22 August 2025
What Is a Merchant Account? Why Smart Drivers Are Switching to Modern Payment Systems
Learn how merchant accounts work, what payment processors do, and why drivers are switching to smarter, fee-free systems like CabFare.
What Is a Merchant Account?
A merchant account allows businesses to accept card payments by temporarily holding funds before settlement. It’s essential for card processing, but in many cases, comes with:
Setup delays and paperwork
Monthly service fees
Long-term contracts
For taxi drivers, rideshare operators, or small fleet owners, this traditional approach is often slow, expensive, and inflexible.
Merchant Services vs. Payment Processors
A payment processor securely routes your customer’s card details, checks for fraud, and ensures funds reach your account. Many processors bundle merchant services like hardware terminals and dashboards.
But this model is evolving.
With CabFare, you don’t need to apply for your own merchant account or lease expensive terminals. Our Tap to Pay App and EFTPOS Terminal let you accept card payments in-vehicle with zero monthly fees.
Smarter Than a Merchant Account: Meet CabFare
CabFare offers two options depending on your business size and tech preference:
CabFare EFTPOS Terminal
Built for in-vehicle use, this terminal prints receipts, accepts all cards including Amex, Visa, Mastercard, and Apple Pay, and is trusted by over 5,000 drivers.
Tap to Pay App
Use your Android or iPhone to accept contactless payments instantly—no hardware, no clutter, just your phone.
Compare both on our fee-free EFTPOS blog.
Built for Australian Drivers
CabFare serves:
We’re 100% compliant across every state and territory, and fully integrated with industry requirements including PCI compliance, digital in-app receipts, and real-time settlement.
Why It’s Time to Ditch the Old Merchant Account Model
Feature | Traditional Merchant Account | CabFare |
|---|---|---|
Monthly Fees | Often $30+ | None |
Setup Time | Days or weeks | 5 minutes |
Hardware | Required | Optional |
Compliance | Varies | Nationwide |
Contract | Often fixed |
Want to compare us with other solutions? See:
Bonus Offer: Get Paid to Get Started
Right now, new drivers can receive a sign-up driver bonus when they join CabFare. It’s fast, flexible, and puts more money in your pocket from day one.
Apply Now – No Merchant Account Needed
Don’t get stuck with outdated banking systems. Start accepting payments instantly with CabFare—no hardware lock-ins, no fixed fees, and no paperwork headaches.
Or explore more on our blog or visit our full glossary to understand more payment terms.
