The pre-paid fares will operate daily from 10pm-6am and are aimed at stopping people running off without paying.

Taxi Cabs of Orange co-operative chairman Ged Denning said it was a problem for the industry.

"Just recently one of our taxi drivers was done for $100. That's not nice," he said.

"It doesn't happen every day but it is a problem.

"The reason for this change is to safeguard the reliability of a 24/7 taxi service from fare evasion, especially during the late night and early morning shifts."

Mr Denning said it would hopefully also encourage more people to want to work as cab drivers if they knew the system was safer.

"It's not everyone who wants to drive a taxi in the wee hours of the morning," he said.

Mr Denning said under the pre-paid system the driver would estimate the fare before the trip started.

He said the passenger needed to pay that amount.

However he said the meter would still be turned on and whatever it read at the end of the trip was the correct fare.

"If you've paid $20 and the meter says $18 you will get $2 back. If it is $22 you will need to pay $2 more," he said.

"What the meter says is what it will cost. That is the bible, if you like.

"There is no profit-making in this."

Mr Denning said cabs would have stickers and information regarding the new system.

He said the pre-paid system was in use in other cities including Albury-Wodonga, Melbourne and Darwin but he was unsure of whether it was in use in any other Central West city.

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