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CHAPTER 1 Introduction The overall objective of TCRP Project A-26 was twofold. First, the task was to identify the key information that must be exchanged between transit agencies to achieve fare payment interoperability. Second, once the information was identified, the task was to develop a prototype for a proposed public-domain application programming interface (API) and uniform application protocol data unit (APDU) that demonstrates "proof of concept" for Type A and Type B smartcards that comply with International Organization for Standardization (ISO). The report synthesizes primary research. The key activity consisted of surveying regions implementing a regionally interoperable fare payment system using smartcards. Moreover, the report references, as required, the experience gained during the implementation of interoperable fare payment system projects in locations such as New York; Washington, DC; San Francisco; Chicago; and Los Angeles. The structure for this report is as follows: Chapter 1 identifies the key institutional issues that may present barriers to implementing an interoperable transit fare payment program. The research focuses on identifying institutional issues found during the implementation of projects reviewed as part of this report. The insti- tutional issues are organized as follows: Management and organizational issues, Financial management issues, Patron impact issues, Equipment design issues, and Transit industry issues. Chapter 2 discusses the results of the formal survey conducted to identify commonalities and differences in the information exchanged between agencies. Chapter 3 identifies the data elements and information exchanged that are critical for imple- menting smartcard interoperability. Chapter 4 delineates the necessary information flows as follows: Information flows that define the requirements for developing the API and APDU, Information that needs to reside on the card, and Data flows between each level in the system architecture. Chapter 5 examines critical data management issues and policies. Chapter 6 provides a set of functions needed for a standard public-domain API that may be used in developing a uniform APDU. Chapter 7 discusses the development of a prototype for a proposed public domain API that demonstrates a "proof of concept" for ISO 14443 Type A and Type B compliant cards. Chapter 8 documents the results of the development effort. 3