Transit Agency Issuing Prepaid Cards for Fare Payment
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Solution Overview
Problem
The transit industry faces challenges in providing fare payment solutions for patrons who do not possess or wish to use bank-issued contactless payment cards, as they are often excluded from discounts and features, and existing prepaid cards come with high issuance and usage fees.
Innovation Solution
A transit authority or access agency acts as the issuer of prepaid portable consumer devices, controlling card issuance, authorization, and fees, allowing for reduced costs and fees for patrons, while generating revenue through fee assessment and retail usage.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If bank-issued payment cards are used for transit fare payment, then transaction speed and financial loss reduction are improved, but access is restricted to patrons who possess or can acquire such cards
Solution Approach 1:
The patent introduces a prepaid card system as an intermediary between the transit agency and patrons. This intermediary product combines the speed benefits of electronic payment with broader accessibility, allowing patrons without bank cards to still access fare payment through the prepaid card network.
Solution Approach 2:
The prepaid card system serves multiple functions: it provides fast electronic transaction processing like bank cards, while also being accessible to patrons without bank accounts. The system universalizes fare payment capability across different patron demographics while maintaining transaction efficiency.
2Adaptability or versatility
If existing prepaid cards are used for transit fare payment, then fare payment accessibility is improved, but issuance and usage fees are high
Solution Approach 1:
The patent changes the fee parameters of the prepaid card system by having the transit agency subsidize issuance and usage fees. This parameter change makes the system more affordable for patrons while maintaining the accessibility benefits of prepaid cards.
Solution Approach 2:
The patent converts the potentially harmful high fees into a benefit by having the transit agency absorb these costs as part of the fare collection system. The fees that would normally be a burden to patrons become a mechanism for agency revenue collection and system sustainability.
3Reliability
If transit agency acts as issuer of prepaid products, then control over issuance and fees is improved, but system complexity increases
Solution Approach 1:
The patent uses a third-party processor as an intermediary to handle the complex technical aspects of prepaid card processing. This mediator absorbs the system complexity while allowing the transit agency to maintain reliable control over issuance and authorization through simplified interfaces.
Solution Approach 2:
The prepaid card system enables self-service fare payment for patrons, reducing the need for agency staff intervention. The automated card processing and balance management reduce operational complexity while maintaining reliable control over the fare collection process.
Data Source
AI summary
Described is processing for requested user access, starting with receiving transaction data from a portable consumer device presented by the user at a gate access device of an access agency for the requested access. The transaction data from the gate access device is processed and a fee amount for the requested access is determined. The processing next involves determining an account balance in accordance with the determined fee amount and a prior balance amount associated with the portable consumer device, and reconciling the determined account balance and account data associated with the portable consumer device at a processing computer of the access agency such that the access request is indicated as either approved or declined.