Automated fare media can come in a variety of formats and can even include credit and debit cards. One key point to remember is that there are two types of systems: open and closed. Open systems accept payment through fare media issued by an entity outside of the transit system, such as a bank or a university. Closed systems only accept payment forms issued by that system.
Transit system management of fare collection can be a costly endeavor and there may be some advantages to outside management of the fare payment system. However, with credit and debit cards, some of the advantages of prepayment will be lost.<ref>Transit Cooperative Research Project. [http://www.trb.org/main/blurbs/153815.aspx “TCRP Report 32: Multipurpose Transit Payment Media.”] 1998.</ref>
== Interagency coordination ==
==Resistance to use of smart cards==
There are many reasons why riders would choose to use cash for fare payment rather than smart cards or other prepaid fare payment. Reasons include the perception that the initial cost of obtaining the card will not be worth the investment, the fear of losing a pre-paid card’s value, concerns about [[Privacy Issues|privacy issues]], and the convenience of cash for the occasional rider.<ref
>Transit Cooperative Research Project. [http:/ /www.trb.org/main/blurbs/153815.aspx “TCRP Report 32: Multipurpose Transit Payment Media.”] 1998.</ref>