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18 Smartcard Interoperability Issues for the Transit Industry
The function may need to scale up or down, depending on demand or utilization levels.
There is potential for the provider to share the service across multiple projects.
Table 6 identifies the primary card service functions that need to be addressed in an inter-
operable smartcard-based fare payment system.
For many implementations, a mix of centralized and decentralized approaches will be the most
beneficial. By adopting this hybrid approach, a region can take advantage of existing capabilities
and maintain individual agency culture while also maintaining consistency of service across the
region.
2.1.3 Establishing a Framework for Program Funding
Interoperable fare payment systems require a substantial capital investment for required
equipment and systems. Funding for a project of this magnitude will likely come from multiple
sources because of multiple agencies' participation. The challenge with multi-jurisdictional
funding is to arrive at an equitable formula that each of the participating agencies can
endorse.
Project funding requirements need to be determined early in the project life cycle to pro-
vide adequate time to meet the requirements for securing the funding. Member agencies also
need to evaluate the benefits derived from the capital investment. The cost-benefit analysis
helps to identify expensive features that do not create value. However, regional systems need
to be sufficiently flexible to scale as the participating agencies needs change and grow more
sophisticated.
Table 6. Primary card service functions.
Function Description
Card Management Includes issuance and fulfillment of all smartcard
stock and management of patron account systems
Distribution Management Involves managing card inventory and deployment
to merchants, employers, and other institutions
Security Management Includes management of all system security,
including key and secure access module (SAM)
management, fraud management, negative list
management, application blocking, system access
and controls
Patron Services Includes providing support to the transit agencies
participating in the regional system, cardholders who
use the regional smartcard, and retail/distributor
merchants providing third-party services
Financial Management Includes: clearing and settlement services, funds
movement processes and services, funds pool
management services, revenue collection activities,
general accounting for the smart card program,
financial reporting services for the smartcards, and
auditing services for the smartcard program
Infrastructure Systems Includes management of the systems interface,
and Operations network, application software, configuration control,
Management device management, upgrades, and disaster recovery
Program Management Includes management of the regional program,
including brand management, regional program
administration, policy shifts, and non-financial
reporting
