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Electronic Payment Systems (EPS)

Electronic Payment Systems (EPS). CITE EPS Modules 11 and 12 Version 2. Electronic Payment Systems (EPS). 1. Issues and Problems 2. EPS Requirements 3. EPS Applications 4. EPS Technologies 5. EPS Case Studies 6. EPS Evaluation 7. Summary. Electronic Payment Systems (EPS).

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Electronic Payment Systems (EPS)

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  1. Electronic Payment Systems (EPS) • CITE EPS • Modules 11 and 12 • Version 2

  2. Electronic Payment Systems (EPS) • 1. Issues and Problems • 2. EPS Requirements • 3. EPS Applications • 4. EPS Technologies • 5. EPS Case Studies • 6. EPS Evaluation • 7. Summary

  3. Electronic Payment Systems (EPS) • 1. Issues and Problems • 1.1. Transportation Agency Perspective • 1.2. Customer Perspective

  4. Electronic Payment Systems (EPS) • 1. Issues and Problems • 1.1. Transportation Agency Perspective • Costs and liability associated with coin and cash collection • Accurate data collection and reporting • Intermodal coordination • Flexibility in fare policy implementation • Reduction of fare evasion and fraud

  5. Electronic Payment Systems (EPS) • 1. Issues and Problems • 1.1. Transportation Agency Perspective • 1.2. Customer Perspective • Problems associated with need to have exact change • Difficulties associated with intermodal transfer and multiple fares • Need for a single payment medium accepted by various transit agencies, other transportation providers, and retail stores

  6. Electronic Payment Systems (EPS) • 2. EPS Requirements • 2.1. Convenience • 2.2. Flexibility • 2.3. Higher throughput • 2.4. Durability • 2.5. Reliability • 2.6. Security • 2.7. Cost efficiency • 2.8. Cost effectiveness

  7. Electronic Payment Systems (EPS) • 2. EPS Requirements • 2.1. Convenience • EPS should be more convenient to use then cash or tokens • The value and frequency of card downloads should meet customer needs • The cardholder should be able to regain value of lost card

  8. Electronic Payment Systems (EPS) • 2. EPS Requirements • 2.2. Flexibility • EPS should facilitate the use of a single medium for several interrelated applications such as road tolling, different modes of transit, and parking • EPS should aid transportation providers in implementation of more efficient and equitable fare policies

  9. Electronic Payment Systems (EPS) • 2. EPS Requirements • 2.3. Higher throughput • EPS should accommodate high transaction speeds and large volumes of transactions at peak hours • EPS throughput performance should be at least as good as cash and token payment systems

  10. Electronic Payment Systems (EPS) • 2. EPS Requirements • 2.4. Durability • Durability of an electronic payment medium should be in accordance with its production cost, stored value, and purpose • All components of the EPS should be designed to address specific transportation environments such as high levels of vibration, dust, frequent and significant temperature changes, etc

  11. Electronic Payment Systems (EPS) • 2. EPS Requirements • 2.5. Reliability • Mean time between incidents (MBTI) for various EPS components should be better than corresponding MBTI for cash and token payment systems • Probability value of EPS incidents should be lower than this value for cash and token payment systems

  12. Electronic Payment Systems (EPS) • 2. EPS Requirements • 2.6. Security • EPS should address a set of security issues such as accuracy of transactions and data integrity • All customer databases should be protected against improper use and unauthorized access and be kept confidential as much as possible • Repudiation issues should also be taken into account

  13. Electronic Payment Systems (EPS) • 2. EPS Requirements • 2.7. Cost efficiency • EPS operating costs per unit of service output should be lower than that for cash or token payment systems

  14. Electronic Payment Systems (EPS) • 2. EPS Requirements • 2.8. Cost effectiveness • EPS operating costs per unit of service consumption should be lower than that for cash or token payment systems • Superior characteristics of EPS should increase patronage of a particular service

  15. Electronic Payment Systems (EPS) • 3. EPS Applications • 3.1. Public Transit • 3.2. Road Tolling • 3.3. Parking • 3.4. Multipurpose

  16. Electronic Payment Systems (EPS) • 3. EPS Applications • 3.1. Public Transit • 3.1.1. Rail • 3.1.2. Motorbus

  17. Electronic Payment Systems (EPS) • 3. EPS Applications • 3.1. Public Transit • 3.1.1. Rail • As of today, most EPSs on transit have been designed for rail rapid systems • However, commuter rail and light rail are often integrated into regional transportation services

  18. Electronic Payment Systems (EPS) • 3. EPS Applications • 3.1. Public Transit • 3.1.1. Rail • 3.1.1.1. Anticipated benefits • 3.1.1.2. Centralized architecture • 3.1.1.3. On-line mode

  19. Electronic Payment Systems (EPS) • 3. EPS Applications • 3.1. Public Transit • 3.1.1. Rail • 3.1.1.1. Anticipated benefits • Increased throughput • Lower maintenance costs • More flexible fare policies

  20. Electronic Payment Systems (EPS) • 3. EPS Applications • 3.1. Public Transit • 3.1.1. Rail • 3.1.1.2. Centralized architecture • One of intrinsic characteristics of fare collection systems for rail rapid transit is that fare collection equipment is permanently installed at station entrances and can be operated from a central computer

  21. Electronic Payment Systems (EPS) • 3. EPS Applications • 3.1. Public Transit • 3.1.1. Rail • 3.1.1.3. On-line mode • Due to the fact that all fare collection equipment for rapid rail is permanently installed at specified locations and can be linked to a central computer, the entire fare collection system can work in an on-line mode (i.e. every payment transaction can be recorded to the main database and authorized by a central computer)

  22. Electronic Payment Systems (EPS) • 3. EPS Applications • 3.1. Public Transit • 3.1.2. Motorbus • Fewer efforts have been made to implement EPS on motorbus and light rail systems • Major challenges associated with EPS implementation on motorbus systems result from relatively high EPS capital costs and necessity to install EPS validation and authorization equipment on individual vehicles

  23. Electronic Payment Systems (EPS) • 3. EPS Applications • 3.1. Public Transit • 3.1.2. Motorbus • 3.1.2.1. Anticipated benefits • 3.1.2.2. Distributed architecture • 3.1.2.3. Off-line mode

  24. Electronic Payment Systems (EPS) • 3. EPS Applications • 3.1. Public Transit • 3.1.2. Motorbus • 3.1.2.1. Anticipated benefits • EPS on motorbus systems can contribute to substantial improvements in boarding times, help to lower stress on a driver, and lead to more flexible fare structure

  25. Electronic Payment Systems (EPS) • 3. EPS Applications • 3.1. Public Transit • 3.1.2. Motorbus • 3.1.2.2. Distributed architecture • EPS has not been rigorously adapted for motorbus and light rail systems is that validation and authorization equipment has to be installed on each vehicle • In addition, this equipment tends to be more expensive due to the fact that a card reader on each vehicle performs many functions of the central computer in a centralized system • Lower throughput and higher equipment costs make it more difficult to justify investment in EPS

  26. Electronic Payment Systems (EPS) • 3. EPS Applications • 3.1. Public Transit • 3.1.2. Motorbus • 3.1.2.3. Off-line mode • In addition to higher equipment costs associated with the distributed architecture EPS, the necessity to operate the system in off-line mode creates a greater potential for data loss and fraud and significantly complicate testing, maintenance, and repair of equipment

  27. Electronic Payment Systems (EPS) • 3. EPS Applications • 3.1. Public Transit • 3.2. Road Tolling • The use of EPS for road tolling promises two major benefits to toll road operators and users. The first benefit results from a large reduction in operating costs of toll collection. The second benefit results form alleviating congestion on toll plazas • However, some critics argue that road users do not save much time because of electronic toll collection. They say that "we are just relieving traffic on the way into more congested areas"

  28. Electronic Payment Systems (EPS) • 3. EPS Applications • 3.1. Public Transit • 3.2. Road Tolling • 3.2.1. Wireless communication system • 3.2.2. Centralized architecture • 3.2.3. On-line mode

  29. Electronic Payment Systems (EPS) • 3. EPS Applications • 3.2. Road Tolling • 3.2.1. Wireless communication system • Capability of validation equipment on toll plazas to communicate with electronic tags in moving vehicles • The system should operate reliably in hostile weather conditions (rain, snow, fog, etc.), be protected against radio interference, and satisfy all security EPS requirements

  30. Electronic Payment Systems (EPS) • 3. EPS Applications • 3.2. Road Tolling • 3.2.2. Centralized architecture (CA) • All validation and authorization equipment is connected to the host computer • CA employs one database for all client accounts and track all transactions. • While this approach helps to eliminate data loss, discrepancy, and fraud, it provides ground for misuse of sensitive personal information (e.g. travel behavior, travel destinations, etc.) and other privacy concerns

  31. Electronic Payment Systems (EPS) • 3. EPS Applications • 3.2. Road Tolling • 3.2.3. On-line mode • EPS for road tolling operates in the on-line mode (all transactions are authorized in real time) • Benefits of the on-line mode include higher security and better system diagnosing and management. • Drawbacks include higher then for the off-line mode requirements regarding throughput, reliability, and security of the system

  32. Electronic Payment Systems (EPS) • 3. EPS Applications • 3.1. Public Transit • 3.2. Road Tolling • 3.3. Parking • Most often sited benefits of EPS for parking include: • reduction in collection costs, • increase in meter up-time, • reduction in theft-motivated meter vandalism, • improvement in rate flexibility, potentials for parking trend monitoring, and • reduction of fraud

  33. Electronic Payment Systems (EPS) • 3. EPS Applications • 3.1. Public Transit • 3.2. Road Tolling • 3.3. Parking • 3.3.1. Distributed architecture • 3.3.2. Off-line mode • 3.3.3. Vandalism concerns • 3.3.4. Security concerns

  34. Electronic Payment Systems (EPS) • 3. EPS Applications • 3.3. Parking • 3.3.1. Distributed architecture • EPS for parking employ distributed architecture concept where some of the functions of a central computer are performed by individual parking meter equipment • Parking service personnel uploads data from parking meters and transfers it to the central computer database on a regular basis

  35. Electronic Payment Systems (EPS) • 3. EPS Applications • 3.3. Parking • 3.3.2. Off-line mode • Individual parking meter EPS equipment operates in off-line mode • Since there is no direct communication link between the central computer and the parking meter EPS equipment, each piece of equipment should meet requirements toward its own power supply, security, memory capacity, and other essential parameters

  36. Electronic Payment Systems (EPS) • 3. EPS Applications • 3.3. Parking • 3.3.3. Security concerns • Security concerns become especially important for parking EPS • While EPS for rail and road tolling operate in the on-line mode (thus making it easier to detect malfunctioning of equipment or breach of security) and EPS equipment on motorbus is monitored by a bus driver (again making it easier to detect malfunctioning of equipment or breach of security), parking meter EPS equipment operates in the off-line mode and is not monitored on a continuous basis

  37. Electronic Payment Systems (EPS) • 3. EPS Applications • 3.3. Parking • 3.3.4. Vandalism concerns • Theft-related and other meter vandalism is yet another question that should be considered • The data loss caused by vandalism should not jeopardize the integrity of the whole system

  38. Electronic Payment Systems (EPS) • 3. EPS Applications • 3.1. Public Transit • 3.2. Road Tolling • 3.3. Parking • 3.4. Multipurpose • Multipurpose EPS can integrate a variety of services and be operated by several institutional parties • The ultimate solution to the multipurpose card concept is the so-called "e-purse" that would permit its holder to pay for all small purchases and services within a large geographic region with a single card

  39. Electronic Payment Systems (EPS) • 3. EPS Applications • 3.1. Public Transit • 3.2. Road Tolling • 3.3. Parking • 3.4. Multipurpose • 3.4.1. Transit-Parking • 3.4.2. Transit-Parking-Tolling • 3.4.3. Transit-Parking-Tolling-Gas/Phone/Vendors/Bank

  40. Electronic Payment Systems (EPS) • 3. EPS Applications • 3.4. Multipurpose • 3.4.1. Transit-Parking • One of the most basic schemes of multipurpose EPS is the one that serves one or more transit modes and parking at park-and-ride facilities • Such a scheme can be administered by a single transit agency or a group of transit agencies • Fares, transfers, and discounts can be coordinated by participating agencies in order to provide incentives for transit riders

  41. Electronic Payment Systems (EPS) • 3. EPS Applications • 3.4. Multipurpose • 3.4.2. Transit-Parking-Tolling • A higher level of integration is achieved when transit agencies, toll road authorities, and parking service providers join their efforts to administer a single payment medium for all transportation services in a given region

  42. Electronic Payment Systems (EPS) • 3. EPS Applications • 3.4. Multipurpose • 3.4.2. Transit-Parking-Tolling

  43. Electronic Payment Systems (EPS) • 3. EPS Applications • 3.4. Multipurpose • 3.4.3. Transit-Parking-Tolling-Gas/Phone/Vendors/Bank • The highest level of integration is reached when a single payment medium is used to pay for transportation, gas, and phone and to make purchases at retail stores and restaurants • In this case, a single party or a consortium can administer the system whereas the number of participants in the scheme can be unlimited

  44. Electronic Payment Systems (EPS) • 4. EPS Technologies • 4.1. Security Criteria • 4.2. EPS Architecture and Components • 4.3. Electronic Media Types and Characteristics

  45. Electronic Payment Systems (EPS) • 4. EPS Technologies • 4.1. Security Criteria • 4.1.1. Accuracy • 4.1.2. Data Integrity • 4.1.3. Confidentiality • 4.1.4. Impersonality • 4.1.5. Repudiation

  46. Electronic Payment Systems (EPS) • 4. EPS Technologies • 4.1. Security Criteria • 4.1.1. Accuracy • The risk of a random error (most often due to a poor mechanical contact between the card and reader or radio/magnetic interference) should be minimized • A number of security techniques, such as message authentication checks, should be incorporated into system design in order to provide high level of accuracy

  47. Electronic Payment Systems (EPS) • 4. EPS Technologies • 4.1. Security Criteria • 4.1.2. Data Integrity • Any accidental alteration of or unauthorized access to the data stored on the card or transmitted over the network should be minimized • Different forms of encryption help to maintain data integrity on the card and during data transmission

  48. Electronic Payment Systems (EPS) • 4. EPS Technologies • 4.1. Security Criteria • 4.1.2. Data Integrity

  49. Electronic Payment Systems (EPS) • 4. EPS Technologies • 4.1. Security Criteria • 4.1.3. Confidentiality • Information stored in the system or on the card must be protected against improper use and unauthorized access (either malicious or accidental) • Strict access control and encryption should be employed to protect confidentiality and privacy of clients

  50. Electronic Payment Systems (EPS) • 4. EPS Technologies • 4.1. Security Criteria • 4.1.4. Impersonality • Different personal identification techniques should be considered in order to avoid access to the system by someone other than the cardholder • Passwords and personal identification numbers (PINs) can be used to approach this problem

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