Powerhouse Debate: Open loop vs closed loop
05 Mar 2024
- Overall, does open loop lower the cost of fare collection for most transit agencies?
- Which costs should agencies rolling out open-loop payments be prepared for (and sometimes are not)? Transaction fees? Keeping terminals certified? Fraud and chargebacks?
- Can agencies trust the financial industry to handle all their fares, or should they hedge their bets with closed loop?
- Some agencies are planning to support concessionary discounts with open loop, others are not. What are the issues?
- Most experts believe agencies still need closed loop; does this tend to limit use of open loop to visitors and other occasional riders