Implementing Contactless
Fare Collection Systems
Contactless Fare Collection Systems
Questions
• What are you hoping to learn?
• Topics you would like to discuss?
• Are yo...
Contactless Fare Collection Systems
Agenda
• Relationships among fare policy, fare structure,
and technology
• Components ...
A Fare Collection System
Contactless Fare Collection Systems
Fare System Parameters
• Fare policy
• Fare structure
• Fare technology
Fare
Policy
Fa...
Magnetic Contactless
Pros • Cards are inexpensive
• Purchase from TVM or
farebox
• Unused value as revenue to
agency
• Med...
Contactless Fare Collection Systems
Contactless System Components
• PICC – Proximity integrated circuit card
• CID – Card ...
Contactless Fare Collection Systems
Single Agency System
Agency Central
System
Data
Concentrator
Card Reload
Terminal
Bus ...
Data
Concentrator
Station
Validators
Bus
Validators
Card
Reload
Terminal
Card
Reload
Terminal
Agency
Central
System
Data
C...
Video
Sun Tran – Tucson, AZ
Contactless Fare Collection Systems
Role of Standards
Applicable standards
• CFMS (data format for transit)
• ISO 14443 (d...
Contactless Fare Collection Systems
The CFMS Standard
• Applies to contactless fare collection systems for
transit
• Defin...
Contactless Fare Collection Systems
Fare Payment Processing
• Device-based fare processing
 Front-end processing
 Media ...
Device-based Fare Processing
CID determines
if PICC content
is valid
CID identifies
PICC holder
type
CID identifies
what’s...
Contactless Fare Collection Systems
Ventura County, CA
• Go Ventura smart card launched in 2002
 135 buses enabled with r...
Contactless Fare Collection Systems
Account-based Fare Processing
Settlement Message Settlement MessageSettlement
Message
...
Contactless Fare Collection Systems
Account-based Options
• Open Payments Systems
 Example (pilot) – NY MTA/NJ Transit
 ...
Video
TfL – London, UK
Contactless Fare Collection Systems
Hybrid Systems
• Combine device based and account based system
features
• Reader commu...
Contactless Fare Collection Systems
Mobile Devices (Near Field Communication)
• Compatible with most existing contactless
...
Video
MIT – Boston, MA
Smartcards Throughout US
Contactless Fare Collection Systems
Considerations – Agency
• Fare system rules
• Revenue collection and management
• Cust...
Contactless Fare Collection Systems
Considerations – Security
• General security
 Industry standard security incorporatin...
Contactless Fare Collection Systems
Considerations – Customer
• Media/device acquisition
• Fare acquisition (initial and r...
Contactless Fare Collection Systems
Considerations – Cost Factors
• Fare media distribution
(PICC )
• Reader (CID)
• Back-...
Contactless Fare Collection Systems
Transit Agency Recommendations
• Neither cost nor labor savings
 Probably requires ad...
Contactless Fare Collection Systems
Project Participants
• System owner
 Stakeholders
 Project champion
• Technical staf...
Contactless Fare Collection Systems
Stakeholder Involvement
• Generate and assess needs, problems, and concerns
• Discuss ...
Contactless Fare Collection Systems
The Role of a Project Champion
Successful implementation requires a champion
through t...
Contactless Fare Collection Systems
Technical Staff
• Includes:
 Consultant/engineering team
 Equipment provider/systems...
Contactless Fare Collection Systems
Development Team
• Perform the detailed design
• Develop any necessary custom hardware...
Contactless Fare Collection Systems
What is Systems Engineering?
• US DOT Policy
 http://ops.fhwa.dot.gov/publications/se...
Contactless Fare Collection Systems
Benefits of Systems Engineering
• Reduces risk of schedule and cost overruns
• Increas...
V Diagram with Project Management
Transportation
Planning
Programming/
Budgeting
Project
Initiation
Preliminary
Engineerin...
Contactless Fare Collection Systems
What Have We Learned?
• You need to understand your business before
you can define you...
Contactless Fare Collection Systems
Moving Forward
• Case studies demonstrate there is no “standard”
approach to implement...
Contactless Fare Collection Systems
Remember the Purpose of Mass Transit
• Fare collection is not an end to itself
• Our m...
Contactless Fare Collection Systems
Questions?
Danielle Pinkus
dpinkus@rutgers.edu
732.932.1700, ext. 221
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Implementing Contactless Fare Collection Systems - Danielle Pinkus, Instructional Designer, National Transit Institute (NTI)

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Implementing Contactless Fare Collection Systems - Danielle Pinkus, Instructional Designer, National Transit Institute (NTI)

  1. 1. Implementing Contactless Fare Collection Systems
  2. 2. Contactless Fare Collection Systems Questions • What are you hoping to learn? • Topics you would like to discuss? • Are you currently using a cash/paper/token system?  Magnetic?
  3. 3. Contactless Fare Collection Systems Agenda • Relationships among fare policy, fare structure, and technology • Components of contactless fare collection systems and standards • Fare processing and contactless models • Project considerations • Managing a contactless fare collection project • Keys to success
  4. 4. A Fare Collection System
  5. 5. Contactless Fare Collection Systems Fare System Parameters • Fare policy • Fare structure • Fare technology Fare Policy Fare Structure Fare Technology
  6. 6. Magnetic Contactless Pros • Cards are inexpensive • Purchase from TVM or farebox • Unused value as revenue to agency • Media can interface with multi- applications and partners • Expanded data capacity and enhanced security features • Spread system cost among partners • Interoperability/multi-contracts; e-Purse • Systematic validation • Low cost hardware maintenance • High reliability • Flexibility in use and application Cons • Data capacity is limited • Limited support for multiple agency pass or multi-ride options • Card readers require a lot of maintenance, are vulnerable to foreign objects, and are more expensive than contactless readers • Traditional smart media is more costly to produce than paper • Without standardized interfaces, it is complicated to integrate with other regions
  7. 7. Contactless Fare Collection Systems Contactless System Components • PICC – Proximity integrated circuit card • CID – Card interface device/card reader • Data concentrator • Back-office infrastructure  Agency central system  Regional central system (if applicable) REGIONAL CENTRAL SYSTEM AGENCY CENTRAL SYSTEM DEVICE (CID) PICC (Smart Card) DEPOT/STATION COMPUTER
  8. 8. Contactless Fare Collection Systems Single Agency System Agency Central System Data Concentrator Card Reload Terminal Bus or Station Validators Smart Media Data Concentrator CID PICC Back-Office Infrastructure
  9. 9. Data Concentrator Station Validators Bus Validators Card Reload Terminal Card Reload Terminal Agency Central System Data Concentrator Card Reload Terminal Bus Validators Smart Media Data Concentrator CID PICC Data Concentrator Agency Central System Regional Central System Regional Agency System Back-Office Infrastructure
  10. 10. Video Sun Tran – Tucson, AZ
  11. 11. Contactless Fare Collection Systems Role of Standards Applicable standards • CFMS (data format for transit) • ISO 14443 (data communication) • PCI DSS (banking security) • ISO 7816 (card recognition/identification) • FCC Part 15 (radio frequency) • ENV 1545 (data format with banking)
  12. 12. Contactless Fare Collection Systems The CFMS Standard • Applies to contactless fare collection systems for transit • Defines the organization of data and structure of messages used to operate a fare system • Accommodates both agency-specific and regional fare products • www.aptastandards.com
  13. 13. Contactless Fare Collection Systems Fare Payment Processing • Device-based fare processing  Front-end processing  Media and reader conduct all fare collection processing • Account-based fare processing  Back-end processing  Media and reader communicate with each other and further communicate with back-office system for authentication and authorization
  14. 14. Device-based Fare Processing CID determines if PICC content is valid CID identifies PICC holder type CID identifies what’s on the PICC CID records transaction on PICC CID communicates with PICC Customer places PICC near CID Within 200-300 milliseconds CID carries out transaction
  15. 15. Contactless Fare Collection Systems Ventura County, CA • Go Ventura smart card launched in 2002  135 buses enabled with reader • Maintenance, management, and clearinghouse all performed in-house • Data uploaded at bus depot nightly • Partnership with California State University • Project costs  $1.8 million startup; $600,000 through implementation; $220,000 per year (O&M and Admin)
  16. 16. Contactless Fare Collection Systems Account-based Fare Processing Settlement Message Settlement MessageSettlement Message Transaction TransactionTransaction Authorization Response Authorization Response Authorization Response Authorization Request Authorization Request Authorization Request Card Interface Device (CID) Merchant Acquirer (data processor) Payment Brands (e.g., VISA, AMEX) Card Issuer (e.g., bank of credit card) Merchant Bank ($$ from credit card transaction) PICC Customer places PICC near CID
  17. 17. Contactless Fare Collection Systems Account-based Options • Open Payments Systems  Example (pilot) – NY MTA/NJ Transit  System that uses bankcards or branded cards (Visa, MasterCard, American Express, etc.) as the fare media • Credential Based Account Systems  Example – Salt Lake City, UT  Any number of different compatible contactless cards (student or corporate IDs, access security cards, etc.) used as customer credentials and linked to accounts maintained by the back office
  18. 18. Video TfL – London, UK
  19. 19. Contactless Fare Collection Systems Hybrid Systems • Combine device based and account based system features • Reader communicates with 2 different media (stored-value card and credit/debit card)  Rules established for reader by agency • Examples:  Passes stored on card, pay as you go by bankcard  Stored value on card, passes through back office accounts
  20. 20. Contactless Fare Collection Systems Mobile Devices (Near Field Communication) • Compatible with most existing contactless infrastructure already in use for public transportation and payment • NFC device can communicate with both existing ISO 14443 smart media and readers as well as with FeliCa smartcards and readers • Today, NFC is primarily aimed at usage in mobile phones, but can also be embedded in other devices • San Francisco, CA – pilot
  21. 21. Video MIT – Boston, MA
  22. 22. Smartcards Throughout US
  23. 23. Contactless Fare Collection Systems Considerations – Agency • Fare system rules • Revenue collection and management • Customer service • Reporting • Flexibility and capability to evolve • Marketing
  24. 24. Contactless Fare Collection Systems Considerations – Security • General security  Industry standard security incorporating 3DES or AES • PCI DSS (Payment Card Industry Data Security Standard)  For credit cards
  25. 25. Contactless Fare Collection Systems Considerations – Customer • Media/device acquisition • Fare acquisition (initial and reload) • Privacy (registered vs. anonymous)
  26. 26. Contactless Fare Collection Systems Considerations – Cost Factors • Fare media distribution (PICC ) • Reader (CID) • Back-end processing and communications • Support • Equipment management application • System management application • Processing costs • Network infrastructure • Time to implement • Responsibility for lost revenue
  27. 27. Contactless Fare Collection Systems Transit Agency Recommendations • Neither cost nor labor savings  Probably requires additional staff due to IT element and database administration • This type of project is for the customer, but it allows you to receive ridership data with APC integration to help make future decisions • Opens door for regional fare discussions • Cost savings slogan – “Simplify Operations”
  28. 28. Contactless Fare Collection Systems Project Participants • System owner  Stakeholders  Project champion • Technical staff • Development team  Consultant/engineering team  Equipment provider/systems integrator
  29. 29. Contactless Fare Collection Systems Stakeholder Involvement • Generate and assess needs, problems, and concerns • Discuss needs of all stakeholders with other stakeholders • Make suggestions on how vital needs can be satisfied cost-effectively • Prioritize the collective needs of all stakeholders • Select the needs and address how they are handled • Review the details of how the needs will be satisfied at each phase in the project
  30. 30. Contactless Fare Collection Systems The Role of a Project Champion Successful implementation requires a champion through the entire project life cycle • Gains executive and Board support • Empowers project team • Removes organizational barriers • Delivers funding • Connects with community to gain support for the project
  31. 31. Contactless Fare Collection Systems Technical Staff • Includes:  Consultant/engineering team  Equipment provider/systems integrator • Defines requirements and the project architecture • Prepares the RFP or other system procurement documents • Assists in the review of proposals • Provides independent review services (independent verification and validation) • Provides technical assistance to the project owner during the life cycle of a fare collection system
  32. 32. Contactless Fare Collection Systems Development Team • Perform the detailed design • Develop any necessary custom hardware or software • Integrate COTS products • Verify the system as a whole
  33. 33. Contactless Fare Collection Systems What is Systems Engineering? • US DOT Policy  http://ops.fhwa.dot.gov/publications/seitsguide/section2.htm  http://www.fhwa.dot.gov/legsregs/directives/fapg/cfr0940.htm • Interdisciplinary approach • Structured development process • Defines needs and functionality • Considers the problem/need throughout the entire lifecycle process
  34. 34. Contactless Fare Collection Systems Benefits of Systems Engineering • Reduces risk of schedule and cost overruns • Increases likelihood that system will meet user needs • Improves stakeholder participation • More adaptable/resilient systems • Verifies functionality, resulting in fewer defects • Better documentation • Standardized approach • Federal guidelines may require the use of SE
  35. 35. V Diagram with Project Management Transportation Planning Programming/ Budgeting Project Initiation Preliminary Engineering Plans, Specs, & Est. Construction Project Closeout Operations & Maintenance Changes & Upgrades Retirement/ Replacement
  36. 36. Contactless Fare Collection Systems What Have We Learned? • You need to understand your business before you can define your needs • Your business should use appropriate processes, practices, and technologies to run as effectively and efficiently as possible • Familiarity with available payment models, technology evolution (e.g., NFC), partnership opportunities, etc. ensures the vision for your agency is not limited by the “it can’t be done” mindset
  37. 37. Contactless Fare Collection Systems Moving Forward • Case studies demonstrate there is no “standard” approach to implementing contactless fare collection systems  However, techniques such as Systems Engineering enable you to not re-invent the wheel (this is a standard tool) • Without an influential project champion, project success is unlikely • Manage expectations – implementing contactless fare collection systems is a lot of work and will require the commitment of agency personnel resources
  38. 38. Contactless Fare Collection Systems Remember the Purpose of Mass Transit • Fare collection is not an end to itself • Our main purpose is to transport people • Focus is on customer needs being met for any system implementation • Understand the big picture – the relationship between fare collection and the rest of the agency’s activities, as well as between the various facets of implementing a contactless fare collection system
  39. 39. Contactless Fare Collection Systems Questions? Danielle Pinkus dpinkus@rutgers.edu 732.932.1700, ext. 221

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