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Transit


Metro's real reason for eliminating paper transfers

Metro is eliminating paper transfers as of January 4th. According to this presentation before the Customer Service Operations and Safety (CSOS) Committee of the WMATA Board, 25% of bus riders use a bus paper transfer and 2% use a rail paper transfer, compared with 6% of riders who use a SmarTrip card to transfer between buses.


An unused bus transfer. Photo by mindgutter on Flickr.
If you only read the official press releases, you'd get the impression that the principal reason Metro is doing this is to save money on printing the paper transfers, since that aspect of it has a dollar figure attached to it:
SmarTrip® also makes transferring easier. And it saves Metro - and you, our customer - money on paper and printing. That's why we're discontinuing the paper transfers.

Eliminating paper transfers will save Metro about $350,000 a year for the cost of paper and printing, plus expenses associated with the repair and maintenance of the old transfer machines in stations. It also is expected to minimize fraud and abuse of paper transfers by individuals who sell or give away their transfers to other riders, and reduce assaults on bus operators by riders who have disputes with operators about transfers.

However, according to the presentation, that $350,000 savings is dwarfed by two other effects: more payments by riders who don't use SmarTrip, and reduced fraud. Between the two, Metro expects to bring in $5 million more per year in revenue.

Some people just won't end up getting a Smartrip card, despite their increasing availability and Metro's efforts to distribute them. Riders without SmarTrips will have to pay full fare when transferring.

As for fraud, paper transfers are frequently resold on the black market, either individually or by the book. More people board Metrobus using a paper transfer than there are cash riders. Meanwhile, there are only one-third as many SmarTrip transfers as SmarTrip cash transactions. Does this imply that two-thirds of paper transfer uses are fraudulent? That seems almost impossibly high.

Other transit systems realized huge revenue gains when they eliminated paper transfers. According to Metro, Boston earned $14 million more in revenue after making the change, and Chicago $17 million. Metro is looking forward to a net revenue gain of $9 million over two years after accounting for the cost of SmarTrip cards, customer communications and other expenses.

Metro should just level with the community and say that some people are defrauding the system to the tune of almost $5 million per year. That buys a lot of SmarTrip cards.

Cross-posted on Infosnack.

Comments

Looks like it's time for me to buckle down and get a SmarTrip, even though I'm rarely in the area these days. Especially with no paper transfers it'll probably save me money long-term.

by Adam on Nov 3, 2008 8:50 am  (link)

I had a most amazing experience recently with paper transfer fraud. I had just boarded the bus and a man who appeared to be homeless was trying to board the bus as well. The driver opened the door for him, gave him a transfer, and told him to ride the next bus. He then told some tourists who were up front that it is not worth having the guy on HIS bus because he would be loud, or would smell bad, and he knew he'd be satisfied with the transfer.

by Melissa on Nov 3, 2008 9:39 am  (link)

This is a good move by WMATA, in my opinion. SmarTrip cards allow passengers to board buses a lot faster. Because I use a SmarTrip card my fares are always paid... I wonder sometimes when I see someone board a bus with a crumpled piece of transfer paper that drivers often do not check for validity. Those that have always paid their fair share will have nothing to worry about.

by Transport on Nov 3, 2008 9:42 am  (link)

I have long suspected that the paper transfer racket was one big fraud. People board buses, just waive a piece of paper, which typically looks to be weeks old, and walk by. If that were the only reason they were moving away from them, that would be good enough for me.

by Reid on Nov 3, 2008 9:44 am  (link)

Transport: Except when you're boarding with a negative balance smartrip card and the driver isn't paying much attention. The farebox gives the same beep and doesn't deduct from your account, giving you a free ride unless the driver notices the balance on the card. I've tried some google searches for this but I can't find the article or blog comment I read it in.

WMATA did cite other reasons for the move to Smartrip and no paper transfers (get rid of rail transfer machines, faster boarding, fewer conflicts between riders and operators over "questionable" transfers), but they devoted more slides to the revenue impact than any other effect.

by Michael P on Nov 3, 2008 10:23 am  (link)

A friend just got back from Portland OR. He said the tram system there is all on the "honor system" (i.e., you don't have to present a ticket to get on board.) However, they have periodic checks ... and if you get caught having boarded without a pass, there's something like a $500 fine. I wonder if that would work here ... ? It sounds like a great idea.

by Lance on Nov 3, 2008 11:08 am  (link)

That's how the DC Circulator works in part. You can buy a day pass at a meter and board at the back door without showing it to anyone. You can also board with a monthly pass or transfer (until 1/4/09?) at the back door.

See here:

Avoid the lines and board through any door if you have a Circulator pass, a Metrobus transfer, DC Student Travel Card, or a Circulator transfer. Cash, SmarTripTM and Metrorail transfer riders must enter through the front door to pay at the farebox.

Be sure to hold onto your proof of payment (ticket, transfer, pass, or SmarTripTM card) while riding the Circulator. Fare checkers will board the Circulator at random stops and times throughout the day to verify that you have paid for your Circulator ride. The $1 fare is the least expensive in town, so don't get caught without paying. There's a hefty fine for scofflaws!

by Michael P on Nov 3, 2008 11:15 am  (link)

One other point I'd like to make is that I don't really care about tourists. If tourist are here for long enough they but a Smartrip card. I have an Oyster card and I only visit London every two to three years. The fare policy on a system that is strapped for cash should be to reward frequent riders with discounts and not the occasional tourist who doesn't even pay all the taxes I do to support the system.

by Dharm on Nov 3, 2008 12:08 pm  (link)

at my bus stop in the morning, there is always someone selling transfers from a book of transfers.

nearly everyone gets on with a transfer. it would not surprise me if 2/3 were frauds.

by sean on Nov 3, 2008 12:54 pm  (link)

The Prague tram and subway works on the same type of honor system and seems to work fairly well. They enforce pretty heavily, though, and that's the key. Metro can't even keep people from eating and drinking on the trains.

by Distantantennas on Nov 3, 2008 3:14 pm  (link)

Most new LRT systems in the US use the proof of payment system mentioned above. One of the benefits is that they don't have to maintain fare gates and similar equipment. However, the rates of abuse are relatively high in many cases.

by Alex B. on Nov 3, 2008 3:25 pm  (link)

The report I read from the Transit Cooperative Research Program (available here as publication R-80, free registration required) stated that cheating rates were in the 0-6% range (except for one data point) but that enforcement (random and periodic 100% sweeps) was required to keep it that way.

I doubt WMATA would be able to keep an enforcement program going for long without accusations of (1) racism or (2) being too harsh on poorer people. Not that the poor or minorities would cheat any more than average, just that it would be hard to avoid such accusations.

Would WMATA be able to fine someone $500 for transit fare stealing and make the fine stick?

by Michael P on Nov 3, 2008 4:14 pm  (link)

Heres one thing i can never get an answer to when this comes up, what about the school students that use school tokens.

There are ten in a pack some students dont use the pass because not economical, some have parents that drive them to school some times etc. what happens to them is metro going to have 20 in a pack now because i recall lots of students catching more than one bus to get to school.

So this does disadvantage some riders, and since metro wants to get rid of it to save money how about dropping the fare back to $ 1.25

by KK on Nov 3, 2008 4:37 pm  (link)

KK, the bus fare is a $1.25 if you use Smartrip. It's only $1.35 for those who use cash.

by Dharm on Nov 3, 2008 5:06 pm  (link)

Dharm, I know how much the fare is I ride the bus everyday; I was saying that maybe they could lower the cash fare to 1.25 since there getting rid of paper transfer instead they could have the fare $1.25 for all and if you need a transfer you must use a smartrip card.

and it also effects school students because alot of them use school tokens and if you pay witha school token you get a transfer if thats dicontinued they would have to pay with a token then if need to catch another bus pay with another token that would be 4 tokens preday. If they raise they amount of tokens for 10 to 20 that issue would be solved otherwise the people who are mostly affected would be students and the parents of students that use school tokens since the cost to get to school would go up.

by kk on Nov 3, 2008 5:15 pm  (link)

In any fare system you try and balance fairness with simplicity. I don't believe one should even try and deal with everyone all the time, as it creates an overally complicated fare system. There's already a heavily discounted DC schools pass and it should serve the needs of most students. If it doesn't then it's the primary responsibility of the DC public schools to come up with another pass (possibly a fixed value instead of unlimted use school pass that would be loadable on Smartrip once that capability is added).

The fact is in the transit industry away from paper transfers (in some cases away from transfers period) and towards higher cash fares. In London, the peak cash fare is almost four times the Oyster prepaid fare. In Chicago, the cash bus fare is $0.50 higher than the prepaid fare and you get no transfers unless you prepay. In Houston they got rid of ALL their passes and fares except for the ones the federal government requires (reduced fares for the elderly and disabled). If you use their smartcard and prepay, you get five rides free after fifty rides and free transfers. If you pay cash, well you pay and pay and pay. Why are any of these cities any different from Washington? You need to justify why a an agency with the lowest fare recovery ratio amongst bus systems of its general size should lower fares.

by Dharm on Nov 3, 2008 5:28 pm  (link)

As for the school tokens, they could just add 20 to a pack instead of 10 I do understand the part of what your saying with making DC dealing with it but there halfassed solution was catch metro the solution that was created also adds to the problem

Hell the passes also add to paper waste since there infact also made of paper. Why not just go completly plastic other systems can do it or do it partly like you stated with Oystercard in greater london but we cant even seem to do that.

I didnt say they had to lower really just make it equal period however that is thats there call. Hell i dont care if they make it $ 1.50 why not have all fare regarding the bus the same $1.25, 1.35, 1.50, 2.00 whatever.

There are alot of other ways that they waste besides paper, ink etc. Have all fares the same price would say in confusion to passengers, save on ink for signs that state the different fares if its one set then that means less ink and there are quite a few other ways reprinting bus schedules for no reason other than cosmetic changes, Everytime one thing changes like adding another name to a station you have to change, they had to change a bunch of other crap like bus schedules for buses that serve the station, rail maps etc.

If you include other divisons like the rail the brown and how much that would cost that would add a whole lot of paper waste in terms of maps on trains, in station, the small maps etc.

They can solve one way of paper waste but they dont stop the rest so there will still be paper waste with or without they need to look at all

by kk on Nov 3, 2008 6:11 pm  (link)

To Michael P: I'm not sure if this is new, but the last time I had a negative balance on my SmarTrip and tried to use it, I got a buzzing sound when I hit the pad; it was like I got a question wrong on a game show. Good thing I had a dollar in my pocket that I could put on my card!

by Adam on Nov 3, 2008 6:54 pm  (link)

Adam: Thanks for the info. I was surprised to hear about the "free bus ride" bug and I'm glad that it turned out to be either already fixed or not true to begin with. I'm going to bet on not true to begin with.

by Michael P on Nov 3, 2008 8:22 pm  (link)

Hey, this limits the number of trees being cut down to print all those paper slips too. That's a good thing, IMO.

by Mackenzie on Nov 4, 2008 5:24 pm  (link)

By the way school tokens can also be loaded on to the smart trip thus the child will be able to transfer without using another token. You can only load the smart trip with tokens on the bus. I have 3 teens who would be affected and I checked into this thoroughly with metro @ 202-637-7000

by Jeannette on Jan 4, 2009 9:09 pm  (link)

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