TAXI drivers have slammed bosses for forcing them to pay a premium for customers who settle up using plastic cards.

Glasgow Taxi chiefs ordered card reading machines to be installed by all their drivers with customers paying a five per cent surcharge to pay with plastic.

Now, thanks to a change in EU legislation, businesses are no longer able to charge customers for using credit and debit cards.

This means taxi drivers are now to pay a 3.5 per cent surcharge every time a customer pays by card.

One furious driver, who asked not to be named, spoke to the Evening Times.

He said: "We are not happy about this. January and February are the longest two months of the year so to lose more money at this time is too much.

"We are not getting a choice, it's just a case of 'You will do this'.

"A lot of the drivers don't want the machines in the taxis at all but we were told we have to have them.

"I've spoken to plenty of other drivers and we all feel the same about it.

"If the company wants us to have these machines then they should be paying the penalty for us and not leaving us out of pocket."

Glasgow Taxis bosses said the number of passengers paying by card for their fare has more than doubled in the past 18 months.

Drivers were sent a message that reads: "As of January 13 the EU will ban all charges for paying by credit card.

"Verifone [the company providing card machines] will be deducting 3.5 per cent per transaction."

The driver added: "When people pay by card, you don't get a tip and so you're out of pocket twice.

"I understand that people find paying by card easier but the drivers shouldn't have to pay a penalty for that.

"Cash is king."

Glasgow Taxis executive committee chairman Stephen Flynn said: "It’s the way of the world and all businesses will have to tackle this change in legislation, not just the taxi trade.

"As drivers are self-employed they can claim back the small cost, which will go towards operation of the payment system, on their tax return.

"Glasgow Taxis Ltd will continue to cover the cost of the machines."

Although drivers can claim back the cost of the charge, they are still out of pocket until the end of the tax year when they can claim back the cash.

The rules around credit and debit card charges changed this week with HMRC has announced that it will stop accepting payments by personal credit card as a result.

The Federation of Small Businesses (FSB) has said the change will push their members to only accept cash as the costs of facilitating card payments will be prohibitive.