The taxi payments processing industry could not survive if its surcharge or service fee was halved to five per cent from 10 per cent, Reg Kermode, the chair and CEO of Cabcharge, told the company's annual meeting in Sydney yesterday.Cabcharge has applied the 10 per cent fee to credit card and debit card payments since the 1990s. The fee is the cornerstone of the company's cash flow and has funded investment in the roll out of taxi networks across Australia as well as diversification into bus services.Kermode said that "suggestions our industry could survive on five per cent... are not realistic and are likely to be met with significant resistance. The company does not intend to provide services to Visa and MasterCard at a cost to Cabcharge."The Victorian Taxi Inquiry proposed that the fee be reduced to five per cent. And, recently, the Reserve Bank of Australia, in its recent guidance on the limits to credit card surcharging, appeared to endorse this lower fee as being acceptable.On corporate governance matters, Kermode said the board would split the jobs of chair and CEO once he retired - not that Kermode, who is in his 80s, said when this is likely to be.Meanwhile, shareholders delivered a "second strike" vote against the company's remuneration report, with 39 per cent voting against it.The shareholders then resolved, in the follow up vote, to retain all the directors.