Multimodal Fare Payment Integration (2020)

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48 Glossary Term Definition Account-based system A fare system in which customers register their personal information, preferences, fare media, and other information to track their usage, apply for benefits, load or replenish fare value, or employ other func- tions supported by a centralized account. Fare processing is typically performed in the system’s back office to ensure that the customer’s personal information is secure and to apply appropriate fares to their trips. (Okunieff 2017) Card-based system A fare payment system that uses read-write smart cards that store infor- mation about valid fare products (or stored values) and the last several transactions. The card-based system relies on the smart card and smart card reader to process the fare and validity of the media based on fare rules downloaded to the smart card reader. (Okunieff 2017) Closed payment (closed-loop) system A transit fare payment system that uses fare media that can be used only within a single transit system or partnership of transit systems. All proprietary fare payment systems are closed-loop systems. (See also “open payment system” and “proprietary system or design.”) (Wallischeck et al. 2015) Convergence The combination or integration of payment systems from different transportation modes, such as transit and toll or transit and parking. (Wallischeck et al. 2015) EMV A payment method based on a technical standard for smart pay- ment cards and for payment terminals and automated teller machines that can accept them. EMV originally stood for “Europay, Master- Card, and Visa,” the three companies that created the standard. The standard is now managed by EMVCo, a consortium of financial companies. (Wikipedia) Fare media The instruments (cash, token, ticket, fare card, mobile device, etc.) accepted by a transit system to grant riders access to transit services. (Wallischeck et al. 2015) Fare product A contract bought by a customer to use specific transit services. The product may be used once or several times depending on the product type. A single-use ticket may be used only once, whereas a period pass may be used over the specified period for an unlimited number of rides. (Okunieff 2017)

Glossary 49 Term Definition Magnetic stripe card A magnetic stripe card is a type of card capable of storing data by modifying the magnetism of tiny iron-based magnetic particles on a band of magnetic material on the card. The magnetic stripe, some- times called swipe card or magstripe, is read by swiping past a mag- netic reading head. (Okunieff 2017) Mobile payment A point-of-sale payment transaction made through a mobile device (such as a smartphone, smart watch, or other smart device) in which the mobile device functions as a contactless payment card. For the purpose of this report, a web-based or in-app purchase of a transit fare using a mobile device or smartphone is not considered a mobile payment. (Wallischeck et al. 2015) Mobile ticketing A process whereby a transit rider can order, pay for, obtain, and validate a transit ticket using a mobile device such as a smartphone, smart watch, or other mobile device. Mobile ticketing is a separate function from mobile payment. (Wallischeck et al. 2015) Mobile wallet A mobile application that provisions a virtual bank-issued credit, debit, or prepaid card in a mobile device. Sometimes these wallets are called “pays,” e.g., Google Pay, Apple Pay, and Samsung Pay. (Okunieff 2017) Open architecture A system that is nonproprietary and uses open interfaces and standards to enable third-party components to interoperate. (Okunieff 2017) Open payment (open-loop) system An account-based transit fare payment system that is able to accept third-party payment media such as bank cards and mobile devices as its fare media. All open payment systems are both standards- and account-based systems. (Wallischeck et al. 2015) Proprietary system or design A transit fare payment system in which the design and technology are developed and owned by a contracted manufacturer and sold or licensed for use by a transit agency. Proprietary design–based systems tend to have a low level of interoperability. (Wallischeck et al. 2015) Ride hailing A service provided to a person who requests a ride through an app. Examples of ride hailing services include Uber and Lyft. (Okunieff 2017) Mobility as a Service “Mobility-as-a-Service describes a shift away from personally owned modes of transportation and towards mobility solutions that are consumed as a service.” (Wikipedia) Smart card A plastic card with a built-in microprocessor, used typically for electronic processes such as financial transactions and personal identification. (Okunieff 2017) Smartphone A mobile phone that can connect to the Internet and that can receive, download, and transmit data. Most smartphones allow users to download applications (apps), and many are equipped with near-field communication technology. (Wallischeck et al. 2015)

50 Multimodal Fare Payment Integration Term Definition Standards-based system or design A transit fare payment system in which the design and technol- ogy follow public, nonproprietary standards and specifications established for the financial payments industry. Well-managed standards-based systems tend to have a high level of interoper- ability and have been independently tested to confirm compliance. (Wallischeck et al. 2015) Stored value fare card A prepaid fare card that can be programmed or “loaded” with a specific dollar value—or other prepaid fare options—that is then decremented with use. (Wallischeck et al. 2015) System architecture The organization of the components of a transit fare payment system, their relationship to each other, and the rules and processes governing their interaction. (Wallischeck et al. 2015) Unbanked household A household that does not currently have a checking or savings account (as defined by the Federal Deposit Insurance Corporation). (Wallischeck et al. 2015)