How you pay for a taxi can affect more than just your convenience—it can also influence security, budgeting, and your ability to track expenses. While both cash and card are accepted by most taxi services, the advantages and disadvantages of each may surprise you. Here’s a detailed comparison to help you choose the smartest way to pay for your next ride.
Paying with Cash: Pros and Cons
Pros:
- Universally accepted: Cash remains a reliable form of payment, especially in cities where not all taxis are equipped with digital fare terminals.
- No tech required: If your phone is dead or the card reader is down, cash always works.
- Privacy: Paying with cash means no digital trail—a plus for riders who prefer anonymity or are concerned with data privacy.
Cons:
- No digital record: If you lose your receipt or forget to ask for one, there’s no proof of payment, which makes reimbursements or disputes more difficult.
- No cashback or rewards: You won’t earn credit card points or cashback when paying with cash.
- Limited change options: Drivers may not carry enough change, especially for large bills, causing potential delays or complications.
In cities like New York, paying with cash is still an option, but digital payments have become more common. The NYC Taxi & Limousine Commission requires yellow cabs to accept card payments, making cash less necessary than it once was.
Paying with Card: Pros and Cons
Pros:
- Faster checkout: Most modern taxis are equipped with card readers, allowing for quick swipes or taps.
- Easier to track: Card payments generate digital receipts automatically, which are ideal for budgeting, taxes, or business reimbursements.
- Rewards and cashback: Many credit and debit cards offer points or cashback on transportation purchases. This can add up for frequent riders.
- Enhanced security: If your card is lost or stolen, it can be frozen or replaced—unlike cash.
Cons:
- Card minimums or added fees: Some taxi services charge a small fee for card payments or set a minimum fare for card use.
- Connectivity issues: Occasionally, card readers fail due to poor signal or outdated hardware. In such cases, drivers may request an alternate payment method.
If you’re using a taxi-hailing app like Curb or Arro, you can link your card for even faster, hands-free payments. Most of these apps also allow you to add tips and view trip receipts.
Using Digital Wallets and Gift Cards
A modern twist on card payments is the use of mobile wallets like Apple Pay, Google Pay, and Samsung Wallet. These methods are not only fast and secure, but they also reduce the need to carry physical cards.
For rideshare users, digital gift cards are an even more rewarding option. Platforms like Fluz allow riders to earn cashback with a Lyft gift card or get rewards with an Uber gift card by paying with prepaid credit directly loaded into their rideshare account.
This approach combines the best of both worlds: seamless payment and instant rewards.
Final Recommendation
For most riders, paying by card (or digital wallet) is the smarter option. It’s quick, trackable, and reward-friendly. However, having some cash on hand remains a good backup—especially in less urban areas or with independent taxi drivers who may not accept cards.
When it comes to maximizing your ride value, tech-based payments offer more long-term advantages, especially when you earn cashback with a Lyft gift card or get rewards with an Uber gift card through platforms like Fluz.
