June 11, 2009
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News: Chicago Metra Accepts CC Payment
Chicago Metra riders will finally be able to use their credit cards to pay for fares. The Illinois State House and Senate have passes legislation to push Metra into updating their systems to align with new technology and meet the standards already set by the Chicago Transit Authority (CTA.) The CTA has been accepting credit card payment for fares for a number of years. The bill was introduced by Illinois State Senator Michael Bond (D-Grayslake) in response from customers who wanted Metro to update their ticketing system. Metra says to launch the program it will cost nearly $2.2 million to install new machines and setup online payment. Based on a 75% participation rate, they estimate it will cost another $3 million to $5 million a year in credit card processing fees.
Originally the new program was expected to be in place by February 2010; however, Metra has stepped up its plans to enable commuters to use their debit and credit cards to purchase 10 ride tickets and monthly passes online in September. However, commuters will have to wait until February 2010 before they are able to purchase tickets with their credit cards at train stations. The new legislation which prohibits Metra from rejecting the upgrade will not provide any funding; and, therefore Metra plans on asking the Regional Transportation Authority (RTA) to assist with funding.
In addition to the funding issue, there's one other glitch in the plan; over 40 % of Metra commuters use "transit checks." Commuters get transit checks from their employers to pay for monthly passes. These checks are tax-free for workers to be applied exclusively toward payment of their Metra passes. Since the checks must go to Metra, these customers will not be able to purchase their passes by debit or credit card. According to a Metra spokeswoman, Judy Pardonnet, Metra will be working with the RTA in finding a resolve of the issues. The bill is expected to be signed by Illinois Governor Pat Quinn within the next few days.