Article Highlights
U.S. transit agency Green Bay Metro plans to go cashless and launch open loop. But it also plans to surcharge riders who tap credit or debit cards or devices storing these credentials, seeking to recoup bank card transaction fees, the agency told Mobility Payments.
By law, banks can and do charge a fixed fee of $0.21 plus a small percentage rate of 0.05% on these (regulated debit card) transactions, even for small-ticket purchases. Payments schemes like Visa, which set the rates, allow banks to add $0.01 for fraud prevention, for a total fixed interchange fee of $0.22.
• Green Bay Metro
• Genfare
• Modeshift
• Dayton RTA
• Core Transit
• KCATA (Kansas City)
Green Bay Metro Transit aims to become one of the few agencies in the country to stop accepting cash on board its buses–even as it plans to launch open-loop payments at the same time.
But the U.S. transit agency apparently does not intend to promote open loop heavily, and, in fact, Transit Director Patricia Kiewiz told Mobility Payments that Green Bay Metro plans to surcharge riders to cover bank transaction fees, an unusual move.
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