Fare Collection Back Office

Fare Collection Back Office

A Fare Collection Back Office (FCBO) is the central system that manages, processes, and reconciles fare payments in a public transportation network. It plays a crucial role in modern fare collection by handling transactions from various payment sources, ensuring accurate revenue distribution, and supporting real-time operational insights.

Key Functions of a Fare Collection Back Office

Transaction Processing

  • Collects and processes payments from multiple sources, such as contactless bank cards (open-loop), transit smart cards (closed-loop), mobile wallets, and QR codes.
  • Handles fare validation and fare capping rules.

Revenue Management & Settlement

  • Allocates fare payments to the appropriate transit agencies or operators.
  • Ensures financial reconciliation between banks, payment providers, and transport authorities.

Account-Based Ticketing (ABT) Support

  • Maintains customer accounts, allowing users to travel without needing a preloaded balance.
  • Processes post-payment settlements based on actual travel.

Data Analytics & Reporting

  • Provides insights into ridership trends, fare evasion, and system performance.
  • Helps optimize fare policies and detect fraudulent activities.

System Integration

  • Connects with various front-end devices (validators, kiosks, ticket vending machines).
  • Integrates with banking and financial systems for payment processing.

Security & Compliance

  • Ensures data security through encryption and tokenization.
  • Complies with transit payment standards (e.g., PCI-DSS for card payments).