What is Fare Capping?

What is Fare Capping?

Fare capping means that all passengers will get the best fares based on their public transport usage. Fare capping provides more equity to passengers and gives riders the same rates whether they are buying individual rides or paying for a period pass.

Fare capping means that all transit passengers have access to the best fares based on their public transit behaviors. This process rewards riders for traveling by providing period passes based on their riding usage and spending. Under fare capping, all riders will get fares that are appropriately priced based on usage.

How does Fare Capping work?

There are two types of fare capping: Pre-purchase and Account-based ticketing. In most instances, pre-purchase fare capping works while using mobile ticketing. Passengers often buy these tickets in advance. As the passenger buys more tickets, they can reach the threshold of a period pass, where the app will cap the fare.

Account-Based Ticketing uses fare capping where passengers use their smartphone, smartcard, or contactless debit/credit card to tap, scan, and ride within the network. The back office system calculates the ideal fare for each journey, while charging the riders based on usage. Once the rider reaches the period pass threshold, their fare gets capped.

Valley Metro Light Rail

Bus in city

What are the benefits of fare capping?

Fare capping benefits both passengers and transit agencies. Fare capping ensures the best fares for riders and that they are never overcharged for their trips. This method eliminates the need to seek the best fare, as you are already getting the best value for your journey. It also benefits passengers with unpredictable travel patterns.

Transit agencies benefit by offering ideal fares, encouraging more use of public transit. Fare capping helps reduce boarding times by using tap and scan methods. With fare capping, you are promoting social equity and accessibility to all riders without discrimination. As the transit agency, you keep the right to set the fare caps.


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How can Vix Technology help?

At Vix Technology, we partner with leading transit companies worldwide to deliver groundbreaking technology supported by over 35 years of hands-on knowledge, experience, and insight. We develop long-term partnerships with transit agencies to implement solutions that benefit all parties.
We focus on making sure the solutions we deliver constantly evolve with the needs of the industry and our passengers. Our local product support and service delivery are spear-headed by an experienced, committed, and globally supported organization. If you’d like us to create a more streamlined journey for your passengers and operators, let’s talk.