Mass Transit

NOV 2014

Mass Transit magazine features agency profiles, industry trends, management tips and new product information.

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FARE COLLECTION 24 | Mass Transit | MassTransitmag.com | NOVEMBER 2014 For more information, visit www.MassTransitmag.com/10065851 Vanderhoof said the banking industry uses diferent technol- ogy than that of fare media used by transit operators, so the switch to an open fare payment system means upgrades to a lot of equip- ment. Te agency has to put in card readers capable of reading all diferent credit cards and deb- it cards and mobile devices. Sup- porting these devices also means back-end upgrades to the system and an investment in turnstiles, vending machines, validators and even parking facilities to make sure it's all compatible with the new fare payment system. "A new development is that this upgrade is very expensive, but since we've seen major tran- sit agencies like Chicago, Phila- delphia, Washington, D.C., L.A. and others have gone through the implementation phase and are now in operations with that technology, the cost of that tech- nology is dropping signifcantly," Vanderhoof said. Vanderhoof said new tech- nology is addressing issues with transaction speeds as well. Te transportation industry requires fare data be processed extremely fast, but changes in improvements in the chip design of payment cards in recent years is now ad- dressing this issue. With payment data thef re- ported on large scales in the past year from large North American retailers, some riders and agencies may be concerned with security on an open fare payment system. Vanderhoof said there aren't any issues with security when moving to open fare payment. "Consumers have a lot of pro- tection when it comes to securi- ty when using bank cards. More protection than they may have in the fare media provided by most transit agencies, so frst of all, the payment systems do a really good job of making payment technology MOBILE TICKETING can offer new layers of data to transit agencies to track rider habits that traditional fare media can't. GlobeSherpa

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