Stored-value products

Stored-value products enable automatic fare validation without the intervention of the passenger or an agent, though some systems may require an agent to ‘initialize’ the ticket before it can be used as a security measure against theft. However the passenger needs to know the value stored in his ticket, and the maximum fare that could be payable for his trip if a decrementing system is used.

The types of stored value products, and their methods of use, include:

Magnetic-stripe cards

With magnetic-stripe cards, the value is stored in a strip built into the card, which can then be read, decremented, and written to, depending on the embedded capability. The security of the card, and its vulnerability to damage, is dependent upon the technology used. The cards typically have a capability for only a limited number of validations, and the cost of the ticket must be absorbed within their applicable purchase price.
Passengers insert the cards into a ticket barrier or a freestanding in-vehicle card reader to verify the validity of the card for travel. In some fare collection systems, particularly where flat fares apply, the reader retains the ticket to prevent its re-use. In others the reader decrements the value for the trip being undertaken, and then returns the ticket to the passenger. In zone fare systems and multi-fare systems, the passenger will normally be required to revalidate the ticket on exit from the vehicle or system to ensure that only the correct fare has been charged.

Memory cards

Memory cards, or smart-paper tickets, are an electronic version of a magnetic-stripe card but incorporating an RFId capability for near-field communication with the reader. They hold a small number of travel units, which are then decremented (either singly or in multiples, depending on the fare structure) with each use. These cards cannot be written to, and so can’t take advantage of more complex fare products and interchange capabilities.
Passenger use of the card is the same as far a magnetic-stripe card, but the card reader is usually designed for compatible use with smart-cards. The cost of the card again has to be absorbed within the fares for which it is valid, and so the cards typically carry the value for several trips and charge these at premium fares. However they enable access for the casual user or visitor to a transport system using smart-card fare collection.

Smart cards

Smart cards incorporates a computer chip and some means of near-field communication such as RFId. Standard cards require close proximity to the reader for data transmission (tap in, tap out), but more advanced systems don’t require the card to be presented to the reader (be in, be out). The computer chip can hold data files, authorize transactions, and record their detail.

Passengers ‘check-in’ their cards on boarding by tapping onto a station gate-mounted or freestanding in-vehicle card reader to demonstrate funds availability and the validity of travel. The card reader then decrements the value for the trip being undertaken, and normally writes back data on the transaction and its location. In zone fare systems and multi-fare systems, the original decrement is typically the maximum applicable fare on the route, with a rebate paid back on to the card at exit validation for any used travel value. However some systems rely on the passenger selecting the applicable fare from a small range of options, but this both slows the access process and is more vulnerable to over-riding fraud.