How Does a Taxi Meter Work?

Taxi meters calculate the fare cost for passengers travelling in a taxi. Most taxi meters are electronic computers or PDAs tied into a vehicle's odometer. A taxi meter calculates the fare based on a combination of distance travelled and time in transit. Many taxi services have a per minute rate, with a distance rate added one. A taxi meter displays a combination of these two rates. Many newer taxis have electronic payment systems built in, and are able to accept credit and debit cards. Some modern taxi meters also use GPS to measure distance, and have variable fares based on the location or area.