TX: METRO plans $2 fee for new bus fare card as part of system update

Aug. 21, 2024
Houston Metro is introducing a new system for commuters, including a tap-to-pay option with credit or debit card and a $2 fee for replacing fare cards, which applies to all riders.

Aug. 20—The Metropolitan Transit Authority is introducing a new system for commuters, including a tap-to-pay option with credit or debit card and a $2 fee for replacing fare cards, which applies to all riders.

METRO's board of directors will decide if it's moving forward with the plan Thursday. The new plan is an effort to cut down on the agency's sunk costs and provide accessibility for infrequent riders who don't have a Q card or don't have the cash to pay the fare upfront. The new system, which is expected to begin operating next summer, will allow any passengers to use Apple Pay or Google Pay or use their chip-enabled credit card to tap their debit or credit card.

The fare upgrade will move the transportation agency into the modern world of contactless pay, but it does mean new and current Q card holders will have to pony up $2 to receive a brand-new card that works in the modern system, and for any future replacements.

According to the Houston Chronicle, the current fare system of offering free Q cards actually costs the agency millions in sunk costs. Russ Frank, METRO's vice president of customer service told the newspaper that cards cost the agency about $1.80 in addition to a million cards with negative balances that amount to $818,000 of revenue lost to the agency since the fare card launched in 2008.


This negative balance comes from courtesy return trips for riders, according to Frank. The agency allows Q card rides to go through, even if a rider has $1 left, allowing the person to pay the $1.25, creating a negative $.25 balance.

The proposed upgrade of the fee system aims to improve efficiency by replacing antiquated equipment with modern scanners and machines.

"It is pretty much falling apart," Frank said of the current system of Q card scanners, cash machines and ticket vending machines at rail stations, per the Chronicle.

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