Fares & Ticketing Systems

Hong Kong and Octopus

Launched in 1997 the first location to widely adopt RFID contactless smart card ticketing was Hong Kong.

Here the system is marketed under the Octopus label, and although originally intended as just an upgrade on the Mass Transit Railway's (MTR) stored value ticketing system as described on page 1 it has grown in scope and usage so that in addition to being accepted on virtually all of Hong Kongs' public transports it has become a widely accepted payment and personal identification system which can be used at over 253 different commercial and other organisations including convenience stores, self service outlets (eg: vending machines) conferences and exhibitions, recreational facilities, as access control cards in residential / office buildings, for school administrative functions, to pay at parking meters / car parks, and more... What made it possible for a product intended to be used for paying transport fares to become used in so many other ways as well is that in 2000, the Hong Kong Monetary Authority granted a deposit-taking company license to the operator, removing previous restrictions that had prohibited it from generating more than 15% of its turnover from non-transport related functions.

The Octopus card is so named because it originally joined together payment systems for 8 types of transport, emulating the 8 legs of an octopus.

There are two main types of Octopus card (On-Loan and Sold), and two less common types (the Airport Express Tourist and the MTR Airport Staff). On-Loan cards are issued for usage in day-to-day functions, primarily being for fare payment in transport systems. There are four types of On-Loan cards, with the first three based on age and different amounts of fare concession, and each of them being a different colour. These are Child (pink), Adult (yellow), Elder (jade green), and Personalised (special design comprising of all other colours). Initially there was a blue student card too, but in 2005 these were withdrawn in favour of Personalised student cards. With the exception of the Personalised cards, On-Loan cards are anonymous and no identification is required for the purchase of these cards. If an owner loses an On-Loan card the stored value and card deposit are not refunded. Prices for the cards vary according to type, and include varying amounts of credit to enable immediate use.

The multi coloured Personalised card is available on registration. The name and, if desired, photograph of the holder are imprinted on the card. These can function automatically as a Child, Adult, or Elder card by recognising the cardholder's age stored on the card, hence accounting for different concessionary fares. Student status Personalised cards are available to full-time students in Hong Kong aged between 12 and 25. These cards are automatically issued to students who apply for student concessionary privileges. In addition to all the functions of ordinary cards, the Personalised variant can be used as a key card for access to residential and office buildings. If lost then Personalised Octopus cards should be reported as such to prevent unauthorised use and minimise any possible financial loss. In this way liability will only be for any loss arising from unauthorised use of the card within six hours after the loss report. The deposit plus financial value on the card (after six hours) are then refunded, less a HK$30 card cost and a HK$20 handling fee.

Visitors / tourists staying less than 14 days can buy a special Octopus card which includes the cost of using the airport express railway, 3 days of unlimited travel on MTR railways plus HK$50 cash stored value. These are not available at the vending machines - visitors will find it is cheaper and easier to purchase these at the special kiosk near the exit to the express railway. There are two variants, offering either one or two journeys on the airport express railway, with the latter journeys (only) being valid for 180 days from the date of purchase. Note that users may be required to produce an air ticket showing their arrival date in Hong Kong and passport to prove their visitor status. As with all Octopus cards these include the cost of a deposit which can be refunded when leaving Hong Kong - although many visitors like to retain their cards as a souvenir or for use during the next visit.

Sold Octopus cards are sponsored and branded souvenir cards which are frequently released by Octopus Cards Limited. These cards are sold at a premium, have limited or no initial stored value, and cannot be refunded, but they can otherwise be used as ordinary cards.

The MTR Airport Staff Octopus card is for staff of Hong Kong International Airport and AsiaWorld-Expo, a convention centre close to the airport, for commuting at a reduced fare between the airport and MTR stations via the Airport Express. This card is available upon application via the company for which that a staff member works.

In addition to credit card sized cards, it is possible to buy various types of wrist & pocket watches, mobile phone covers, wristbands and key fobs which function as anonymous Octopus cards.

Using Octopus

When travelling on the MTR network using an Octopus card many fares are often between 5% and 10% cheaper than ordinary fares paid in other ways. Plus bus services also often offer discounts or other special offers.

The maximum value which an Octopus e-purse can hold is HK$1,000. If the (financial) value on an Octopus is positive (ie. HK$0.1 or above) but insufficient to cover the full cost of the next transaction it is permitted to incur a negative value of up to HK$35, which will be re-covered when the card is reloaded. However an Octopus with zero or negative value cannot be used until it is reloaded. Once loaded the value is valid for up to three years. After that time the value can be reactivated when it is next reloaded.

There is also a frequent user loyalty scheme called Octopus Rewards.

With Octopus not only is it possible to spend money almost anywhere, but it is possible add value to the e-purse almost anywhere too - not only at MTR stations but also at establishments such as large-chain fast food establishments and local (neighbourhood) grocery stores. To make life even easier for Octopus users, some financial institutions offer automatic Octopus AAVS (Automatic Add Value Services) whereby a person can register their Octopus card number with the bank / financial institution and then whenever its financial value reaches zero, a negative balance or when its remaining plus the maximum negative value is insufficient to settle the full cost of the transaction it will be automatically topped up with HK$250 - with the funds coming from a designated bank account or credit card. Octopus e-purses can be automatically reloaded in this way once a day. Many participating credit card issuing banks or companies also give bonus points or cash rebates for AAVS transactions. Some financial institutions also offer this service for up to 3 other people aged 12 or above holding an Octopus card.

For the convenience of visitors from Hong Kong a few retailers in Shenzhen and Macau also accept Octopus, although it only possible to add value to Octopus cards within Hong Kong.

Cross-Border Octopus

In 2012 it became possible to buy two different types of twin-currency Adult Octopus cards that can also be used in a range of cities in mainland China. These retain all the usual Octopus features, including AAVS and Octopus Rewards (albeit only on HKD purchases in Hong Kong) and also feature a separate Chinese currency (Reminbi - RMB) e-purse which can be topped up to a maximum of RMB1,000. All cards are sold anonymously and no personal information is stored on them. At present it is only possible to top-up the HKD e-purse within Hong Kong and the RMB e-purse within China. Future plans include merging the three cards - Octopus, Lingnan Pass and Shenzhen Tong - although before this can happen there are some unspecified technical issues which will need resolving.

• A joint partnership between Octopus Cards Limited and Guangdong Lingnan Pass Company Limited has created the Sold Adult "Octopus - Lingnan Pass" which in addition to Hong Kong can be used in seventeen mainland China cities including Guangzhou, Foshan, Jiangmen, Zhaoqing, Shanwei, Huizhou, Maoming, Zhuhai, Jieyang, Heyuan, Yunfu, Shaoguan, Yangjiang, Zhanjiang, Zhongshan, Qingyuan and Chaozhou.
• A joint partnership between Octopus Cards Limited and Shenzhentong Co., Ltd has created the Hu Tong Xing which can be used in wherever Octopus is accepted in Hong Kong and wherever Shenzhen Tong is accepted in Shenzhen.

Glitches

Although electronic purse systems are generally very secure it is worth noting that when Octopus first started (in 1997) there was a smart university student who found a way to add-value to it "for free". Also, in February 2007 it was found that when customers added value to their cards at certain self-service add-value points located at MTR and KCR stations, their bank accounts would still be debited even if the transactions had been cancelled. A few months later (July) it was announced that following an investigation 15,270 instances of wrong transactions had been traced back to 2000, with over HK$3.7 million having been incorrectly deducted from people's bank accounts. Furthermore, it was added that there were possibly more instances of wrong transactions dating from before 2000 but as transaction data is only kept for seven years so it was impossible to be sure.

Dating from 1997 Octopus is so old that it predates all international standards regarding electronic smart cards. So therefore it does not comply with them. This represents a typical scenario for those who are amongst the first with something new. Whether this will prove to be a severe handicap in the longer term remains to be seen.

For more information visit the Octopus (English language) website at http://www.octopuscards.com/eng/index.htm .

RFID Tickets In Holland (The Netherlands)

Holland is one of several European countries where rather than being dedicated to a specific town / city or transport operator the RFID ticketing is nationwide. In this way the aim was for it to mimic* and (eventually) replace the pre-existing paper "Strippenkaart" (strip ticket) system which from 1980 until 2011 could be used for local journeys virtually anywhere nationwide. Known as the OV-chipkaart (Public Transport Chipcard) this smart card system is being run by a privately owned corporation as a self-financing business, which perhaps makes it more expensive and less beneficial than systems where city-specific cards are used.

* Whilst this was the desired outcome electronic incompatibilities between OV-chipkaart cards issued by different transport companies mean that the reality is sometimes different to what was planned - as detailed under the heading Problems, Significant Fares Hikes - Plus A Few Reductions! further down this page.

The introduction of the OV-chipkaart has now progressed to a stage whereby it has replaced all other types of ticketing in most major conurbations and can also be used on almost all services in most rural areas. However paper based ticketing is still available on some rural bus services - including one area where it had to make a hasty come-back after the introduction of the OV-chipkaart saw passenger numbers plummet by 20% (see below). The main Dutch railway operator (NS) phased out paper tickets (for journeys wholly within the Netherlands) in July 2014, although some passengers making international journeys to / from neighbouring countries may still be issued with paper tickets.

There are several types of OV-chipkaart.

The simplest version is the Disposable OV-chipkaart which is made out of cardboard and meant for one-time use only. Intended to replace paper tickets these are primarily aimed at people who rarely use Dutch public transport, (for instance) someone who boards an Amsterdam tram or arrives at a railway station and needs to buy a ticket for immediate use. Disposable cards are also intended for special purposes and one-off marketing promotions. Depending on location disposable cards are sold with a range of different pre-loaded travel 'tokens'. By way of example the list of options can include a single / return journey, a one-day regional pass, a one-day nationwide rail pass or a three-day pass to all public transports in one city. Some transport operators may also give them out free of charge during emergency situations and to help passengers travel via alternative routes when railway services have been suspended by engineering works. Single-use cards can only be used with the one (previously added) travel product and are not capable of e-purse transactions. After use they should be thrown away - although as with paper tickets some people may wish to retain them as receipts or souvenirs and transport ticket collectors will instantly recognise their future nostalgic and financial value - especially if they feature special and "limited edition" decorative designs / images. Especially when bought for railway journeys passengers are charged a €1 surcharge to cover the cost of production and handing (installing in ticket machines, etc).

The Anonymous OV-chipkaart is a semi-permanent re-usable smart card aimed at people who travel more frequently. In addition to travel 'tokens' it can also store an electronic purse. This type of OV-chipkaart is transferable (ie: can be shared between family members, friends, etc.,) - although only one person can use it at a time. However it cannot be used for discounted travel, monthly or annual season tickets. Anonymous OV-chipkaarts are sold at many locations at and near railway / bus stations, as well as transport operators customer service desks, tobacconist shops (Tabacs), newsagents, supermarkets, etc; and once some financial value has also been added to the e-purse are available for bus / tram / metro travel immediately. At some locations their price includes some e-purse value. To use on the railways anonymous cards usually need validating before the can be used, this process includes selecting whether the system should charge 1st or 2nd class fares. This can be changed at a later date at a NS ticket machine.

The Personal OV-chipkaart is dedicated to one person and includes a photograph and the date of birth of the holder. Because of this it can be used by a passenger who is entitled to cheaper or zero rate fares (eg: children aged between 4 and 11, students, senior citizens or holders of discount cards). This is also the only type of OV-chipkaart which can hold a monthly or annual season ticket, and can be stopped if lost or stolen. Another feature is that the electronic purse can be set to automatically top up its balance when it drops below a certain level. With these cards the keeping tabs of the holder's every movement becomes a realistic proposition. Originally Personalised cards were only easy to buy by people resident in Holland who had a Dutch bank account, however in December 2011 the possibility was introduced for residents of Belgium, Germany and Luxembourg (BeDuLux) to also be able to buy them, paying with iDEAL (a Dutch payment system), PayPal and / or credit cards. However automatic top-ups of the e-purse are only possible via iDEAL.

The Business / Corporate OV-chipkaart which is supplied by employers to their staff, for the purpose of business travel so as to simplify paying for business travel expenses. These are sourced from one of the specialist business travel solutions companies, who charge the business directly for the travel incurred. The employer can also stipulate whether the travel can be 1st or 2nd class. These should not be used for private travel, and if passengers also have their own personal or anonymous cards then they must be careful to use the correct one at the correct time!

OV-chipkaarts always remain the property of Trans Link Systems (TLS), which is a company that was created by the five largest Dutch public transport companies to implement a single payment system for public transport within Holland. The public can either source OV-chipkaarts direct from TLS (from the website) or through the various private or municipal transport operators. In all cases however TLS only sell the right to use their products, and on the basis that at any time the card holder's right to use it can be revoked - which effectively means be denied the ability to travel on public transport (except with a disposable card). The individual organisation which sells the OV-chipkaart determines its price.

TLS have a public assistance telephone helpline but in the time honoured way it charges premium rates.

If an OV-chipkaart needs replacing, perhaps because of loss or theft, the organisation from which it was bought will decide how much to charge for the replacement. Generally the e-purse value on anonymous cards is not refundable, although since personal cards which have been lost or stolen can be blocked so the e-purse value can be protected and refunded. Defective cards are replaced for free, with credit being returned to your bank account without handling fees being charged and season tickets transferred to the replacement cards. It is for the public transport company who supplied the card to decide how you pay your transport fares whilst waiting for the replacement card. Sometimes cards which do not work are not defective - the reason could be too many journeys where you have not checked out or there is a negative balance which means that more money needs adding to the e-purse.

Anonymous and personal OV-chipkaarts can be returned and the value of the electronic purse refunded. However there may be minimum refund limits (eg: €5.00) and handling fees and depending on the value of the refund it may be repaid in cash or directly to a Dutch bank account. When returning an OV-chipkaart people should be grateful to receive the refund of the electronic purse and not expect too much else - such as the cost of the card to also be refunded.

Using cash to add value to the electronic purse is free, although there might be a fee if you are using a credit / debit / charge card - especially for low values. The various transport operators have different policies with respect of plastic card / cash acceptance. Some locations will only accept Maestro chip & pin debit cards and coins, others will also accept paper money and / or credit cards as well. Ordinary people are not paid interest on the value of the OV-chipkaart e-purse, although no doubt some organisation somewhere benefits from the large amounts of money involved.

Limited Life - Replacements Are Chargeable!

OV-chipkaarts need periodic replacing, which effectively means buying new cards. Anonymous cards expire after 4 - 5* years; personal cards are valid for 5 years. This timescale has been determinated by the expected thermal, electrical and mechanical 'durability' of the material from which the cards are made, when subjected to what has been determined as 'normal' day-to-day use. The cost of replacement cards will depend on the charge set by the transport provider through which it is bought. As yet it is too soon to be sure how things will 'pan out' and it remains to be seen whether people replacing life-expired cards will be offered the replacements for free / at discounted rates. Perhaps a lot will depend on how much fuss the Dutch people create when the present cards start expiring en masse. Anonymous cards cannot be renewed, but a refund of unused credit can be made, exactly how depends on the amount and what the transport provider wishes to do. The cost of the card is non-refundable.

*The reason for the slight timeframe difference is unknown, however this is what the website says!...
http://www.ov-chipkaart.nl/allesoverdeov-chipkaart/kostenenopladen/tarievenlijst/ .

To allow for fare rises, increased security features of the ticket printing, (etc) the Strippenkaart sometimes expired, being replaced by versions which feature slightly different wordings, colours etc. The ticket seen above dates from 1981 and fares were charged in Dutch Guilders / Florins. A more recent 15 zone Strippenkaart dating from the € 'Euro' currency era can be seen at the Wikipedia link below.
http://commons.wikimedia.org/wiki/File:Strippenkaart.jpg

Using The OV-chipkaart

As with other RFID transport smart cards the OV-chipkaart requires placing on (or very near) a specialist card reader at the start and end of all journeys. The Dutch call this checking in and checking out. Passengers with season (or other pay-once ride-at-will) tickets are also required to check in and check out at the start and end of every journey, which many will find a nuisance when passing through 'open' stations where there are no ticket gates and mere possession of a valid paper ticket used to suffice. Financial and other penalties have been introduced to force these passengers to check in/out - see below.

Passengers using the electronic purse to pay fares as they travel ("pay as you go" - PAYG) would have had to validate paper tickets anyway, so especially at the start of the journey they will just do it in a different way. As before, failing to check in will result in being seen as someone who wanted to avoid paying the fare. PAYG passengers will also have to get used to a different style of fares calculation (see below) and checking out at the end of their journey. Because e-purse journeys are priced using an initial boarding fee so failing to check out can work out somewhat expensive - see below.

If it is not possible to check out because of a technical fault with all the card readers then users can obtain a refund of the boarding fee from the public transport company.

Distance-Based Fares: Bye Bye Free Travel Periods. Bye Bye Zonal Calculations.

The paper-based strippenkaart charged fares based on zonal regions, with passengers cancelling the required number of zones from the paper ticket plus one extra. They then had a time limit to complete their journey during which they could travel freely within the zones. So it was like buying a ride-at-will ticket valid for set period of time.

The e-purse ticketing system uses a very different fare scale which is based upon distance travelled plus a fixed basic rate. Every journey is chargeable and the freedom to travel within a fixed time limit is no longer allowed. The basic rate is the same nationwide but the rate per kilometre is set by local governments in mutual agreement with public transport companies. Passengers who need to interchange to complete their journey must check out and then check in on every transport they use, and providing this is done within 35 minutes they are not supposed to be charged a further basic fare. This time period might be too short in some areas, especially in rural areas if the bus to which a person is transferring only runs hourly.

There is also a boarding fee which varies depending on the transport provider. Typically in urban areas this is €4.00. The Dutch mainline railway varies its boarding fee depending on whether the passenger has subscribed to any of its discounted (or free) travel plans, and other factors. The highest boarding fee is €20.00, although it reserves the right to increase this for people who have a bad record for trying to cheat the system. Boarding fees are charged when the passenger checks in and then when they check out the boarding fee - less the actual cost of the journey - is reimbursed. People who forget to check out end up being charged the full boarding fee. To check in successfully an OV-chipkaart must have sufficient balance - at least €0.00 - in the e-purse - even if there is a valid travel product (like a season ticket) on the card. A card with a zero balance can only check in once as it will then go negative and the e-purse will need reloading before the card will successfully check in again.

Another aspect of the distance based fares system is that if a person is travelling from a bus (tram) stop served by several routes, with any of them being suitable for them to use to reach their destination but one of them following a different, more direct route than the others, then the fare for the journey will vary depending on which transport the passenger used. So, if the more direct route only operates Monday - Friday daytime, then passengers who travel in the evenings and at weekends will pay higher fares. The difference may only be a few Euro cents, but passengers dislike being financially penalised for things which are not even within their control.

For many people paying fares electronically with the e-purse means that they no longer need to work out how many zones they will be travelling through when validating the Strippenkaart paper ticket. At railway stations they can walk straight to the platform and forget about ticket office queues, etc. Especially younger people see this as the 21st century way to pay fares and are very happy with it.

As a general theme passengers are protected from double reads when checking in/out as card readers have time limits (which vary between the different transport companies) that prevent a card from being used twice in quick succession.

The e-purse aspect of the OV-chipkaart is still in its early days and the various public transport companies retain the right to apply different terms as time progresses. It is assumed that this would be done in agreement with local governments.

Incomplete Transaction Charge

Whether using a season ticket or the e-purse passengers who fail to check in or check out incur an incomplete transaction on their card. Cards which incur 12 incomplete transactions in a fortnight are disabled. To get them restored requires a visit to the local transport operator's sales and information desks.

Many people wonder why passengers who have prepaid season tickets should need to check in/out at locations where there are no turnstiles - after all, since their fare is fully paid so they cannot be accused of trying to avoid paying the correct fare for their journey. Most likely this is to help the transport industry determine how many people travelled on each transport so that the correct percentage of the total fares income can be paid to the various transport providers, and also to help transport planners map general travel trends so that they can ensure that the services best meet the needs of the passengers.

Early indications suggest that 2% of passengers are failing to check out, which is providing the transport operators involved a tidy cash bonus - its like winning an intermediate (ie: middle) prize on the lottery... easy money! In July 2013 some transport user groups launched an investigation to discover how much money transport companies are earning from people who did not check out after completing their journey.

This topic is also raised at the top of the page under the headline of Smart Card Operator Cash Flow Bonanza in the generic section about smart card tickets and can be reached at this link. A clickable link has also been placed there which returns back to here.

Railways And The OV-Chipkaart

The introduction the OV-chipkaart has taken railway ticketing to a brand new level which is much beyond what was allowed with the paper Strippenkaart. As with urban transports passengers (who do not have season tickets) no longer need to buy a ticket before travelling - as long as they check-in at the start of their journey and check-out when they arrive at their destination then the e-purse will pay their fare for them. It will automatically adjust the fare according to the time of the journey and take into account of any discounted or free travel plans to which the passenger has subscribed and loaded on to their OV-chipkaart.

There are several railway operators in Holland who charge different boarding fees and fare scales. Most of these comments refer to the national system - Nederlandse Spoorwegen (NS)

Before use on the railways the OV-chipkaart may need activating. This depends on from where the OV-chipkaart was sourced and how it is used. Passengers who bought a OV-chipkaart with the intention of using the e-purse from an NS ticket machine or service desk only need to add monetary value. The card will then be ready to use. However if the OV-chipkaart was sourced from another public transport operator then it will need activating before it can be used on the railways. This is a one-time process which is accomplished in one of two ways. One option is to add monetary value at an NS ticket machine (or service desk) and also choosing whether they plan to travel first or second class. The other option is for OV-chipkaart cards which already have sufficient credit on their e-purse. This too requires a visit to an NS ticket machine or service desk, and selecting the option to a product called 'pre-paid travel with NS'.

With many stations being fully open (ie: they only have free-standing OV-chipkaart card readers) so the railways see the electronic tickets as only being legally valid when they have been checked in/out. Otherwise a €35 fine is payable.

Passengers are not supposed to check in for their journey more than 30 minutes in advance of its departure, if they do then they are allowed to use the 60 minute rule to check out and then check in again nearer the correct time. However it is permitted to check in early in order to avoid paying a second basic rate when interchanging between services.

If someone checks in but then decides to not travel then after 3 minutes (but no longer than 60 minutes) they can check out again at the same station without being charged. After 60 minutes the boarding fee is deducted from the card. This also makes it simple for people who are not travelling to visit retail outlets within the fares paid area, and also results in a free platform ticket for when meeting arriving passengers, etc.,

Passengers should always have checked out within 6 hours of checking in. The significance of this is that under normal circumstances no railway journey should take as long as this, and if someone has forgotten to check out after completing a journey they then have a grace period in which to do this. However, this rule is instantly negated once the OV-chipkaart is used again, for instance when catching the bus from the station to home, and the 6 hour period expires at the end of the day.

The introduction of electronic ticketing on the railways has seen many changes to the off-peak discounted fares that were offered to passengers. As a general theme the older schemes were replaced with passengers now being able to buy new reduced cost or even free travel products which are loaded on personalised OV-chipkaart cards and then will be automatically invoked when checking in/out. These offers include 40% reductions on off-peak fares, various offers which include free weekend travel in the package, and more. A side effect of this is that visitors from outside Holland are less likely to be able to benefit from these offers and discounts, this especially affects senior citizens from outside Holland who during the days of paper ticketing were able to purchase the discounted travel products.

However there is a partial work-around... passengers travelling with someone who has bought an off-peak discount travel product are allowed to add a "travel along discount" to any personal or anonymous OV-chipkaart at the NS ticket vending machines, and then their next journey will be at the reduced rate. For return journeys the "travel along discount" will need adding again before checking in.

Passengers who travel in the mornings and used to buy two tickets (known as split fares) so that the part of the journey which was outside the morning rush hour could be charged at an off-peak rate are now automatically charged the cheaper fare for the portion of the journey that was during the off-peak hours.

Passengers are allowed to break their journey but only if the entire journey is completed in one day. Electronic ticketing systems will know if this rule is honoured or breached!

Return tickets, which used to be cheaper than two single tickets, are not available with fares paid with the smart card e-purse. It is claimed that single ticket fares were reduced so that return journey costs did not rise.

One other noteworthy change is that peak fares are now also charged in the evening rush hour period.

Passengers are still expected to check in/out when trains are replaced with buses, whether scheduled or otherwise. Sometimes there will be mobile card readers for this purpose.

Ticket Barriers And Station Access

Concurrent with the July 2014 full implementation of the electronic ticketing 90 stations which had previously been open became gated so that passengers are not be able to reach or leave the platforms without passing through a physical gate. Until this date many stations had gates which were permanently open.

At some locations this is causing much controversy because the stations may also be walking routes and / or may have catering and other retail outlets which will lose money if they cannot be accessed by non travellers. To make it easier for passengers to access these facilities it has been suggested that they could become fares NOT paid enclaves within the fares paid areas. This is possible because of the 60 minute rule which allows people to enter and leave the fares paid area within 60 minutes for free. This would also make it possible for passengers to avoid breaching the rule about not checking in more than 30 minutes in advance of their train. What happens with people who are not travelling and / or do not have an OV-chipkaart remains to be seen. It is assumed that passengers with e-tickets will be able to use the barcode scanner to enter and leave as required.

E-Ticket

With NS having abolished normal paper tickets on 9th July 2014 passengers who simply do not need or want even an anonymous OV-chipkaart have the option of two other possible ticketing options. One of these is the disposable paper single-fare ticket, as detailed above. These tickets attract a €1 surcharge on ordinary fares to cover the cost of their production and handing (installing in ticket machines, etc). But for irregular passengers, visitors to Holland who simply do not need or want an OV-chipkaart so disposable tickets represent the easiest way to pay transport fares. This is probably the only way that someone can buy a ticket for someone else, especially if the ticket needs posting to them - such as a relative coming to visit from another town which may even be outside Holland.

The other possibility is the print-at-home e-ticket. These are typically chosen for longer distance travel and are also ideal for special promotion fares. e-tickets have to be purchased online in advance of travel and because they are personalised they are only valid if the passenger has both the e-ticket and valid proof of identity with them. These will be needed when tickets are checked by ticket inspectors. e-tickets are sold for travel on a specific day / date. They must be printed on A4 paper.

Passengers with e-tickets are not subject to the 30 minute rule that applies to users of the OV-chipkaart. At stations with closed ticket barriers passengers should use the bar code scanner to enter or leave the platform.

Although e-tickets can be bought from the Dutch Railways website this is only easy for people with Dutch bank accounts, as payment has to be made via iDEAL, which entails a direct transfer from a Dutch bank account. An alternative option is to buy them (as an international journey) from the website of the Belgian Railways as this accepts credit cards.

Free Platform Tickets

Especially for longer distance journeys non-passengers often like to walk right up to the train their friends / relatives are travelling on so as to be able to wave them goodbye or welcome them if at the destination station. The OV-chipkaart includes a platform ticket function whereby no charge is made when a person checks in and then between 3 and 60 minutes later checks out at the same station. If a person is longer than 60 minutes they are charged the boarding fee.

Anonymous Online Journey Receipts

Even users of anonymous OV-chipkaart cards are able to create an online account and print out journey data receipts which can be submitted to employers and even used on a tax return as travel expenses. All that is needed to create an account is a user name and password. Once the account has been activated the user can log in and from the list of journeys select which ones which they would like to be included in the printed receipt.

However, whilst no personal details are required the act of creating an account still requires that the person has a valid email address, and it is possible that the ip address of the computer where the online transaction is carried out is also recorded. Both of these leave electronic trails which can be used to identify someone and their location.

Problems, Significant Fares Hikes - Plus A Few Reductions!

The implementation of the OV-chipkaart has been riddled with problems, and the cost of the project is proving to be massively more expensive than originally anticipated.

The Dutch people were promised that the introduction of the OV-chipkaart would not see fares rise - but in Amsterdam the former basic charge for travelling even a few stops on a tram soared from €1.45 (€1.60 if bought on the bus or tram) to €2.60. This is because the trams no longer sell single-journey tickets - instead passengers must buy a one-hour ride-at-will ticket which is a very different product. In addition, there are complaints about railway fares having increased because return tickets (which are cheaper than two single tickets) are not available for OV-chipkaart users.
Information source: http://www.dutchnews.nl/news/archives/2010/01/public_transport_prices_under.php.

In August 2009 newspaper reports talked of 50% of the ticket machines breaking down on a daily basis.
Information source: http://www.dutchnews.nl/news/archives/2009/08/transport_smart_card_machines.php.

Despite the intended multi-operator integration so many transport companies have developed their own system and fee structure that passengers are faced with a complex system of charges which costs them money. For example, people changing trains from the mainline NS Dutch railway to a privatised Veolia train have to pay a second basic fee because the two rail companies have different systems. The same applies to passengers using single tickets bought on Amsterdam's trams when changing to privatised Connexxion buses.
Information source: http://www.dutchnews.nl/news/archives/2009/11/labour_mps_complain_about_tran.php.

It is reported that it is not possible to load several season tickets from different transport companies on the same OV-chipkaart card (eg: GVB Amsterdam urban travel and NS mainline trains) so that passengers need several OV-chipkaart cards.
Information source: http://www.dutchnews.nl/news/archives/2013/07/transport_user_groups_probe_co.php.

There are also reports of wrong fares being charged when passengers check out, (to be pedantic, it is the wrong refund value of the boarding fee). When this occurs passengers can apply for a refund from the public transport company, however this can only be paid to a Dutch bank account.

There are also reports of problems caused by the card readers not being set to the correct time and even date, especially on trams and buses, so that passengers end up having their deposits retained.

The question of card readers being set to the wrong date and time can occur with paper ticketing systems too, especially those where passengers buy tickets which must be validated before use. This happened to me once, in Germany where the mechanical ticket validator stamped a time and date from a few days previous. I was saved from a serious problem because I noticed this and when I visited the customer service enquiry desk I was able to prove that I had not used the ticket on the stamped date. This was because the date I purchased the ticket was also printed on it - and it is not possible to validate a ticket a few days before it has even been bought! Normally tickets do not show the date of purchase, especially not when bought from ticket vending machines located close to bus and tram stops, but my ticket was bought from a touch screen machine located in a station ticket hall which sold a wide range of different tickets that were then printed at the time of purchase.

However it is not all bad news - under the distance based system some fares have come down, especially where a relatively short journey had previously crossed a zonal fares boundary so the journey used to cost the price of travelling in two rather than one zone.

These links will also be of interest, especially the reader's comments.
Information sources: http://www.dutchnews.nl/news/archives/2011/06/dutch_rail_to_switch_to_smart.php
http://www.dutchnews.nl/news/archives/2011/08/dutch_rail_happy_with_smart_ca.php.

In August 2013 a report claimed that since 2011, when the Strippenkaart was replaced by the OV-chipkaart, fares had risen very significantly, with the cost per kilometre rising by 47% in The Hague and 38% in Amsterdam. Nationwide the rise is about 8%. The disparity in increase percentages is because the OV-chipkaart makes it possible to set the kilometre charge ( with the Strippenkaart it was set nationally) and the higher prices are related to budget deficits in the big cities which have seen subsidies fall and increases in the percentage of overall transport costs that comes out of passenger farebox revenues.
Information sources: http://www.dutchnews.nl/news/archives/2013/08/bus_and_tram_travel_is_much_mo.php
http://www.expatica.com/nl/news/dutch-news/Bus-and-tram-travel-is-much-more-expensive_271230.html
http://www.nltimes.nl/2013/08/06/traveling-by-bus-and-tram-expensive/.

Socially-Exclusive Activation Routine Deters People From Travelling On Public Transport

People who have difficulty understanding present-day technologies and / or who do not use the Internet are finding themselves being disadvantaged because some activities (such as activating a personalised OV-chipkaart) must be done online.

First a person must create an account at the OV-chipkaart website, then they need to make a 'purchase' from the webshop, with the item being bought called activate my chipcard. Then they must tell the system where they wish to 'collect' the activation, which will either be a ticket machine or transport company service desk.

The blog linked below details one person's experience of trying to use their card on the railways, and having to activate it before being able to do so. The blogger also complains that the confirmation email which they are supposed to have received within an hour actually took a day to arrive and expresses their dismay that the weekend return discounts that were offered on paper tickets were not made available to OV-chipkaart users.
Information source: http://gray-um.com/tag/ov-chipkaart/

Stations With Shared Fares Paid Areas

Some railway stations have OV-chipkaart readers for more than one transport provider located in close proximity. Passengers must be careful to use the correct one!

In some conurbations the station's fares paid area is shared between a mainline railway and the urban metro. Especially where the metro and mainline railway benefit from cross-platform interchange passengers changing between trains MUST remember to check out on the correct card reader for the transport provider they just used and then check in for the transport provider they are about to use. If using the same card then this must be done in the correct order otherwise they will be financially penalised. (This must be done everywhere but its especially easy to forget do this when the trains share the same island platform) As of 2013 investigations are underway to work out how to make seamless through journeys possible, so that interchanging passengers will only need to check in/out at each end of their entire journey.

Passengers wanting to travel between two stations both of which are served by direct trains operated by two (or more) transport providers would think that it should be possible to take which ever train came first. Unfortunately this is not necessarily so. Instead they need to choose whose trains to travel on when they arrive at the station and then check-in using its card readers - and remember to use the correct card readers when they check out afterwards! This also applies to passengers travelling on the Amstelveen route where Amsterdam trams and metro provide a joint service - although here the card readers on the platform are for the metro whilst tram passengers must use the card readers inside the tram.

Long-Term Data Storage!

Electronic travel records of people's movements using both public transport with the OV-chipkaart and private motoring distance-based user toll information are all being stored for seven (7) years. This will help with any issues related to possibly incorrect charging years after the event. However this is probably not the reason why such data is being held.

Civil liberty campaigners are concerned that because the travel records can be accessed by the police, judicial system, tax service, etc., so these organisations will find such data to be veritable goldmines of possibly incriminating information, with probably innocent people being seen as guilty until proven otherwise.

The official mantra may be that only criminals will have something to fear, but who wants a knock at the door at 5am in the morning because electronic records show that they just happened to be near the scene of a major crime?

Passenger Numbers Plummet 20%!     Paper Tickets Return - For Some!

It should be noted that in many parts of Holland there still remain some other ways to pay public transport fares, especially bus fares, as outside the big towns and cities some local bus companies still sell paper based tickets which are accepted on their own services only.

In the Dutch region of Limburg the switch to the RFID OV-chipkaart coincided with a 20% reduction in passenger numbers which was attributed to the public's dislike of the Big Brother police state RFID ticketing system and the way in which even passengers with prepaid day-tickets must check-in/out every time. In the end the previous paper-based day tickets were reintroduced.

Future Expansion: Travel Now / Pay Later Accounts, Bar Codes, 'Only' 75% Satisfaction

OV-chipkaart acceptance has also extended beyond public transports to car parking, bicycle and Green Wheels electric car hire (rental). In 2011 there were trials with the e-purse at other locations as well, and with permission having been granted by the financial regulators at the Netherlands Bank so it was planned that in autumn 2013 that OV-chipkaart acceptance would widen.

In March 2014 it was revealed that only 75% of passengers are happy using the OV-chipkaart, with reasons for dissatisfaction including difficulty checking out, forgetting to check out, difficulty with the way in which excess payments and refunds are handled and difficulty adding value to the e-purse. So in an attempt to make life easier for these passengers as well as create new ways for all passengers to pay their fares trials are to start in Rotterdam with travel accounts (where fares are collected from bank accounts on a monthly basis) and contactless bankcard acceptance. Initially these trails involve a small number of people, but if all goes well they will be available to virtually all passengers later in 2014. Also being discussed are other ways to pay for travel, such as using a barcode, with the suggestion that a theatre could include discounted travel in the overall entrance fee, with the passenger using a barcode that is printed on the admission ticket to pay their fare.

Information sources: http://www.nltimes.nl/2014/03/03/rotterdam-experiments-travel-account/
http://www.expatica.com/nl/news/dutch-news/Travel-now-pay-later-concept-tested-by-public-transport-smart-card-_286585.html
http://www.dutchnews.nl/news/archives/2014/03/travel_now_pay_later_concept_t.php.

Facial Recognition Cameras

Although not directly linked to ticketing, in 2011 Rotterdam trialed the use of facial recognition cameras for when passengers board trams. The idea was stated as being to alert the tram driver if someone who a court of law had banned from using public transport (perhaps for fares dodging or being violent to other passengers) was boarding the tram. However, as the comments section points out, the technology would be so easy to extend to photographing and attempting to identify everyone when they board a tram, bus, enter a railway station, etc., and / or when they check-in/out.

Information source: http://www.dutchnews.nl/news/archives/2011/09/facial_recognition_cameras_to.php

The reader comments also make for interesting reading; indeed there will be some people who understand wider long-term trends and therefore see this as just another stepping stone to George Orwell's 1984.

Elsewhere globally the list of towns and cities using RFID smart card ticketing systems is increasing, especially in the more technically advanced nations, and already the list is too long to name them all. However what is happening in New Zealand may be of relevance to Britain - especially towns and cities where the same on-street competition between bus companies is to be found.

Wellington, New Zealand

New Zealand operates a deregulated bus system where the bus companies compete against each other for passengers, much like Great Britain outside of London and Northern Ireland.

In Wellington the RFID ticket follows the nautical theme of Hong Kong and London (see below) and is known as Snapper.

Snapper's cards come in several variants and colours; Snapper Red is for adults and secondary school children and Snapper Green is for primary and intermediate school children. Children using a Snapper Green automatically receive child fare discounts on some bus services. Snapper Green can also be used to buy items from shops where Snapper is accepted, including some school tuck shops.

As well as normal credit card sized cards which are normally kept in wallets there are several variants which can be kept on keyrings or hung from lanyards and mobile phones. These include the Snapper Sprat which is an extra tough / robust small Snapper card and the Snapper USB which a user can also plug in to a computer's USB port to check their balance and top up using the special My Snapper computer software. Snapper USB is available in Windows and Applemac variants.

Other items also available from the Snapper shop include a tough Snapper Holder which features a ring that allows a credit card sized Snapper card to be attached to a key ring or lanyard without having to punch a hole in it, a Snapper branded Lanyard, and the Snapper Feeder which a user can plug in to a computer's USB port and in conjunction with the special My Snapper computer software top-up a Snapper's e-purse, and more. See below.

Snapper is also compatible with the NFC feature of some Android smartphones. This requires the free Snapper Mobile app which can be downloaded from Google Play. This app also includes a widget which can be placed on the smartphone's home screen and displays the Snapper balance, and if you have a travel pass then also how many days remain on it.

Some Snapper Mobile functions are only available on Touch2pay smartphones which have a Touch2Pay SIM from 2degrees and / or next generation Snapper cards which have a '+' symbol on the top right hand corner of the card.

Since iPads and iPhones are not NFC enabled Snapper Mobile is not available for Apple users.

Once a Snapper card has been purchased either funds need adding to its e-purse or some other type of travel ticket needs adding; then it is ready to use.

Feed Me, Feed Me, Feed Me Now!

With Snapper being named after a fish / a living being it is perhaps not surprising that adding monetary value is known as 'Feeding', although the term ' top up' is also used.

There are several ways to feed a Snapper.

• Doing so at a Snapper agent or Snapper service centre costs 25 cents per top up. The fee covers the cost of the retailer providing the top up service and associated bank charges. Snapper agents can also check balances and some can even apply a travel pass to Snapper cards.


• Doing so at a self-service Snapper kiosk using EFTPOS (debit card) is free and the minimum top up amount is 1 cent. Note however that the kiosks are a very rare breed - at the time of this update (July 2013) the website listed just four (4) kiosks in Wellington plus one in Auckland, in a girls school to which the public are not admitted.


• Another option involves either using a Snapper USB or a Snapper Feeder USB dongle which plugs in to a computer and using the free software downloaded from the Snapper website. This software is available in Windows and Apple Macintosh but no longer Linux variants. When used it establishes a secure connection which is outside of web browsers (although of course an internet connection is still also required). Topping up online using a Snapper Feeder or Snapper USB and a credit card is free. Although the Snapper Feeder costs to buy a household would only need the one, no matter how many Snapper cards are held by the family members. Parents can update their children's Snapper cards in the evenings from home, rather than enduring the hassle of finding an open local shop during precious family time. Alternatively in the office a Snapper Feeder would facilitate work colleagues (one at a time) topping up their personal Snapper cards during tea breaks, etc. It is also possible to check balances and purchase a travel pass / apply it to a Snappercard.


• Using an Android NFC enabled smartphone and the special app that is downloaded from the Google Play. In addition to topping up (without service charge) it is also possible to check e-purse balances, buy a travel pass, see the status of travel passes travel concessions.

The maximum monetary value which a Snapper can 'eat' is NZ$300.

Snapper's e-purse is accepted to pay fares on all trolleybus and some motorbus services within Wellington, at railway station ticket offices and at a growing list of retail establishments. Snapper can also be used to pay car parking charges, ferry and taxi fares, although there may be an electronic transaction fee which varies from taxi operator to taxi operator.

Passengers using Snapper must tag-on at the start of their journey and tag-off at the end. To indicate a successful tag or 'read' of the RFID smart card a green circle illuminates on the card reader and a beep is heard (two beeps for children and concessions) and at the same time the system automatically work outs the correct fare. On buses tagging-off can be done at either the front or the back of the vehicle.

Since June 2009 some bus companies have given a 20% discount on adult fares paid for using Snapper. One bus company also offers discounted transfers to other buses on its network. Passengers who do not tag-off do not receive any of these benefits and depending in bus company may be charged a full fare as if they rode the bus from one end of the route to the other end.

Snapper The Whole Family In One Go!

When boarding a bus if the lead passenger advises the bus driver before tagging-on then one Snapper card can be used to pay for up to five passengers, who could be a mix of two adults and three children. But do remember to tag-off afterwards, otherwise no-one will benefit from any discounts and they may all end up being charged a full fare! It is only possible to Snapper multiple people in one transaction when all fares are paid for from the e-purse. In other words, a travel pass and e-purse cannot be used at the same time.

Snapper is a commercial product, controlled by a wholly-owned subsidiary of Infratil (a major New Zealand business,) who also control NZ Bus, who own the former Stagecoach operations in New Zealand and have a near monopoly of the buses in Wellington - except in the suburbs of Mana and Newlands where an incompatible smart card system is used.

Registration of Snapper cards is optional. If done the benefits include online account access and transaction history, plus greater protection for a Snapper which swims free from its owner and becomes lost - or was stolen.

IOU

If there is insufficient money on a Snapper cards's e-purse when tagging-off, or a passenger fails to tag-off, or a passenger travels outside the area covered by a Snapper travel pass and an extension fare is charged which is greater the value stored on the e-purse, then something known as an 'IOU' is incurred.

IOU's are easy to resolve - just top up the e-purse, and then the next time the Snapper card is used to tag-on the IOU is repaid.

However travel passes will not work on Snapper cards which have an uncleared IOU.

Expansion

Snapper was being rolled out in Auckland - already some shops accept it - and it was planned that during 2010 it will be available on NZ bus operated services too. However the choosing by the Auckland Regional Transport Authority (ARTA) of a different smart card system called Hop threw a spanner in the works. Compatibility issues have dogged plans to integrate the Snapper and Hop technologies and by July 2013 the future remain uncertain.

The ARTA is New Zealand's only regional transport authority and has the power to require their system to be accepted on buses in Auckland, as well as railways and ferries. Whether some buses will end up with two smart card readers, for two different systems, remains to be seen.

There is more information about Snapper on their website at http://www.snapper.co.nz/.

RFID Ticketing In Great Britain

Bradford: Where Smart Cards Came With BusMiles To encourage Customer Loyalty

Some British privatised transport companies are also enthusiastic for smart card ticketing because it will facilitate the easy introduction of customer loyalty schemes for regular passengers. One city where such a scheme used to operate is Bradford, West Yorkshire, where the smart card was known as FirstCard and the promotion was marketed under the name (or brand) of BusMiles. The loyalty scheme offered 1 BusMile for every £1 the smart card's registered owner credits to it, with the registered owner being able to convert 100 BusMiles into £1 stored value.

The FirstCard was free to obtain, all that the transport company required were the user's name, address and date of birth. If obtained from the local transport authority travel shop then proof of identity was also required (a utility bill showing a name and address sufficed).

FirstCard holders also benefitted from discounted bus travel when purchasing an Annual, Monthly or Daily pass. Or they could use the e-purse feature as an easier way to pay bus fares. Despite being registered to one person it was permitted to share a FirstCard with friends and family, so that they could all take advantage of the value on the card.

If the registered holder decided to return the card then its stored value would be refunded less a 10% administration fee. Any remaining BusMiles were converted to stored value at the normal rate. For season tickets only remaining full calendar months could be refunded, with the value being calculated proportionally on the basis of the price of an annual travel pass. Again, there was a 10% handling fee.

A lost, stolen or defective FirstCard had to be reported by the registered owner; replacement FirstCards were issued after 3 full working days. Until then however all bus fares had to be paid for in the normal way and were not refundable. This was because the unauthorised use of the FirstCard could only be stopped at the time of issue of its replacement. BusMiles on a lost, damaged, stolen or unusable FirstCard could not be transferred to a replacement FirstCard. However, BusMiles existing on the original FirstCard on the date of issue of the replacement were converted into stored value (at the normal rate) and added to the replacement FirstCard.

After a decade of use the BusMiles scheme ended in April 2012, because the bus company was planning a new smart card / EMV system for all its services and the older system used incompatible technology.

London's RFID Oyster - A Valuable Pearl Or Worthless Lump Of Grit?

In London the electronic smart card tickets are marketed under the name (or brand) of Oyster.

Introduced in 2003, by 2013 the Oyster system was credited as having completely revolutionised the way in which passengers who did not have season tickets pay their fares, and it has been found that even people in rural areas well away from London often express a desire for a similar system to become available on their local bus and train services.

Oyster cards can be used with both standard season tickets and as an e-purse. Unlike Hong Kong the Oyster e-purse has very few uses apart from paying for travel. To increase flexibility it is possible to load Travelcard and / or BusPass season tickets and use the e-purse PAYG monetary value feature on a single Oyster card. When used the system will always look for the appropriate period ticket first, and only charge the e-purse if nothing else is available.

In London the term pay as you go (PAYG) is usually used for the e-purse feature where the correct fare is deducted as appropriate for the journey. Sometimes the older term PrePay is also used, but this seems to be slowly slipping out of favour, perhaps because it too accurately reminds users that they are effectively paying in advance. If an Adult Oyster card which has not been registered is only used for PAYG then it can be shared with friends and relatives - providing that only one person is using it at a time. The maximum e-purse amount that can be loaded on to an Oyster card is £90.

Oyster cards being used for weekly Travelcards and PAYG do not need registering, and providing that whenever adding extra monetary value to the PAYG e-purse the transaction is made using cash then they will be as anonymous as paper tickets. However, because plastic cards leave 'paper trails' anonymity will be lost if plastic cards are used for any transaction which involves an unregistered Oyster card. Unregistered Oyster cards will not be stopped or replaced if lost or stolen. This means that the e-purse value will be lost (used by someone else).

Oyster cards containing Travelcard season tickets of one month or longer need to be registered with the user's name. Registering a card will enable the user to view a list of recent journeys online and to use 'auto top-up' of the e-purse. It also allows lost or stolen Oyster cards to be stopped and facilitates a transfer of the tickets and / or e-purse to a new card. However these card can only be used by the owner.

Oyster cards for senior citizens, children and other users who are entitled to special rates must also be registered, and in many cases will include a photograph of the user too. Not all of these tickets allow the use of the e-purse - for instance, the 'Freedom Pass' given to senior citizens is already accepted throughout London so there should not be any need to use PAYG. More information is available in the publicity given to the people who are entitled to these tickets.

Oyster cards are extremely easy to purchase. There is no need to complete any paperwork, no questions are asked... all that matters is that you have a sufficient money to pay for the deposit. Within London over 3700 local shops (known as Oyster Ticket Stops) sell Oyster cards, as do Underground / London Overground railway stations, some DLR stations, the Internet, and other locations - which may just comprise a coin operated self-service vending machine. Self-service machines often include some PAYG e-purse value in the purchase price. Most of these locations will also add 'top-up' value - at stations there is a £5 minimum value if done at a ticket office and a 10p minimum value if done at a touch-screen ticket machine (the latter being the smallest / lowest value coin these machines accept). At one time passengers buying Travelcard season tickets would be given an Oyster card free of charge, however nowadays when obtained in London all passengers are charged a deposit of £5.00 (prior to January 2011 the deposit was £3.00) which is normally fully refunded if the card is returned - providing that the e-purse is not in debit - otherwise only the balance will be refunded.

For the convenience of visitors from outside of London, Oyster cards can also be bought on some aircraft and trains travelling towards London, at most of London's main airports, via the Oyster website (they will post overseas) and from travel agents in 25 countries planetwide. Sometimes these retailers charge a different fee than the usual amount. Visitor Oyster cards usually include some PAYG e-purse funds so can be used immediately. This is very convenient for passengers arriving from overseas at Heathrow and City airports, plus the St Pancras Eurostar terminal, as it means that they can ignore the often long queues in the ticket sales area and walk straight to the platforms.

Visitors to London who are interested in the transport systems may also find this website to be of interest. Although part of citytransport.info this page will open in a new window london-railfan.info.

Depending on the amount (ideally 'very little') and how it was purchased e-purse values may be refunded in cash or by other ways, which may be by a cheque sent via the post (this may not be very useful for overseas visitors - although they could always retain the Oyster card for a future visit, or give it to a friend about to visit London). To avoid fraud (for instance: in case it was stolen) e-purse values added to an Oyster card which were paid for using credit / debit / charge plastic cards are never refunded in cash. Lost or stolen Oyster cards may attract a handling fee to replace.

Whilst Oyster cards can be used on virtually all rail services in London only some mainline railway stations sell them or offer the facility to 'top-up' (ie: add monetary value to the e-purse). In addition, some mainline railway stations still issue paper Travelcard season tickets and for longer durations may also require passengers to have photocards. Photocards require a passport photograph and have a serial number which to prevent other people using them is written on the paper season ticket.

Note that unlike many cities overseas, there are no additional or handling fees for a top-up whether paying by cash, automated systems from a bank account or using a plastic card. So if an Oyster Ticket Stop tries to charge a fee then this should not be paid and an official complaint should be made to the Oyster helpline.

Touch In, Touch Out

To use Oyster PAYG passengers must ensure that their ticket is electronically read by an Oyster card reader for every journey. This is known as touch in and touch out. It is the passenger's responsibility to ensure that it is read properly. The card reader will indicate whether this has been done - in general a green light or a ticket barrier which opens means that all is well. For PAYG users train journeys require a minimum amount of e-purse value to be on the card to start the journey - the amount will depend on the type of transport being used.

On the buses PAYG passengers must touch in when boarding at the start of every journey. For tram travel the card readers on the platform should be used prior to boarding the tram. This will deduct the correct amount of money, but will not allow the card to go into a negative balance. As these transports charge a flat fare there is no need (or facility) to touch out. Special conditions apply to tram users at Wimbledon station - see below.

When a passenger who is using PAYG touches in at the start of a railway journey a deposit (exact amount depends on where they are and which railway company controls the station) is deducted from the PAYG e-purse value on their Oyster card. When they touch out at the end of the journey, the deposit fee is refunded, minus the appropriate Oyster fare for the journey. Passengers who fail to touch in run the risk of being seen as travelling without a valid ticket, which can lead to a penalty fare being charged, or even their being taken to court for fares evasion.

Oyster card readers are to be found on buses, tram stop platforms, on DLR stations before the fares paid area, and combined as part of the ticket barriers at railway (and underground) stations. Where stations do not have ticket barriers they will have stand-alone card readers. Some interchange points between the mainline railways and the DLR / underground also have stand-alone card readers (ie; without barriers) which depending on ticket type and journey may need to be touched before interchanging - even if it means missing a connecting train (or tram). To ensure that they are charged the correct fare for their journey PAYG Oyster card users must also remember to touch in/out at stations where the ticket barriers are open.

Whilst passengers with weekly or longer season tickets are recommended to touch in/out at all times, including free-standing card readers and if a ticket gate is open, as a general theme they do NOT have to do so. An example of when touching is an absolute requirement is when travelling to / from stations in zones outside those covered by the season ticket and paying the balance using the stored PAYG value. This includes passengers making journeys which can follow several different routes through different fare zones and who are choosing to travel via a cheaper route - even though it may be slower - and who will be using the special pink 'route validator' card reader to tell the Oyster system that their journey followed a specific route. (See 'Different Routes Attract Different Fares' below).

Passengers with season tickets must have their Oyster card with that season ticket loaded on it in their possession at all times whilst travelling - accidentally leaving it behind (ie: at home) is not accepted as an excuse. If caught passengers travelling without possession of their Oyster card could result in them being treated as suspected criminals trying to avoid paying a fare.

Wimbledon Station

Special requirements apply to tram passengers using Wimbledon station using PAYG or a BusPass. This is because the trams (which use the same fare scale as the buses) call at a platform inside a railway station where the trains all use railway fare scales. To ensure that the correct fare is charged tram passengers starting their journey from the street will therefore have to touch in twice - first to pass the ticket barrier (a process which registers an entry to the station) and then on the tram platforms - a process which changes that station entry to a tram journey. Following these procedures will also ensure that PAYG fares capping is applied correctly, if applicable. Failing to follow this procedure will result in the passenger being charged the 'maximum cash fare' - in theory this also applies to passengers who have an otherwise valid BusPass.

Tram passengers travelling TO Wimbledon using PAYG or a BusPass must remember to touch in at the start of their tram journey, because if they do not then when they touch out at Wimbledon to leave the station they will be treated as if they made a railway journey but did not touch in when starting that journey and charged the maximum (underground railway) cash fare.

PAYG users intending to interchange from the mainline railways or underground to the tram do not need to touch out because touching in on the tram card reader on the tram platforms will both end a railway journey and charge a tram fare. PAYG users interchanging from tram to underground or mainline railway only need to touch in using card readers on either the Thameslink mainline railway platform No.9 or underground platforms Nos.1-4. PAYG passengers who arrived here by tram but are leaving on SouthWest Trains platforms Nos. 5-8 must also touch in, but as SWT have not installed Oyster card readers on their platforms they must use those on either platform Nos. 9 or 1-4. NB: in all these instances PAYG passengers MUST use yellow Oyster card readers - and NOT the pink Oyster card readers.

BusPasses are not valid on the trains, so passengers using these should be using a different ticketing solution if interchanging to / from a railway service. If that is PAYG then they need to follow the PAYG procedures detailed above

Passengers interchanging here who are using a mix of paper tickets and an Oyster card (in PAYG mode) to pay their fares for different portions of the entire journey need to touch in/out using the free standing Oyster card readers (which are on platforms Nos. 1-4 and 9) to start or end the PAYG portion of their journey, as appropriate. If unsure then perhaps the 'safest' solution (as far as fares payments are concerned) is to leave the fares paid area using the ticket or Oyster card they used when travelling TO Wimbledon and then re-enter the fares paid area with the ticket or Oyster card they intend to use for the next part of their journey.

Enticements

There is a twofold policy of enticements to encourage people to switch from paying in cash to Oyster.

• Virtually all underground, DLR, bus & tram single tickets are cheaper if paid for electronically using the PAYG e-purse rather than by cash. The potential savings can be more than 50%! The aim is to speed up bus journeys and reduce ticket queues at station ticket offices. For this reason visitors from outside London may find that it is very financially advantageous to never pay cash - and instead either buy a BusPass, Travelcard or use Oyster PAYG.
• There is a 'capped fares' policy whereby people who make multiple single fare journeys in one day and pay for them electronically using the PAYG e-purse will be not be charged a daily total that is greater than the cost of a paper one-day ride-at-will Travelcard. (Bus passengers have their fares capped at less than the cost of 4 bus fares). A 'day' is considered to be a 24 hour period between 4.30am and 4.30am the next morning. To take advantage of fares capping a traveller must ensure that they touch in/out when commencing and ending every railway journey and when starting every bus/tram journey - even if they have already reached the cap on that day. Otherwise (when travelling by train) they will be charged the maximum single fare (as described above) and the cost of the journey will not be included in the capping. This applies at all times - even if the ticket barriers are open, or if there are just card readers instead of ticket barriers. If touching in/out is not possible (for instance, if the power grid fails and nothing electronic works) then they must contact the Oyster helpline.

Time Based Fares

The concept of different peak and off-peak fares is not new, and it is also used with Oyster PAYG. Peak fares are charged between 06:30 to 09:30 in the mornings and 16:00 to 19:00 (4pm to 7pm) in the evenings on Mondays to Fridays, except public holidays. At all other times the cheaper off peak fares are charged. Special arrangements apply at a few outer-suburban stations with the peak fare time ending slightly earlier - publicity should be available at the stations concerned. PAYG peak / off peak fares are determined by the time the passenger touches in. This means that if a passenger wishes to catch a train timed to leave a station after 9:30 (am) then they should not touch in before that time, or they will be charged the peak fare. Fares capping works with time based fares to always charge the lowest fares, so that if the total cost of a day's travel journeys is less than the peak cap then the system will charge separately for any journeys taken during peak hours, plus the off-peak cap. As from January 2011 passengers starting their journeys in the outer zones who travel by many (not all) of the rail services into London Zone 1 during the evening peak are charged off-peak fares. This reflects that they will usually be travelling against the main peak flow.

PAYG Benefits: Freedom From Fixed Ticketing

The introduction of the Oyster system has led to a revolutionary change in fares and ticketing within London, significantly reducing the time it takes passengers boarding buses to pay their fares / have passes 'read' and reducing queues at station ticket offices.

PAYG means that many of the advantages of period tickets are now available to everyone - even infrequent travellers - who on arrival at railway stations just walk straight past the ticket sales area to the ticket barriers, where they touch in and then continue directly to the platforms.

The many ways to add PAYG value to the Oyster card e-purse has resulted in a significant reduction in numbers of people using staffed ticket office windows, although this does represent a double-edged sword in that it can result in staffed ticket office windows being closed with transport employees losing their jobs (or redeployed on other job functions). In March 2010 it was reported that...

• Ticket office use is down 50% compared with five years previously - it is presumed that this refers to staffed ticket office windows / does not include self service machines.
• Only about one in twenty (20) journeys start with a visit to the ticket office - although the information does not state whether this is staffed ticket offices only or includes using self-service ticket vending machines within the wider ticket sales area,
• 80% of all journeys on the Underground are made using Oyster cards - although this data does not separate season ticket holders from other passengers - the significant issue being that the former already travelled without needing fresh tickets for each journey.