Central Clearing House System

Central Clearing House System

A Central Clearing House System (CCHS) in the context of public transportation is a centralized financial and data processing hub that facilitates fare transactions, settlement, and reconciliation among multiple transit agencies, payment providers, and banks.

CCHS ensures seamless interoperability between different fare collection systems and enables a unified payment ecosystem across cities, regions, or even entire countries.

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Key Functions of Central Clearing House System (CCHS)

Transaction

Transaction Processing & Validation

  • Collects and verifies payment transactions from various sources (contactless cards, mobile wallets, QR codes, smart cards).
  • Ensures proper fare calculations, including discounts, transfers, and fare capping rules.

Revenue & distribution

Revenue Settlement & Distribution

  • Allocates collected fares to different transit operators based on predefined rules.
  • Manages financial clearing between banks, transport agencies, and payment service providers.
  • Supports multi-modal and multi-operator fare distribution.

Interoperability Management

Interoperability Management

  • Allows seamless travel across different transit networks using a single payment method.
  • Integrates with both open-loop (credit/debit card) and closed-loop (transit-specific card) systems.
  • Enables Account-Based Ticketing (ABT), where fare rules are applied centrally rather than on physical cards.

Data Analytics

Data Analytics & Reporting

  • Generates reports on ridership, revenue, fraud detection, and fare compliance.
  • Provides insights to transit agencies for optimizing routes and pricing strategies.

Security Compliance

Security & Compliance

  • Ensures secure payment processing, adhering to PCI-DSS and other financial regulations.
  • Uses encryption and tokenization for data protection.