Wednesday, September 9, 2009

How to avoid being a victim of Credit Card fraud in Limos or Cabs

If you travel often and use your credit card to cover expenses chances are you've had a few charges come through on your statement that you don't recall.  That $125 hotel bar tab, a $85 charge from some random tattoo parlour in NYC or that $60 charge for a cab from your hotel to the Airport.

But what happens when you notice that you've been overcharged for that cab ride.  $60 becomes $80 pretty easily.  Although you may think that your credit card is the safe way to pay, what you don't know is who is processing these charges.

When you pay in a retail store or a restaurant, your payment is processed and then you receive your receipt.  When you use you credit card in a taxi or limo, the driver fills out the charge on a credit card slip, you sign, but your payment hasn't been processed yet.  You've basically given the driver the right to charge you for his services on your credit card.

So where does this credit card slip go?  You would hope that it stays with the driver or goes to the cab company that processes payment and safely stores your credit card information and signature.  Unfortunately, this is rarely the case.


Usually the driver will now take this slip and get it 'cashed' by another driver or an independent payment processor (for lack of a better title).  It's a transaction built on convenience for both parties.  The driver gets cash that usually goes unreported when paying taxes and the person processing the charge gets a 5% commission from the driver for his troubles.  A signed credit card slip is as good as cash for the driver.

Now you get a charge on your credit card from 'Toronto Taxi/Limo'.  How do you track down which Limo Service you used?  The credit card receipt you got from the driver doesn't say his name or cab number.  By the time you dispute this charge the driver already has his money and the person who processed the payment will just refund the charge if he's confronted.  However, don't forget, he has a credit card slip, signed by you that says $80.

How can you avoid this sort of nightmare?

Taking a few precautionary steps can save you hours of trouble later on.

  • First and foremost, book with a reputable company.  Calling around looking for the best possible price is fine, but you will find that most providers rates are very competitive and you are better off choosing the provider that seems the most transparent and reachable.
    • Just because you've booked with a company that you think you can trust, does not mean that they are aware of every drivers transactions.  If a driver tells them that you paid cash, they will not be aware that you paid by credit card and will most likely be unable to help you if you receive a fraudulent charge processed by another company/person. 
  • Many Limo/Cab providers now have wireless terminals in the vehicle.  This method is usually very secure and you can watch the driver process the transaction on the spot.
  • Get a business card. When you exit the vehicle; ask for a card and the drivers information.  Most drivers will try to give you their information hoping that you will be a repeat client.  Keep this card until you get your credit card statement.
  • Most Limo/Cab companies now also offer the option to give your credit card to the office staff at the time of reservation.  It's not really pre-payment because you're not charged anything until your transfer has been completed, but at least you are sure that the office of the company you've booked with is processing the transaction. 
Do you visit Toronto often?  Consider setting up a corporate account with us and keep your expenses organized and most importantly keep costs down. 
    @mandmlimo on twitter.

    M&M Limousine (Toronto)

    3 comments:

    1. I recently got stung with fraudulent limo charges from Toronto based companies three months after I travelled to Toronto. Over $500 (US) in charges.

      I used B and M Limo and Canadian Limo. Fraud charges were Routes Limo $356.82 Canadian Limo $70.27 Charli Limo $73.01. M and M Limo were not involved - I only knew about them because they replied to a tweet.

      My Visa card was swiped in an old fashioned 'zip zap' machine and I still have the receipt. This obviously made its way to places where it shouldn't have gone.

      Ironically... I work in the secure payment industry!

      @bnlv on Twitter.

      ReplyDelete
    2. These tips are very useful and helpful. I agree that not all Limousine service can give you the satisfaction you can get. Thus, it is very important to be vocal enough of what kind of service you need and make a wise choice of Limousine service.

      ReplyDelete