Ahh, the joys of privatization: The Chicago Transit Authority's new fare collection system

[marmar]

By Jon Hilkevitch, Chicago Tribune reporter
6:58 a.m. CDT, March 20, 2013


A long list of convenience fees and other unexpected charges awaits CTA and Pace Ventra fare-card customers who sign up for an optional prepaid debit card account, a Tribune analysis of the more than 1,000-page CTA contract reveals.

The agreement the CTA reached with its private-sector partners looks like a good one for the perennially cash-strapped transit agency, which will receive a continuous stream of nonfare revenue generated by the host of debit card fees.

But for prospective Ventra customers who are thinking about accepting the offer of a MasterCard prepaid debit account to make retail purchases on the same Ventra card they use for transit fares, it will be vital to closely read the legal jargon in registration documents to avoid costly surprises, consumer experts warn. The Ventra debit card fees have not been previously disclosed by the CTA and Pace.

Ventra debit customers who fail to do their homework will likely be unaware that the charges can quickly pile up — until they see their account statement, which carries a $2 fee if a paper copy of transactions is requested, according to the Ventra contract. ..................(more)

The complete piece is at: http://www.chicagotribune.com/news/local/ct-met-cta-ventra-hidden-fees-0320-20130320,0,2928286.story

[Newsjock]

1. Same fee-skimming crap is in the news in Oakland today

http://www.sfgate.com/bayarea/article/Oakland-debit-card-fees-draw-criticism-4368734.php

Oakland residents who use the debit function of the city's long-awaited municipal identification card will be charged much more in fees than they would pay if they chose a comparable prepaid card from a store, according to Consumers Union, the advocacy arm of Consumer Reports.

The organization, which has examined a variety of prepaid cards for several years, says that Oakland's dual-purpose identification and debit card imposes an unusual combination of fees and takes advantage of the poor and disenfranchised population it was intended to help.

For example, if the cardholders enroll the card for federal benefits, they are charged $2. Oakland's card also charges $1 every time money from federal benefits is put on the card via direct deposit.

Michelle Jun, a senior attorney for Consumers Union, said she had never heard of a prepaid card with those fees.

[Ikonoklast]

2. What a great way to entice people to use public transit! Rip them off when they do!

Let's run every public utility like a for-profit corporation!

Except...


Most corporations fail.

[Orrex]

3. What's the big deal? It's not as though this will disproportionately screw the poor & middle class.

Oh, wait. That's exactly what it will do. Like everything else.

[Cal Carpenter]

4. Ah, the "efficiency" of the "free" market n/t

(edited to put quotes on 'free')