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On the bus
If the Chicago Transit Authority decides to distribute fare cards at ATMs throughout the city, Chicagoans may never have to fumble for quarters on the bus again. The CTA is working with Cash Station, the city's dominant EFT network, which became part of the MAC Network after it was acquired by MAC owner Concord EFS earlier this year. Noting that Cash Station dispenses stamps at about 100 ATMs in the city, Cash Station President and CEO Steve Cole said, "We're already spitting stamps out of ATMs. (Fare cards) are just another thing to sell." Like a stamp sale, purchasing a fare card would be handled as a standard POS transaction, with funds automatically debited from a cardholder's account. The CTA thinks the idea of distributing cards at ATMs "has a lot a potential," said spokeswoman Noelle Gaffney. "They're located throughout our service area, and people use them already." The fare cards have been "embraced by customers" since they were introduced three years ago, Gaffney said. Vending machines located at train stations dispense the cards in various denominations of up to $100. While popular with train riders, the machines aren't as convenient for those who ride the bus. Cards also are sold at some grocery stores and currency exchanges. Riders would likely pay no additional charge to purchase the cards at ATMs. A sales commission paid by the CTA would be split between the machine owner and card-issuing bank, Cole said. Several banks have expressed interest in dispensing the cards at their ATMs. Cole is uncertain of how many of the area's approximately 4,000 ATMs would become part of a distribution network. "Clearly we would want a mix of different socioeconomic neighborhoods" to serve the CTA's diverse ridership, he said. Educating riders would be a key to acceptance, he added. "We know the technology works, but are bus riders going to want to do this?" In the early days of ATM deployment, Cole said, banks often posted employees near new machines for a month or two to help guide customers through transactions. "The only way to get over the fear of first-time usage was to drag John Q. Public over to the machine and show him how to use it." He thinks a similar approach might work well for the CTA. Any proposal will have to be approved by the CTA Board. If board approval is obtained, Cole said Cash Station could have a pilot up and running in under six months. If successful in Chicago, Cole thinks the concept could spread to other metro areas. "Our new owner is in a lot of major cities, and they may be interested in looking at doing this in other areas."
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