On 31 March 2009 new requirements were introduced for tow truck operators regarding how they receive payments from customers for towing and related services. These changes are set out in regulations 39 and 40 of the Accident Towing Services Regulations 2008.
Customers have the right to pay for towing services by their choice of cash, credit card or debit card.
Tow truck operators are not required to have credit card or debit card payment facilities in tow trucks. However, it is illegal to tell the customer that they must pay by cash.
Customers can choose to have their vehicle towed to any destination that is less than 125 km away. The tow truck driver must tow the vehicle there, provided the customer agrees to pay at the time of the tow.
If the tow truck driver does not have the facilities to accept a credit card or debit card payment, the driver must still tow the vehicle to the customer’s chosen destination. The customer must agree to pay later.
If the customer cannot pay by cash, credit card or debit card at the time of the tow, the tow truck driver may refuse to tow the vehicle to the chosen destination. If the customer agrees to pay later, the driver can tow the vehicle back to the tow truck depot instead.
It is therefore beneficial for tow truck businesses to offer credit and debit card payment facilities at the time of the tow.
In accordance with the Accident Towing Services Regulations 2008 (refer to regulation 39), an approved tow truck (mobile) payment facility is an electronic or other payment facility that:
- enables the tow truck driver to offer the owner of the vehicle damaged in a crash the opportunity to pay the cost of accident towing services by way of credit card or debit card (whichever the customer chooses); and
- provides a receipt of payment. The receipt must include the date of payment, the amount paid, and the name of the entity (e.g. the tow truck company) to which payment is made.
From 31 March 2009 tow truck operators must have both credit card and debit card facilities at their depot. Customers must be offered the opportunity to pay by their choice of cash, credit card or debit card. It is illegal to tell customers that they must pay by cash to have their vehicles released.
In accordance with the Accident Towing Services Regulations 2008 (refer to regulation 40), an approved depot payment facility is an electronic payment system that:
- enables the consumer to pay for authorised repairs or other work done on the vehicle, accident towing services, and/or storage charges by credit card or debit card (whichever the customer chooses); and
- provides a receipt of payment. The receipt must include the date of payment, the amount paid, and the name of the entity (e.g. the tow truck company) to which payment is made.