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

Implementing Contactless Fare Collection Systems

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?


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

A Fare Collection System


Fare System Parameters

• Fare policy

• Fare structure

• Fare technology

FarePolicy

FareStructure

FareTechnology

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


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


Single Agency System

Agency Central System

Data Concentrator

Card Reload Terminal

Bus or Station Validators

Smart Media

Data Concentrator

CID

PICC

Back-Office Infrastructure

Data Concentrator

Station Validators

Bus Validators

Card Reload

Terminal

Card Reload

Terminal


Data Concentrator

Card Reload

Terminal

Bus Validators

Smart Media

Data Concentrator

CID

PICC

Data Concentrator


Regional Central System

Regional

Agency System

Back-Office Infrastructure

Video

Sun Tran – Tucson, AZ


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)


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


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

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


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)


Account-based Fare Processing

Settlement Message Settlement MessageSettlement Message

Transaction TransactionTransaction

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


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

Video

TfL – London, UK


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


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

Video

MIT – Boston, MA

Smartcards Throughout US


Considerations – Agency

• Fare system rules

• Revenue collection and management

• Customer service

• Reporting

• Flexibility and capability to evolve

• Marketing


Considerations – Security

• General security

Industry standard security incorporating 3DES or AES

• PCI DSS (Payment Card Industry Data Security Standard)

For credit cards


Considerations – Customer

• Media/device acquisition

• Fare acquisition (initial and reload)

• Privacy (registered vs. anonymous)


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


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”


Project Participants

• System owner

Stakeholders

Project champion

• Technical staff

• Development team

Consultant/engineering team

Equipment provider/systems integrator


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


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


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


Development Team

• Perform the detailed design

• Develop any necessary custom hardware or software

• Integrate COTS products

• Verify the system as a whole


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


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

V Diagram with Project ManagementTransportation

PlanningProgramming/

Budgeting

Project Initiation

Preliminary Engineering

Plans, Specs, & Est.

ConstructionProject

Closeout

Operations & Maintenance

Changes & Upgrades

Retirement/ Replacement


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


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


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


Questions?

Danielle Pinkus

[email protected]

732.932.1700, ext. 221