Interchange/Transfer Rebate
Description/Objective
The Interchange/Transfer Rebate application is operational only where there are agreements for interchange/transfer between services. These agreements may facilitate interchange/transfer:
- on some or all modes in a service area
- only for interchange/transfer between services on the same mode
- only for interchange/transfer between services of the same operator or group of operators
Interchange/Transfer Rebate is a specific type of fare product. For each interchange/transfer, a new applicable fare is charged, less an agreed rebate amount. For example, the normal applicable fare for the second part of the trip would be $2.00. When it is detected that the trip qualifies as an interchange/transfer trip, a rebate of 40 cent is applied and an amount of $1.60 is payable/deducted/charged.
The primary reason for implementing an Interchange/Transfer Rebate is to allow interchange/ transfer between services, operators or modes without having to:
a) harmonise the tariff structures and prices of the different modes, operators or routes; or
b) develop complex point-to-point fare tables for all possible origin-destination pairs in the service areas
In essence, it facilitates Integrated Ticketing without having to progress to full Integrated Tariffs.
Interchange/Transfer Rebates may be available on all fare products, or only on designated fare products.
The Interchange/Transfer Rebate application has the following main functions:
- To determine whether a trip meets the criteria to be considered as an interchange/transfer trip (this may be determined by the Interchange/Transfer Authority function)
- To determine whether a presented fare product is valid for the Interchange/Transfer Rebate for the type of interchange/transfer being undertaken
- If not entitled, to advise the fare calculation and charging processes that no Rebate should be applied
- If entitled to Interchange/Transfer Rebate, to advise the fare calculation and charging processes of the value of Rebate to be applied
Technologies, data and resources
Interchange/Transfer Rebate applications consist of software processes. They are conducted within the fare collection equipment. In essence, they are modules/routines that are called down by the active fare collection processes to determine whether a Rebate is to be applied, and if so, which value/category should be applied.
The data requirements are:
- Identification of the route, boarding and alighting points, customer type, fare product, and interchange/transfer conditions relating to the trip being undertaken
- Data about of previous trip(s) that may be taken into account for interchange/transfer rules and fare calculation
- Rules for Interchange/Transfer Rebate for the various fare products
- Values for the Interchange/Transfer Rebate
- Data exchange with upstream and downstream fare collection processes
Advantages and Cautions
The primary advantages of Interchange/Transfer Rebate applications are to:
- facilitate interchange/transfer between services, operators and modes without having to integrate the fare structures or prices
- ensure that the Rebate rules are correctly applied and the correct fare determined
- support the automation of the fare collection process
The principal cautions in relation to Interchange/Transfer Rebate are:
- while the Rebate rules are usually quite simple, problems can arise over how the revenue foregone should be allocated among the various stakeholders. Some operators may fear that they lose out, and demand extensive data capture and analysis to support their case and seek some rebalancing payments or compensation
Relevant Case Studies
Prince William County
Dublin (please see Fare Collection Toolkit)
Other relevant example: Singapore