09/29/2007-09-29
21. ^ TLC : Average Medallion Prices. 22. ^ New York Taxis --
Getting around New York City in a Taxi "New York Taxis - - Getting
Around New York City in a Taxi", About.com. Accessed October
2, 2007. 23. ^ New York City Taxi and Limousine Commission:
Passenger Information, Rate of Fare, accessed June 11, 2006.
[edit] External links * Understanding 2006 Hybrid Car Tax Credits
at HowStuffWorks * New York City Taxi and Limousine Commission
* Article on hossli.com about the designer of the new Taxi logo
Retrieved from "http://en.wikipedia.org/wiki/Taxicabs_of_New_York_City"
Categories: Government of New York City | Transportation in
New York City | Taxicabs of the United States Hidden categories:
All articles with unsourced statements | Articles with unsourced
statements since February 2007 Views * Article * Discussion
* Edit this page * History Personal tools * Log in / create
account Navigation * Main page * Contents * Featured content
* Current events * Random article Search Interaction * About
Wikipedia * Community portal * Recent changes * Contact Wikipedia
* Donate to Wikipedia * Help Toolbox * What links here * Related
changes * Upload file * Special pages * Printable version *
Permanent link * Cite this page Languages * Svenska Powered
by MediaWiki Wikimedia Foundation * This page was last modified
on 22 April 2009, at 20:06 (UTC). * All text is available under
the terms of the GNU Free Documentation License. (See Copyrights
for details.) Wikipedia® is a registered trademark of the Wikimedia
Foundation, Inc., a U.S. registered 501(c)(3) tax-deductible
nonprofit charity. * Privacy policy * About Wikipedia * Disclaimers
Please participate in a vote to determine the future copyright
terms of Wikimedia projects (vote ends May 3, 2009). Vote now!
Scholarship applications for Wikimania 2009 are now open. Apply
now! [Hide] [Help us with translations!] Merchant account From
Wikipedia, the free encyclopedia Jump to: navigation, search
This article is missing citations or needs footnotes. Please
help add inline citations to guard against copyright violations
and factual inaccuracies. (January 2008) A merchant account
is a contract under which an acquiring bank extends a line of
credit to a merchant, who wishes to accept payment card transactions
of a particular card association brand. Without such a contract,
one cannot directly accept payments by any of the major credit
card brands. When using an intermediary payment service provider
(such as PayPal), the merchant account is in fact held by the
service provider itself. Contents [hide] * 1 Methods of processing
credit cards o 1.1 Credit card terminal o 1.2 Automated Response
Unit (ARU) o 1.3 Payment gateway o 1.4 Level 2 or Level 3 Processing
- Purchasing Cards o 1.5 Merchant Account Marketing o 1.6 Marketing
by Banks o 1.7 Marketing by Independent Sales Organization (ISO)/MSPs
* 2 Rates and fees o 2.1 Discount Rates + 2.1.1 3-Tier Pricing
# 2.1.1.1 Qualified rate # 2.1.1.2 Mid-qualified rate # 2.1.1.3
Non-qualified rate + 2.1.2 6-Tier Pricing + 2.1.3 Interchange
Plus Pricing + 2.1.4 Bill Backs o 2.2 Other Fees + 2.2.1 Authorization
fee + 2.2.2 Statement fee + 2.2.3 Monthly minimum fee + 2.2.4
Batch fee + 2.2.5 Customer Service fee + 2.2.6 Annual fee +
2.2.7 Early Termination fee + 2.2.8 Chargeback fee * 3 See also
* 4 References * 5 External links [edit] Methods of processing
credit cards Today a majority of credit card transactions are
sent electronically to merchant processing banks for authorization,
capture and deposit. Various methods exist for presenting a
credit card sale to "the system." In all circumstances either
the entire magnetic strip is read by a swipe through a credit
card terminal/reader or the credit card information is manually
entered into a credit card terminal, a computer or website.
The earliest methods, submitting credit card slips to a merchant
processing bank by US mail, or by accessing an Automated Response
Unit (ARU) by telephone, are still in use today but have long
been overshadowed by electronic devices. These early methods
used two-part forms and a manual device for mechanically imprinting
the embossed card number information onto the forms. Whenever
practical it is best to swipe a credit card because the rates
will be much lower and the incidence of stolen credit card number
fraud is greatly reduced. [edit] Credit card terminal A typical
credit card terminal that is still popular today. A credit card
terminal is a stand-alone piece of electronic equipment that
allows a merchant to swipe or key-enter a credit card's information
as well as additional information required to process a credit
card transaction. A credit card terminal is a dedicated piece
of equipment that only processes credit cards although it is
common for related transactions including gift cards and check
verification to also be performed. A credit card terminal typically
must be plugged in to a power supply and connected to a telephone
line. However, some terminals may be powered by batteries, communicate
over the Internet or through the cellular phone networks. When
a credit card is processed (either swiped through the magnetic
stripe reader or keyed in to the keypad), it contacts the network
to verify if the credit card can be authorized. The transaction
is then stored on the machine until the polling window is opened.
The machine will either upload the electronic funds directly
to the merchant bank, or a polling service provider will dial
in to collect, process then submit the data to the merchant
bank. The most popular credit card terminals consist of a modem,
keypad, printer, magnetic stripe reader, power supply and memory
card. They have had the same basic design since the 1980s. As
with computers, there is a wide range of memory capacities and
other features like built-in printers and debit card pinpads
that affect the manufacturing cost of a credit card terminal.
[edit] Automated Response Unit (ARU) An ARU (also known as a
voice authorization, capture and deposit) allows the manual
keyed entry and subsequent authorization of a credit card over
a cellular or land-line telephone. With this method a merchant
typically imprints their customer's card with an imprinter to
create a customer receipt and merchant copy, then process the
transaction instantaneously over the phone. [edit] Payment gateway
A payment gateway is an e-commerce service that authorizes payments
for e-businesses and online retailers. It is the equivalent
of a physical POS (point-of-sale) terminal located in most retail
outlets. A merchant account provider is typically a separate
company from the payment gateway. Some merchant account providers
have their own payment gateways but the majority of companies
use 3rd party payment gateways. The gateway usually has 2 components:
a) the virtual terminal that can allow for a merchant to securely
login and key in credit card numbers or b) have the website's
shopping-cart connect to the gateway via an API to allow for
real time processing from the merchant's website. [edit] Level
2 or Level 3 Processing - Purchasing Cards Visa and Mastercard
have created a specialized type of credit card used primarily
by government agencies and businesses. Increasingly, corporations
and government agencies are relying on this form of payment
to compensate their service providers and suppliers. Businesses
benefit by receiving their funds quickly and by winning competitive
bids and government contracts where purchasing cards are the
required form of payment. The downside, however, is the increased
costs associated with receiving these payments. These costs
will usually be much higher than accepting a standard consumer
credit card. The solution is that some businesses may qualify
for ways to process these transactions that allow them to pay
lower fees if they can supply additional information, called
"level 2 or level 3 data". For example, if government transactions
are over $5,000, businesses can significantly reduce their transaction
costs by including "level 2 or level 3 data" about the purchase
along with each transaction. Examples of level 2 or level 3
data is a purchase order number associated with the transaction
that the credit card will be paying. This data is passed on
to the purchaser so that it may be many times easier to reconcile
the transaction. If all the required data is not collected and
passed on during the transaction, the merchant can have surcharges
added to the basic fees or be forced into a non qualified transaction
category. [edit] Merchant Account Marketing Merchant accounts
are marketed to merchants by two basic methods: either directly
by the processor or sponsoring bank, or by an authorized agent
for the bank and additionally directly registered with both
Visa and MasterCard as an ISO/MSP (Independent Selling Organization
/ Member Service Provider). Marketing details are by card issuers
like Visa and MasterCard, and are enforced by various rules
and fines. [edit] Marketing by Banks A bank that has a merchant
processing relationship with Visa and Mastercard, also known
as a member bank, can issue merchant accounts directly to merchants.
To reduce risk, some banks limit approval to merchants in its
geographical area, those with a physical retail storefront,
or those that have been in business for 2 years or more. [edit]
Marketing by Independent Sales Organization (ISO)/MSPs To market
merchant accounts, an ISO/MSP must be sponsored by a member
bank. This sponsorship requires that the bank verify the financial
stability and suitability of the company that will be marketing
on its behalf. The ISO/MSP must also pay a fee to be registered
with Visa and Mastercard and must comply with regulations in
how they may market merchant accounts and the use of copyrights
of Visa and Mastercard. One way to verify if an ISO/MSP is in
compliance is to check a website or any other marketing material
for a disclosure "company is a registered ISO/MSP of bank, town,
state. FDIC insured". This disclosure is required by both Visa
and Mastercard and will cause a fine of up to $25,000 if it
is not clearly visible. In almost all cases, if there is no
disclosure, the company is likely to be an uninformed 4th party
or worse. In many cases unregistered operators have been responsible
for some of the worst horror stories from merchants. [edit]
Rates and fees A Merchant Account has a variety of fees, some
periodic, others charged on a per-item or percentage basis.
Some fees are set by the merchant account provider, but the
majority of the per-item and percentage fees are passed through
the merchant account provider to the credit card issuing bank
according to a schedule of rates called interchange fees, which
are set by Visa and Mastercard. Interchange fees vary depending
on card type and the circumstances of the transaction. For example,
if a transaction is made by swiping a card through a credit
card terminal it will be in a different category than if it
were keyed in manually. [edit] Discount Rates The discount rate
comprises a number of dues, fees, assessments, network charges
and mark-ups merchants are required to pay for accepting credit
and debit cards, the largest of which by far is the Interchange
fee. Each bank or ISO/MLS has real costs in addition to the
wholesale interchange fees, and creates profit by adding a mark-up
to all the fees mentioned above. There are a number of price
models banks and ISOs/MLSs use to bill merchants for the services
rendered. Here are the more popular price models: [edit] 3-Tier
Pricing The 3-Tier Pricing is the most popular pricing method
and the simplest system for most merchants, although the new
6-Tier Pricing is gaining in popularity. In 3-Tier Pricing,
the merchant account provider groups the transactions into 3
groups (tiers) and assigns a rate to each tier based on a criterion
established for each tier. [edit] Qualified rate A qualified
rate is the percentage rate a merchant will be charged whenever
they accept a regular consumer credit card and process it in
a manner defined as "standard" by their merchant account provider
using an approved credit card processing solution. This is usually
the lowest rate a merchant will incur when accepting a credit
card. The qualified rate is also the rate commonly quoted to
a merchant when they inquire about pricing. The qualified rate
is created based on the way a merchant will be accepting a majority
of their credit cards. For example, for an internet merchant,
the internet interchange categories will be defined as Qualified,
while for a physical retailer only transactions swiped through
or read by their terminal in an ordinary manner will be defined
as Qualified. [edit] Mid-qualified rate Also known as a partially
qualified rate, the mid-qualified rate is the percentage rate
a merchant will be charged whenever they accept a credit card
that does not qualify for the lowest rate (the qualified rate).
This may happen for several reasons such as: * A consumer credit
card is keyed into a credit card terminal instead of being swiped
* A special kind of credit card is used like a rewards card
or business card A mid-qualified rate is higher than a qualified
rate. Some of the transactions that are usually grouped into
the Mid-Qualified Tier can cost the provider more in interchange
costs, so the merchant account providers do make a markup on
these rates. The use of "rewards cards" can be as high as 40%
of transactions. So it is important that the financial impact
of this fee be understood. [edit] Non-qualified rate The non-qualified
rate is usually the highest percentage rate a merchant will
be charged whenever they accept a credit card. In most cases
all transactions that are not qualified or mid-qualified will
fall to this rate. This may happen for several reasons such
as: * A consumer credit card is keyed into a credit card terminal
instead of being swiped and address verification is not performed
* A special kind of credit card is used like a business card
and all required fields are not entered * A merchant does not
settle their daily batch within the allotted time frame, usually
past 48 hours from time of authorization. A non-qualified rate
can be significantly higher than a qualified rate and can cost
the provider much more in interchange costs, so the merchant
account providers do make a markup on these rates. [edit] 6-Tier
Pricing As a result of the Wal-Mart Lawsuit and to compete against
PIN-based debit cards (which are processed outside of the Visa
and Mastercard networks), Visa and Mastercard lowered the interchange
rates for debit cards well below those for credit cards. Some
providers can pass on the lower cost of these cards directly
to merchants. Consequently, the 3 tiers programs have added
2 classifications for debit cards that are processed without
a PIN or with a PIN for a total of 6 rate classifications. [edit]
Interchange Plus Pricing Some providers offer merchant account
services priced on an "interchange plus" basis. These accounts
are based on the "interchange" tables published by both Visa
Visa Interchange and MasterCard MasterCard Interchange. This
type of pricing creates a discount rate by adding interchange
rates, fees, assessments, markups and other costs. [edit] Bill
Backs A bill back is a relatively new price model and a variation
on interchange plus pricing. It has some variations but the
basic concept is that the merchant pays interchange on the statement
that the transactions took place and then pay all other fees,
like dues, fees and assessments, etc on the next month's statement.
It requires a great deal of time to research the actual cost
per transaction with the bill back system. Some merchants feel
this form of pricing is very misleading. [edit] Other Fees [edit]
Authorization fee The Authorization fee (actually an authorization
request fee) is charged each time a transaction is sent to the
card-issuing bank to be authorized. The fee applies whether
or not the request is approved. Note this is not the same as
Transaction fee or Per Item fee. [edit] Statement fee The statement
fee is a monthly fee associated with the monthly statement that
is sent to the merchant at the end of each monthly processing
cycle. This statement shows how much processing was done by
the merchant during the month and what fees were incurred as
a result. [edit] Monthly minimum fee The monthly minimum fee
is a way to ensure that merchants pay a minimum amount in fees
each month to cover costs from the provider to maintain the
account and to create minimal profits. If a merchant's qualified
fees do not equal or exceed the monthly minimum they will be
charged up to the monthly minimum to satisfy their minimum fee
requirements. Example: A merchant has signed a contract with
a $25.00 monthly minimum fee. If all the fees for the most recent
month of processing total only $15.00, this merchant will be
charged an additional $10.00 to meet their monthly minimum requirements.
Sometimes there are fees that are charged that are not a part
of the monthly minimum, such as statement fees. It is industry
standard to charge a monthly minimum. [edit] Batch fee A batch
fee (also known as a batch header fee) can be charged to a merchant
whenever the merchant "settles" their terminal. Settling a terminal,
also known as "batching", is when a merchant sends their completed
transactions for the day to their acquiring bank for payment.
Some providers perform this automatically. It is important to
close a batch every 24 hours or a higher rate will be assessed
by Visa or Mastercard. [edit] Customer Service fee The customer
service fee (also known as a maintenance fee) can be charged
by some providers to pay for the cost of customer service. [edit]
Annual fee The Annual fee can be charged by some providers to
pay for costs of maintaining the merchant's account. Sometimes
these fees can be quarterly. The fee can be from $49-$399. [edit]
Early Termination fee The early termination fee can be charged
by some providers if the merchant ends the contract before the
end of the contract term. While contract terms of 1-3 years
are typical, some providers have terms of up to 5 years with
a one year prior notice to cancel or the fee will be assessed.
Some providers also assess all statement fees and monthly minimums
remaining when the contract is terminated. Some providers may
also assess a "lost profit" fee based on an assumption of profits
they concluded they would have earned during the full term of
the contract. [edit] Chargeback fee The chargeback is the largest
risk that is presented to banks and providers and therefore
their biggest fear. This is not to be confused with a refund,
which is simply a merchant refunding a transaction. In the Visa
and Mastercard rules, the merchant's processing bank is 100%
responsible for all the transactions that the merchant performs.
This can leave the provider open to millions of dollars of potential
losses if the merchant operates in an illegal or risky manner
and generates many chargebacks. The providers pass this cost
on to the merchant, but if the merchant is fraudulent or simply
does not have the money, the provider must pay all the costs
to make the card holder whole. The chargeback risk is the largest
part taken into consideration during the contract application
and underwriting process. Some banks are many times more stringent
than others when assessing a merchant's chargeback risk. If
a merchant encounters a chargeback they may be assessed a fee
by their acquiring bank. A potential chargeback is presented
on behalf of the card holder's bank to the merchant's credit
card processing bank. A reason code is established by the card
issuer to properly identify the type of potential chargeback
based on the card holder's complaint. The most common complaint
is that the card holder can not remember the transaction. Usually,
these potential chargebacks are corrected when the merchant's
processing bank sends over more details about the transaction.
Some providers charge a fee for this service, known as a "Retrieval
Request". A chargeback can also be related to a fraud or similar
dispute that the card holder is claiming to the merchant. This
fee can be charged by some providers whether the chargeback
is successful or not and is not dependent on the amount of the
chargeback. Currently both Visa and Mastercard require all merchants
to maintain no more than 1% of dollar volume processed to be
chargebacks. If the percentage goes above, there are fines starting
at $5000 - $25,000 to the merchant's processing bank and ultimately
passed on to the merchant. In all cases, a chargeback will cost
the merchant the chargeback fee, typically $15-$30, plus the
cost of the transaction and the amount processed. [edit] See
also * Merchant services * Credit card * Credit card terminal
* Payment gateway * Electronic Commerce * Credit card fraud
* Chargeback insurance * Payment card industry (PCI) * Cardholder
Information Security Program (CISP) [edit] References * Visa
Interchange Visa Interchange rate table. * Mastercard Interchange
Mastercard Interchange rate table. * MasterCard Merchant Rules
PDF guidelines for all businesses that accept MasterCard credit
cards. * Visa USA - Accepting Visa Guide and information for
accepting Visa and other credit cards. [edit] External links
* Electronic Transaction Association (ETA) is the international
trade association for the payment processing industry. * The
GreenSheet is a trade newsletter for the merchant account sales
industry, serving Banks, ISOs and MLSs. * National Association
of Payment Professionals is an organization created to provide
education, benefits, liaison/representation and certification
to individuals selling in the payment processing industry. Retrieved
from "http://en.wikipedia.org/wiki/Merchant_account" Categories:
Finance | Payment systems | Merchant services Hidden categories:
Articles with unsourced statements since January 2008 | All
articles with unsourced statements Views * Article * Discussion
* Edit this page * History Personal tools * Log in / create
account Navigation * Main page * Contents * Featured content
* Current events * Random article Search Interaction * About
Wikipedia * Community portal * Recent changes * Contact Wikipedia
* Donate to Wikipedia * Help Toolbox * What links here * Related
changes * Upload file * Special pages * Printable version *
Permanent link * Cite this page Languages * Español Powered
by MediaWiki Wikimedia Foundation * This page was last modified
on 22 April 2009, at 15:20 (UTC). * All text is available under
the terms of the GNU Free Documentation License. (See Copyrights
for details.) Wikipedia® is a registered trademark of the Wikimedia
Foundation, Inc., a U.S. registered 501(c)(3) tax-deductible
nonprofit charity. * Privacy policy * About Wikipedia * Disclaimers
Please participate in a vote to determine the future copyright
terms of Wikimedia projects (vote ends May 3, 2009). Vote now!
Scholarship applications for Wikimania 2009 are now open. Apply
now! [Hide] [Help us with translations!] Mobile data terminal
From Wikipedia, the free encyclopedia Jump to: navigation, search
This article does not cite any references or sources. Please
help improve this article by adding citations to reliable sources
(ideally, using inline citations). Unsourced material may be
challenged and removed. (July 2008) A mobile data terminal (MDT)
is a computerized device used in emergency vehicles, taxicabs,
courier vehicles, service trucks, commercial trucking fleets,
military logistics, fishing fleets, warehouse inventory control,
and emergency vehicles to communicate with a central dispatch
office. Mobile data terminals feature a screen on which to view
information and a keyboard or keypad for entering information,
and may be connected to various peripheral devices. Standard
peripherals include two-way radios and taximeters, both of which
predate computer assisted dispatching. MDTs may be simple display
and keypad units, intended to be connected to a separate black-box
or AVL (see below) computer. While MDTs were originally dumb
terminals most have been replaced with fully functional PC hardware,
known as MDCs (Mobile Digital Computers). While the MDC term
is more correct, MDT is still widely used. Other common terms
include MVC (Motor Vehicle Computer) and names of manufacturers
such as iMobile. Contents [hide] * 1 Technology * 2 Typical
MDT features * 3 Use in-vehicle * 4 See also [edit] Technology
In the earlier days of computer-aided dispatching (CAD), many
MDT's were custom devices, used with specialized point to point
radios, particularly in applications such as police dispatching.
While applications like taxi and package delivery often still
use custom designed terminals, many CAD systems are switching
to common (or ruggedized) laptops and Wide-Area Wireless IP
communications, utilizing the Internet or private IP networks
connected to and over it. For many industrial applications,
such as commercial trucking, GIS, agriculture, mobile asset
management, and other industries, custom electronic hardware
is still preferred. Custom terminals use I/O interfaces that
connect directly to industry-specific equipment. They are usually
environmentally hardened packages with power supply protection
and robust memory file systems that greatly improve reliability
and task efficiency. MDT solutions that are based on ruggedized
consumer products or consumer available software will typically
not have the life cycle duration expected in industrial applications,
over 5 years. [edit] Typical MDT features * o 9 VDC to 36 VDC
input power. o Electrical transient protection, such as described
in ISO 7637, Electrical disturbance on road vehicles. o Serial
port to connect to a satellite or terrestrial radio transceiver.
o Digital I/O to monitor external events. o Removable medial
or I/O port of retrieving data or upgrading software. o Wide
operating temperature -10 C to 70 C or better. o Drop tested
to MIL-STD 810E, which specifies multiple drops from 48" to
plywood over concrete. o Sealed against dust and liquid. o Connections
to industry specific equipment, such as J1708 data bus for commercial
truck applications. o Display technology specific to viewing
conditions for the intended industry (LCD, TFT LCD, Vacuum fluorescent
display, CSTN). o Integrated un-interruptible power supply,
which will ride through electrical brown-outs typical in vehicle
installations. o Internal 802.11b transceiver (depending on
target application), possibly with external antenna connection.
A related device classification, specific to the transportation
industry, is called automatic vehicle location (AVL). Mobile
data terminals are often used in conjunction with a ¨black box¨
that contains GPS receiver, cell phone transceiver, other radio
devices, or interfaces to industry-specific equipment. AVL devices
may be simple stand-alone modems or may include operating systems
with application space for the system integrator. [edit] Use
in-vehicle MDTs are most commonly associated with in-vehicle
use. This requires the MDT to be anchored to the vehicle for
driver safety, device security, and user ergonomics. Mounts
are designed for attaching MDTs to mobile workspaces into most
notably automobiles, forklifts, boats, and planes. Specialized
manufacturers such as Gamber Johnson and LEDCo build mounts
for the specific MDT brands and models and for specific vehicles.
Specialized regional metal shops and mount design integrators
design MDT mounting hardware for low volume specialized applications
such as forklifts and commercial boats. MDTs generally require
specific installation protocols to be followed for proper ergonomics,
power and communications functionality. MDT installation companies
such as USAT Corp. and TouchStar Pacific specialize in designing
the mount design, assembling the proper parts, and installing
them in a safe and consistent manner away from airbags, vehicle
HVAC controls, and driver controls. Frequently installations
will include a WAN modem, power conditioning equipment, and
a WAN, WLAN, and GPS antenna mounted external to the vehicle.
[edit] See also * Portable Data Terminal [hide] v • d • e Computer
sizes Larger Super · Minisuper · Mainframe · Mini · Supermini
· Server Cray-2 Micro Personal · Workstation · Home · Desktop
· SFF (Nettop) · Plug Mobile Portable / Desktop replacement
computer · Laptop · Subnotebook · Tablet (Ultra-Mobile PC) ·
Portable / Mobile data terminal · Electronic organizer · E-book
reader · Pocket computer · Handheld game console · Wearable
computer PDAs / IAs Handheld PC · Pocket PC · Smartphone · PMPs
· DAPs Calculators Scientific · Programmable · Graphing Other
Single-board computer · Wireless sensor network · Microcontroller
· Smartdust · Nanocomputer Retrieved from "http://en.wikipedia.org/wiki/Mobile_data_terminal"
Categories: Automotive technologies | Mobile computers | Automatic
identification and data capture Hidden categories: Articles
lacking sources from July 2008 | All articles lacking sources
Views * Article * Discussion * Edit this page * History Personal
tools * Log in / create account Navigation * Main page * Contents
* Featured content * Current events * Random article Search
Interaction * About Wikipedia * Community portal * Recent changes
* Contact Wikipedia * Donate to Wikipedia * Help Toolbox * What
links here * Related changes * Upload file * Special pages *
Printable version * Permanent link * Cite this page Languages
* Français Powered by MediaWiki Wikimedia Foundation * This
page was last modified on 20 March 2009, at 13:50 (UTC). * All
text is available under the terms of the GNU Free Documentation
License. (See Copyrights for details.) Wikipedia® is a registered
trademark of the Wikimedia Foundation, Inc., a U.S. registered
501(c)(3) tax-deductible nonprofit charity. * Privacy policy
* About Wikipedia * Disclaimers
To learn more about Amos Tamam and Verifone Transportation
Systems please click
here.
|
