From the New York Public Transit Industry 2010 Fall Conference & Trade Show.

1. Implementing Contactless
Fare Collection Systems

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. 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. A Fare Collection System

5. Contactless Fare Collection Systems
Fare System Parameters
• Fare policy
• Fare structure
• Fare technology
Fare
Policy
Fare
Structure
Fare
Technology

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. 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. 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. 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. Video
Sun Tran – Tucson, AZ

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. 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. 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. 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. 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. 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. 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. Video
TfL – London, UK

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. 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. Video
MIT – Boston, MA

22. Smartcards Throughout US

23. Contactless Fare Collection Systems
Considerations – Agency
• Fare system rules
• Revenue collection and management
• Customer service
• Reporting
• Flexibility and capability to evolve
• Marketing

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. Contactless Fare Collection Systems
Considerations – Customer
• Media/device acquisition
• Fare acquisition (initial and reload)
• Privacy (registered vs. anonymous)

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. 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. Contactless Fare Collection Systems
Project Participants
• System owner
 Stakeholders
 Project champion
• Technical staff
• Development team
 Consultant/engineering team
 Equipment provider/systems integrator

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. Contactless Fare Collection Systems
Questions?
Danielle Pinkus
dpinkus@rutgers.edu
732.932.1700, ext. 221