Considering the Unbanked in Cashless Fare Payment at Point of Service for Bus/Demand-Response Services (2022)

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74 Account-Based System Transit fare system where the fare medium associates the rider with information held in an account. Value is not carried on the fare medium, as in card-based systems; rather, it is saved in a separate account. Fare processing is typically performed in the transit system’s back office to ensure the rider’s personal information is secure (Wallischeck et al. 2015). Card-Based System The traditional transit fare architecture, where the transit card serves solely as the fare medium. Value is carried on the card and decreases as the rider is granted access to the transit system (Wallischeck et al. 2015). EMV Technical standard primarily used in Europe for smart cards, payment terminals, and ATMs; it originally stood for Europay, Mastercard, Visa, the companies that created the standard. Fare Capping The transit agency limits the maximum amount a rider can pay in a given period. For daily capping, riders never pay more than the total cost of a day pass. Fare Media The instrument(s) accepted by a transit agency that grant riders access to transit services. Examples include cash, tokens, tickets, smart cards, and mobile devices. Fare Product The item customers purchase to use specific transit services. A fare product may be used once, such as a single-ride ticket, or several times, such as a period pass good for unlimited use over a specified timeframe. Mobile Fare Payment Application (App) Also known as a mobile ticketing application. A software app on a smartphone or other elec- tronic device that allows riders to pay for and access public transit services. They are typically downloaded from Google Play for Android devices or the Apple App Store for iOS devices. “One More Trip” Policy A “one more journey” or “one more trip” policy lets customers carry a negative balance for one trip so they have the opportunity to reload. Open-Loop Payment System A fare system that accepts third-party payment media, such as bank cards. This type of system relies on open industry interface standards and specifications. Glossary

Glossary 75   Title VI Title VI of the Civil Rights Act of 1964; in the context of public transit, the FTA provides guid- ance to fixed-route transit providers to ensure “the impacts of service and fare changes are not discriminatory and are distributed equitably to minority and low-income populations.” Transit agencies with 50 or more fixed-route vehicles in peak service in large urbanized areas (popula- tion over 200,000) are instructed to develop written procedures “to evaluate, prior to imple- mentation, any and all service changes that exceed the transit provider’s major service change threshold, as well as all fare changes, to determine whether those changes will have a discrimi- natory impact based on race, color, or national origin.” For more information, see FTA 2018. Unbanked Per the FDIC, an unbanked household is where “no one in the household ha[s] a checking or savings account” (Apaam et al. 2018). Underbanked Per the FDIC, underbanked households “ha[ve] a checking or savings account and used one of the following products or services from an alternative financial services (AFS) provider in the past 12 months: money orders, check cashing, international remittances, payday loans, refund anticipation loans, rent-to-own services, pawnshop loans, or auto title loans” (Apaam et al. 2018). Validation The process or method used to ensure transit fare products are not fraudulent or expired.