Preliminary Strategic Analysis of Next Generation Fare Payment Systems for Public Transportation (2015) / Chapter Skim
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4Chapter Overview This chapter provides an overview of the policy and planning considerations involved in implementing a new transit fare payment system. It begins by offering a working definition of a "next generation transit fare payment system," that establishes a common starting point for the discussion of new and evolving transit fare payment systems described in this report.
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Planning for a Next Generation Transit Fare Payment System 5 use a payment medium (e.g., cash, credit or debit card) to purchase a fare medium (i.e., a fare card)
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6 Preliminary Strategic Analysis of Next Generation Fare Payment Systems for Public Transportation approaches. This report focuses on the third step, by describing the transit fare payment systems or typologies currently in use and identifying technologies available that support different typologies.
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Planning for a Next Generation Transit Fare Payment System 7 As transit fare payment systems have become more capable, they have become an effective tool in helping a transit agency achieve its overall system goals. Four broad transit fare payment system goals can be identified which apply to transit agencies of all sizes and scopes.
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8 Preliminary Strategic Analysis of Next Generation Fare Payment Systems for Public Transportation elements and attributes upon the new fare payment system's ability to meet the transit agency's goals. The three areas are: • Fare program: This represents all aspects of fare structure, transfer policy, transit fare payment, fare control and fare collection.
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Planning for a Next Generation Transit Fare Payment System 9 Some choices in transit fare payment system design are better able to support certain aspects of fare policy. For example, some transit agencies and designers of transit fare payment systems report that changes in fare structure, such as implementing distance-based fares, will be easier to do with an account-based system than with a card-based system because the software modifications can be done relatively easily on the "back end" rather than with cards and card reading devices.4 Transfer Policy Transit agencies operating more than one type or mode of service (e.g., bus and subway, subway and commuter rail, etc.)
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10 Preliminary Strategic Analysis of Next Generation Fare Payment Systems for Public Transportation Transit Fare Payment Options In addition to basic fare pricing structures, transit agencies must select the transit fare payment options that riders can use to access the transit system.6 These options include: • Prepayment: Rider purchases fare before boarding. – Single-ride – Multi-ride – Period pass – Stored value • Post payment: Rider purchases fare upon alighting, or is billed on a regular cycle, e.g., through an employer program.
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Planning for a Next Generation Transit Fare Payment System 11 Historically, certain fare collection approaches have been associated with specific transit modes (see Table 2-3)
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12 Preliminary Strategic Analysis of Next Generation Fare Payment Systems for Public Transportation Fare media will be discussed in detail in Chapter 5. Chapter 2 Review • A "Next Generation Transit Fare Payment System" is a transit fare payment system that leverages technology to improve transit agency operations across the business enterprise, while enhancing the customer experience.
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