Article Highlights
A New York Metropolitan Transportation Authority fare official is calling on U.S. payments networks Visa and Mastercard to set a standard–and lower–interchange rate for transit agencies. Interchange is very high for U.S. agencies that accept open loop, but such networks as Visa have been offering lower fees on an agency-by-agency basis, apparently has part of a “pilot.”
For example, for a rider in the U.S. who taps a Visa- or Mastercard-branded debit card or wallet credential to pay a fare, the agency would pay an interchange fee of $0.23, most of that fee fixed. This interchange would amount to 11.5% on a $2 fare transaction.
• MTA (New York)
• MTS (San Diego)
• Visa
• Mastercard
New York Metropolitan Transportation Authority fare official Amy Linden today called on U.S. payments networks to set a uniform transit interchange rate that reduces high fixed fees most agencies must pay to accept open-loop payments.
“(It’s) something we’ve always asked for, getting a transit rate,” she said, speaking at the Transport Ticketing North America conference in Chicago. “Government, higher education, lodging industry all
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