TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Best Practices for Unbanked and Underbanked Customers
BRIEFING ITEM
RECOMMENDED ACTION(S):
Title
Consider receiving a report on the best practices for accommodating unbanked and underbanked customers under electronic fare payment systems. [Requested by Director Shaw - 10/9/19]
Body
STRATEGIC IMPORTANCE:
Goal - Convenient and Reliable Service
Initiative - Service Quality
This report is designed to help the District explore how to make fare collection more efficient through cashless fares while at the same time ensuring unbanked and underbanked riders have full access to all fare types.
BUDGETARY/FISCAL IMPACT:
There is no immediate financial impact associated with this briefing report.
BACKGROUND/RATIONALE:
Exploring Cashless Transit Fares and Serving the Unbanked
Staff has prepared this report at the request of the Board to consider an issue which is becoming more important to transit agencies. This report explores the possibility of AC Transit moving to a cashless fare system, and the impact this would have on unbanked and underbanked riders. AC Transit, like many (American and international) transit agencies, has sought to reduce the proportion of fares paid in cash, and to provide non-cash fare payment options.
Like most American transit systems, AC Transit has not sought to completely eliminate cash fares on local buses. The New York City Transit Authority has an intermediate rule-accepting coins but not bills in bus fareboxes. American heavy rail systems (such as BART), and some light rail and Bus Rapid Transit lines (such as Tempo) do not accept cash payments on the vehicle. An estimated 70% of fare payments on AC Transit were made with a Clipper card pre-COVID.
The one large American transit agency which is seeking to go cashless within the next five years on all modes is the Massachusetts Bay Transportation Authority (MBTA), which serves Boston and ...
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