Open Fare System
CTA is moving toward a fare system based on open standards for payment
Updated 11/15/2011
The Chicago Transit Board today approved a new, open fare collection system that will benefit customers, improve operations and save money for the CTA.
The new system, set to launch in early 2014, will use “contactless” credit, debit and bank cards, as well as CTA-branded prepaid cards. CTA patrons will simply “tap” their contactless card on a card reader to board trains and buses. (The current Chicago Card and Chicago Card Plus use contactless technology).
The new system is intended to eliminate the multiple magnetic-stripe cards and the proprietary Chicago Card/Chicago Card Plus currently used for fare payments. Those without credit cards or debit cards will be able to purchase prepaid contactless cards at over 1,000 new locations, and cash fares will still be accepted on buses.
The CTA will maintain full control of fare policy, without the responsibility of day-to-day maintenance and collection activities.
Implementation will include a transition period in which all current fare media will be accepted, as well as an extensive public-education campaign.
Chicago will be the first major U.S. city to launch an open fare system.
Benefits
Convenience
For most riders, contactless cards will eliminate the need to carry and maintain separate cards or worry about having exact change. The system will allow riders to use their own credit/debit cards (including cards you may already have), or cell phones that have their own industry-standard contactless chips (commonly known as NFC, or “near-field communication”).
For those who don’t have bank-issued cards, prepaid cards will be available at over 1,000 retail locations at the start of the transition, and 2,000 by the time the system is fully implemented—this far exceeds the 700 locations currently available for purchasing CTA fare media. Our goal is to have retail locations within one-third of a mile from any of our approximately 12,000 bus stops (that’d be less than two full city blocks).
People will still be able to pay with cash on buses.
Efficiencies
This will help improve efficiencies in several areas of the system. Since nearly all entries to our system will be “tap and go,” that’s less time people will spend waiting in queues at turnstiles and less time buses need to sit while people board and pay fares. Magnetic cards have helped with this, but still take time than a contactless transaction.
Fewer vending machines will be needed in busy stations as a result of people being able to use cards they already have, in addition to the significant increase in places to purchase or add value to prepaid cards.
The way this contract is designed will offload much of the management of fare collection to private partners, but still allow CTA to continue maintaining full control of its fare policy (meaning that it won’t be controlled by a private entity) without the responsibility (and expense) of day-to-day maintenance and collection activities. This allows us to focus our efforts on our core mission: providing convenient, reliable service.
Cost savings
There are a few ways that this approach will save CTA money:
- Eliminates costs of creating/distributing/managing CTA cards
- Reduces fare maintenance and collection costs
- Resolves need to upgrade/maintain current fare-collection equipment that is past its useful life
- Minimizes risk while maximizing revenues
- Estimated savings over the term of agreement is over $50 million
Q&A
Note: These are just a few of the questions we expect you to have. We’ll be adding more questions and answering them here in the coming days.
Q: What is an Open Fare system?
A: An Open Fare system is a non-proprietary software and hardware system that will allow customers to use their personal bank-issued credit and debit cards, NFC-enabled mobile phones, contactless general-purpose reloadable and prepaid cards for fare payment.
Q: What is a contactless card?
A: Contactless cards store data on a microchip embedded in the card’s plastic. (as compared to a traditional credit card that uses a magnetic stripe that must be physically swiped through a card reader.) A contactless card transmits data via a secure frequency to a card reader when the cardholder “taps” their card. They are currently used in multiple retail settings, and major banks are switching from traditional cards to contactless cards due to increased security, less card damage and quicker payment times.
Q: Will I have to to get new, contactless cards, or does my current credit/debit cards already contain chips that allow for that?
A: That depends on the customer’s commercial bank. Customers will need cards with an embedded smart chip. Many cards issued by commercial banks already have chips, and they are becoming more widespread in the marketplace. Customers are welcome to inquire with their commercial bank to either request and/or ask when the functionality will be available.
Q: What will I need to do to get my credit card to work?
A: It must have a contactless chip within it to work at a turnstile.
Q: When will Chicago Cards, Chicago Card Plus cards and magnetic strip transit cards disappear?
A: Existing fare media will continue to be accepted until the new system is fully operational. CTA plans a significant public-outreach campaign prior to and during the transition to inform and assist customers. Initial projections of transition are early 2014.
Q: I don’t have a credit or debit card. What are my options?
A: Several options will be available:
- “General purpose reloadable” cards that function like standard Visa or MasterCard credit card, but users will not have a credit account. The cards can be used for any retail purchase, including CTA. There will be no fees for use on CTA, but standard market-based fees will be charged for non-transit uses.
- “Transit-only reloadable” card that functions like existing Chicago Card/Chicago Card Plus
- Cash can be loaded onto them
- Will be used for all special programs (e.g. Seniors)
- Single-ride card
- Cash on buses
Q: Where will I be able to buy prepaid cards?
A: Prepaid cards will be available at over 1,000 retail locations at the start of the transition and over 2,000 locations by full implementation (up from 700 current locations). The goal is to provide availability at retail locations within a 1/3-mile of CTA’s 12,000 bus stops.
Q: Will the prepaid cards contain a set amount of value? Will different denominations be available for purchase?
A: Just as today, the customer will determine the value they decide to put on the card.
Q: Will the prepaid cards have the capability of being recharged? If not, how do you avoid having a small balance (not enough to pay for a fare) left on each card?
A: Yes, all prepaid cards will be rechargeable and are fee-free when used for purchasing transit products.
Q: How will reduced fares work with the credit/debit and prepaid cards? Will the cards require the continued use of a RTA reduced-fare permit?
A: RTA issued fare media will be contactless moving forward. Reduced fares will require registration of the card to ensure proper use and inclusion in the program.
Q: I have a senior/reduced fare card. What will I need to do?
A: At the discretion of the RTA, a new card could be issued during the transition so that eligible seniors are properly equipped to use the CTA’s system. More information will become available as the transition approaches in 2013.
Q: Will there be any limits on what type of credit or debit cards can be used to pay fares on CTA?
A: No, all major card brands are accepted (Visa, MasterCard, Discover and American Express). In order for it to be used on the new system, it must be contactless.
Q: Will there be a feature like Chicago Card Plus in which an account is “prepaid” with a set amount every the value goes below a certain threshold?
A: Yes
Q: Will credit/debit card owners be protected from responsibility for fraudulent use if they lose their cards?
A: Customers will have the same fraud protection already offered by their credit card provider.