t-flex october 2007 workshop the future of fare collection ed oliphant, cfo nashville mta october...
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T-FLEx October 2007 Workshop
The Future of Fare Collection
Ed Oliphant, CFO
Nashville MTA
October 29, 2007
About Nashville MTA 8.5 million passenger trips annually
Fleet of 137 transit buses, 62 paratransit vans
GFI Odyssey Fareboxes
Operate a pulse system with AM and PM peaks
Utilize Smartcard technology through employees ID and the Easy Ride Transit Benefits Program
Beginning AVL implementation, although not necessary for credit card acceptance
Overview What are the issues associated with
accepting open system cards (credit cards) at the customer point of entry on-board buses in an off-line environment?
Impact on Operations
Impact on Maintenance
Impact on Accounting
Cost of Implementation
Operational Pro’s & Cons
Very little bus operator training Faster boarding time Operating off-line vs on-line real time
(AVL) Boarding times will improve as long as it is
in an off-line environment Transaction speed needs to be 300ms or
less Training for Customer Service &
Accounting End of day probe time
Maintenance Issues
Hardware and equipment requirements Upgrade Farebox Software Upgrade probing speed New maintenance procedures
Potential for lost information ?
Accounting Considerations
Picking the 3rd party processor
Farebox software must be able to communicate with 3rd party processor
Transactions should be sent to 3rd party processor daily (not necessarily processed daily)
Processor must acknowledge and confirm receipt of transactions
3rd party processor must provide back-up from transactions processed that can be reconciled to farebox software transactional data
Accounting Considerations continued Level of Risk in Off-line Scenario
How will bad/stolen cards be identified? Immediate validity checking (expiration, card
type) 3rd party processor must be responsible What is farebox capacity for bad carding?
Who manages the Hot List for bad cards?
This process should be automated by 3rd party processor back to farebox software and updated at the farebox during daily probing.
How often should transactions be processed by the processor?
Daily vs some extended period (Aggregation) Impact on transaction fees vs bad card risk
Accounting Considerations continued
Data Security Payment Card Industry Data Security Standards
must be followed (PCI-DSS) Mandatory compliance program Security and confidentiality of customer
information cannot be compromised Prevent internal fraud and scams with security Encryption software is required
Farebox software and 3rd Party Processor must be PCI-DSS compliant.
Subject to annual audits, quarterly network scan or annual self-assessment questionnaire depending on volume of transactions processed
Implementation Cost to Implement
Cost of any new or upgraded hardware
Cost of software upgrades 3rd Party transaction costs
(Aggregation) Training Cost Flow of funds
e-Payment Technology
Farebox
Probing Computer
Network Manager
Link2Gov
Transit Agency
Chase Paymentech
Transit Agency Bank
VPN
ACH
Bad Cards
Bad Cards
Bad Cards
Bad Cards
Bad Cards
What Did Nashville Consider?
Accepting credit cards for micro purchase of single ride tickets ($1.25), All Day Passes ($3.75), their discounted equivalents for youth, elderly and disabled and Night Owl Service ($4.00) (no signature required)
Just like cash fares, a rider will inform the driver which fare they want to purchase
The driver will hit the button associated with the fare desired and then the rider will swipe their card
Other Considerations GFI Genfare and Link-To-Gov software
must be compatible The 3rd party processor must manage
Bad Care List electronically Determining an acceptable number of
days the Transit Agency takes the risk of accepting fraudulent cards
Which credit cards to accept Expanding credit cards to Paratransit
Questions
Thank YouEd Oliphant, CFONashville MTA October 29, 2007
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