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Pages 46-60

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From page 46...
... 46 Introduction This chapter contains case studies that describe recent next generation transit fare payment system projects from three U.S. transit agencies.
From page 47...
... Next Generation Transit Fare Payment System Case Studies 47 The ability to accept contactless credit and debit cards for direct payment of transit fares was a decision factor for UTA. They saw several benefits for UTA with this approach: • Provide convenience to riders who already have contactless financial industry payment smart cards; • Achieve automatic interoperability with other transit agencies who would accept financial payment smart cards; • Leverage investments and programs of the payments industry; • Commoditization of devices; • Established standards for business rules and security; and, • Potential for co-promotion with financial sector issuers.
From page 48...
... 48 Preliminary Strategic Analysis of Next Generation Fare Payment Systems for Public Transportation • A hosted back office requiring compliance to accept and process financial payments. • Card validators and readers certified to accept and process contactless financial payment cards.
From page 49...
... Next Generation Transit Fare Payment System Case Studies 49 holder has sufficient funds or authority to make the payment. If the card is declined, it is hot listed and will not be accepted by the system going forward until the customer arranges for payment for the unpaid trip and card acceptance is restored.76 UTA was comfortable assuming the "risk of the first tap" because if a transaction is not authorized they immediately hotlist the invalid fare medium and transmit it out to system end-points to prevent further unauthorized transactions.77 The system's account-based architecture accepts payment from ISO 14443/NFC-compliant contactless devices to authenticate valid transit riders and access their centrally managed accounts to authorize transit fare payment.
From page 50...
... 50 Preliminary Strategic Analysis of Next Generation Fare Payment Systems for Public Transportation A proof of concept demonstration of accepting government-issued PIV identification credentials was conducted in 2012. This demonstration involved six federal agency partners and 36 employees.
From page 51...
... Next Generation Transit Fare Payment System Case Studies 51 utilizes contactless technology to interface with NFC readers installed on transit vehicles that link riders to their account when making transit payments. Transit riders must pre-load their UTA FarePay accounts.
From page 52...
... 52 Preliminary Strategic Analysis of Next Generation Fare Payment Systems for Public Transportation feels this system architecture gives them the flexibility to enhance and expand their customer offerings to provide more choices and enrich their customers' experience on UTA. UTA managers feel that the account-based architecture enables them to make fare policy changes more simply than a card-based architecture, and with minimal cost.
From page 53...
... Next Generation Transit Fare Payment System Case Studies 53 Case Study 2: Southeastern Pennsylvania Transportation Authority (SEPTA) 90 Introduction The Southeastern Pennsylvania Transportation Authority (SEPTA)
From page 54...
... 54 Preliminary Strategic Analysis of Next Generation Fare Payment Systems for Public Transportation SEPTA Fare Payment System Evolution The legacy SEPTA fare payment system has been in existence for decades. For all modes except commuter rail (Regional Rail)
From page 55...
... Next Generation Transit Fare Payment System Case Studies 55 Events changed beginning in 2008 when the SEPTA system was subject to spare parts shortages and the end of the system's useful life was at hand. The reliability and functionality of the existing fare collection system could not be improved due to the age of the electronics and limitations of the existing computer operating system.
From page 56...
... 56 Preliminary Strategic Analysis of Next Generation Fare Payment Systems for Public Transportation system, SEPTA required compliance with EMV standards. EMV is a technology that includes a smart card chip and requires a user PIN for purchases to help protect personal and transaction data.
From page 57...
... Next Generation Transit Fare Payment System Case Studies 57 while performing limited on-board inspections, selling single fares and allowing passengers to replenish their accounts. For SEPTA, this hybrid barrier/barrier-free model for commuter rail was a cost-effective solution.
From page 58...
... 58 Preliminary Strategic Analysis of Next Generation Fare Payment Systems for Public Transportation Sumas. WTA also cooperates with Skagit Transit in neighboring Skagit County, to provide service between Bellingham and Mount Vernon.
From page 59...
... Next Generation Transit Fare Payment System Case Studies 59 WTA's main fare media objective was to migrate away from flash pass. This would address their goals for data capture as well as new fare options.
From page 60...
... 60 Preliminary Strategic Analysis of Next Generation Fare Payment Systems for Public Transportation boxes with a smart card fare system is $2M of which the farebox upgrade was $1.5M. The fare media will be pass-based with no stored value product initially.

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