Transit
What do SmarTrip cards cost?
According to Brett Tyler, the Director of Customer Service for WMATA, a SmarTrip card costs $3.50 in bulk from the vendor, Giesecke and Devrient (PDF on the "GO CARD", the specific design used for SmarTrip). The cards originally cost just under $10.00 each, but with larger volume purchases, the costs have fallen.
WMATA also has to initialize the new cards before selling them. It's not clear whether WMATA has to do that manually or whether they own or lease one of the machines from the SmarTrip card designer, Cubic Transportation Systems.
Should WMATA have lowered the cost of a SmarTrip card as its costs fell? WMATA also has to pay staff to order new cards, process them, and distribute them. They have to pay staff and a contractor to develop SmarTrip improvements as well as manage the existing Smartrip program. They have to maintain thousands of individual card readers.
On the other hand, WMATA used to sell you a card for $5 that cost them almost $10. They're still willing to give you the paper magnetic stripe cards for free, and the magnetic strip cards certainly cost WMATA something. Now that WMATA is trying to get people away from paper transfers by requiring SmarTrip, I think it's time that the price of a card come down.
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So the dispute here is over $1.50? Come on. There are many things WMATA doesn't even break even on. Yet the moment you find something they're not selling at cost it's worth multiple blog posts of complaining. I say leave it as is. People like round numbers. Plus, while they are making some profit on the plastic that isn't going into shareholders wallets it's covering other expenses in the system. If you take care of your smart trip card this should only be a one-time purchase rather than recurring $1.50 they are slamming riders with.
by Paul on Dec 12, 2008 8:59 am • link • report
Also its pretty convenient that you can put a ten in the machine and the card costs five bucks, and comes with 5 bucks on it.
by Kiran on Dec 12, 2008 9:09 am • link • report
by Pat on Dec 12, 2008 9:13 am • link • report
http://www.dconecard.dc.gov/dconecard/cwp/view,a,1243,q,461170.asp
by Erik on Dec 12, 2008 9:22 am • link • report
Oh the dilemma the central planning commitee faces with thorny problem. I suggest we (just this once) allow capitalist intrusion and let the market decide. Continue to charge $5 for the card. If people stop buying it, lower the price until they do. But don't lower it below the acquisition cost and potential savings to the system.
Once WMATA can figure out how to stop tracks from catching on fire and rails from bending in the heat, they can launch a blue ribbon commision of the finest economic minds to determine the best and most fair price for this card.
Until then, $5 seems like an ok price to me. I'm cheap and I had no problem with this charge.
by Tom on Dec 12, 2008 9:35 am • link • report
Oh the dilemma the central planning commitee faces with thorny problem. I suggest we (just this once) allow capitalist intrusion and let the market decide. Continue to charge $5 for the card. If people stop buying it, lower the price until they do. But don't lower it below the acquisition cost and potential savings to the system.
Once WMATA can figure out how to stop tracks from catching on fire and rails from bending in the heat, they can launch a blue ribbon commision of the finest economic minds to determine the best and most fair price for this card.
Until then, $5 seems like an ok price to me. I'm cheap and I had no problem with this charge.
by Tom on Dec 12, 2008 9:36 am • link • report
If cards were sold for $3.50, people could buy empty cards (or cards with $5 on them and use them until they're at a nickel), take a maximum fare ride, and have a higher negative balance on the card than the card is worth. It wouldn't be worth it to anyone to put more money on the card, except convenience if the owner has registered the card, so you could expect many to be thrown away.
This would create the possibility of a modest discount for long-distance metro commuters, but would dramatically reduce WMATA revenue. Instead of getting $4.50 for a fare (at no marginal cost to Metro), Metro would get $3.50 for the card that cost them $3.50 to make.
Giving cards away to at-risk groups in DC makes sense, though, since they are much less likely to take long-haul Metro trips at rush hour. Furthermore, people aren't likely to throw away their SmartTrip cards since they get a discounted bus fare. Also, embedding the SmartTrip chip in ID cards also makes sense, because people aren't likely to throw away their ID to save $1. All these ideas make sense, and in the long-run, it probably saves Metro money to distribute SmartTrips to at-risk groups, but I don't think reducing the cost for everyone is a good idea.
by JohnOfCharleston on Dec 12, 2008 9:56 am • link • report
As a side note, being able to use the machine right next to it to add value certainly helped.
by Froggie on Dec 12, 2008 10:48 am • link • report
Sounds like a massive arbitrage opportunity.
by Tim on Dec 12, 2008 12:32 pm • link • report
"Sounds like a massive arbitrage opportunity."
To be a little more specific they have given tens of thousands to social service agencies. If one of those agencies decides to go around selling smartrips for a dollar less than WMATA, they could get some decent bank. However the card is worth something to at-risk groups and the odds of any decently run agency doing that is probably low.
I have no problem considering the $1.50 'premium' I paid (twice!) for smartrip as a tiny donation helping WMATA give those agencies that help the at risk a few cards.
by Kiran on Dec 12, 2008 12:54 pm • link • report
And yes, I agree with JohnOfCharleston that the $5 cost prevents people from just ditching the cards when they achieve a negative balance.
You also have to remember that Metro is also providing an additional benefit to SmarTrip users, namely that if you lose/damage the card, you can get the value back. Try doing that with a farecard.
by Adam on Dec 12, 2008 1:34 pm • link • report
by Jasper on Dec 12, 2008 3:44 pm • link • report
When Atlanta converted their fare system from tokens and mag-stripe passes to an RFID system also manufactured by Cubic, they created two types of smart cards. One, called the Breeze *Card* is just like the SmarTrip. It's hard and plastic, and costs $5.00. They also created short-term Breeze *Tickets* which are meant to be used by tourists. These are made of paper, and aren't as sturdy. Each of these Tickets costs $0.50, which you don't get back--and you get charged with it every time you buy one.
Now that's a way to get people off of the paper farecards. Put a $0.50 surcharge on them. Each time you get a new one, you pay. But if you refill it, there's no extra charge.
Now, I for one, think that MARTA (or WMATA for that matter) shouldn't charge for the paper tickets, because it's tantamount to a fare increase, especially since the only way you can transfer is with either Breeze Card or Ticket.
However, the Cards and Tickets cost money to manufacture, and MARTA has to recoup the price somehow. When the new fare system debuted, MARTA gave the cards away for free (including postage) for almost a year. Mine didn't cost me anything, and while I'm only in Atlanta once or twice a year, it still works.
Note: When the system came out, I was still living in Atlanta.
But I don't think a small profit for WMATA is too high a price to pay. After all, SmarTrip comes with at least $1.50's worth of benefits in terms of cheaper bus fares (by $0.10), faster entry and exit from the system, and looking like a local when using one.
I've taken the bus at least 15 times since I got my SmarTrip, so I've already used up the $1.50 profit.
by Matt' on Dec 12, 2008 3:54 pm • link • report
Because riding the bus for people who don't sure got a lot harder with the smart trip cards.
The reason is that without a card, you cannot transfer for free now (or soon).
Imagine the hassle you gotta go through to load $1 onto your card everytime you ride the bus. Or whatever the amount is to cover the negative balance.
To me, it's a shame. The bus used to take pennies. Sure, for readers of this blog, pennies are little more than a nuisance. But for many people, including me for many years, pennies were essential to get on the bus. And, since they changed the fare box, not only does it not take pennies, but it's more finicky than ever and takes longer to suck in the money than it used to. MUCH longer.
Again, another slight to those who have no choice but to pay cash.
Imagine the hold up to the line as someone fumbles with their dollar bill and nickles to load up their smart trip card. People are not going to be so patient.
Poor people hate Smart Trip cards. But who could not care less about them?
by Jazzy on Dec 12, 2008 8:37 pm • link • report
by Cary on Dec 13, 2008 8:33 am • link • report
Additionally, they will be loading the farecard machines with paper Obama Inauguration cards as well.
by Matt' on Dec 13, 2008 10:56 am • link • report
If Wmata had the different bus and rail passes on them say a year ago metro could have got rid of everything but regular farecards for everybody saying the smartrip cards has a convenice where they dont have passes on them you pay ragular fare no discounts like with a bus or rail pass so until those are added smartrips wont be in massive use unless WMATA turned around and says one day that they require a smartrip to ride.
by kk on Dec 14, 2008 1:03 pm • link • report
by Jazzy on Dec 14, 2008 1:28 pm • link • report
They use similar plastic cards in Singapore (only they're blank white ones). You put a deposit of a couple of dollars into a machine, and then how much money you want to go toward fares, it dispenses the card, you use it and then when you're done, feed the card back into the machine and it gives you your 2 dollars back. Why is Metro's system so complicated?
by lou on Dec 15, 2008 1:32 pm • link • report
by freetransfer on Jan 5, 2009 9:13 am • link • report
by Bill in Bethesda on Jan 5, 2009 11:44 am • link • report
by Michael Perkins on Jan 5, 2009 3:21 pm • link • report
by Bill in Bethesda on Jan 5, 2009 5:29 pm • link • report
You want to email me at michaelp@ggwash.org and I can email you directly with any answer I get?
by Michael Perkins on Jan 5, 2009 5:54 pm • link • report
See this page for more information.
Also, you could try calling 202-962-1326 and selecting option 3 during working hours (before 4pm!). If you don't get a good answer on the first try, I've heard that calling back can get you different results.
Hopefully all this will become easier when the promised Smartrip upgrades happen by the end of 2009.
Good luck!
by Michael Perkins on Jan 5, 2009 8:31 pm • link • report
I have researched online, called wmata, and walked all the way to the Metro Sales Office to resolve this issue to no avail. I was told by an employee of metro that my options are to ask my employer to exchange my vouchers for fare cards, which I asked, and they can't. Or I could purchase weekly passes, which would waste money as they expire after 7 days and I would only use it for 5.
Am I missing something? I called the 202.962.1326 during business hours, no on picked up, so I left a message...
by Pamela on Feb 26, 2009 9:27 am • link • report
by Chris Combs on Sep 16, 2010 2:05 pm • link • report
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