passengers to pay their fare by credit card.

But Transport Minister the Hon. Ralph Marshall has thrown his support behind the move, saying it will help improve visitors' vacations.

The 80-member Bermuda Taxi Owners Union is firmly against the payment option, and believes most of the roughly 500 taxi drivers on the Island feel the same way.

Allowing passengers to pay by credit card would be a waste of taxi drivers' time and end up costing them money, said BTOU chief Mr. Custerfield Crockwell.

"By the time we run the card through the machine and fill in the slip we could be out there working on another job,'' he said. "And what about bad credit cards and the cost of the equipment?'' Mr. Marshall announced yesterday that the Public Service Vehicles Licensing Board had approved the use of a special device to be attached to taxi meters.

The device had been presented to the Board by local importing company Metromedia, which imports and sells taxi meters. It transfers the cost of the trip directly onto the credit card slip to ensure no cheating.

Mr. Marshall encouraged taxi drivers to buy the piece of equipment and start accepting credit cards.

He said although banks make a small commission on every credit card sale, taxi drivers might make up the loss with bigger tips. People paying by credit card tended to tip better, he said.

"We envision that the availability of paying for taxi fares with a credit card will be well received by passengers who prefer not to use cash, particularly visitors who have to submit claims for travel expenses,'' he said. "It can also be an advantage to visitors taking tours and also for residents.

"Research has shown that the acceptance of credit cards is an advantage to the travelling public, particularly in these times when people do not normally carry large amounts of cash.'' However, Mr. Crockwell said neither he nor his members would be installing the device or buying credit card processing equipment.

"All the other things we have been fighting for, (Mr. Marshall) has done nothing about,'' said Mr. Crockwell. "But anything that costs us, he agrees with.'' Mr. Marshall stressed the new payment option was on a voluntary basis and owners were not required by law to install credit card processing equipment.

In order for people to identify taxis that have adopted the system, a credit emblem will be displayed on the taxi window.

Mr. Crockwell said he did not believe BTOU members would lose out by not accepting the cards.

Credit cards that will be accepted are Mastercard, Visa, American Express and Discover Card.

MR. CUSTERFIELD CROCKWELL -- `What about bad credit cards?'