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Industry News

Long Island Rail Road pilots credit card payment processing initiative

By Lauren Lindberg

20/09/2011 - Last month, New York's Long Island Rail Road began testing handheld credit card machines that would allow conductors to process plastic payments.

The Ticket Issuance Machine - nicknamed TIM for short - is being piloted on trains running between Ronkonkoma and Greenport, as well as some weekend trains to Montauk. The test will run through October, at which point its effectiveness will be evaluated and a system-wide roll-out may begin. According to Gothamist, 37 of the $1,200 devices are being used in the pilot.

Conductors will leverage Apple iPhone 4 devices to operate the specially designed payment application, which will allow them to print tickets as well as engage in credit card processing. Transactions related to bar cart purchases on the North Fork Wine Train, which showcases a selection of local wines, will also be processed via credit card terminal.

"This device uses the latest technology to offer a real convenience to customers," said LIRR President Helena E. Williams in a statement. "(It) will allow customers to pay for their LIRR fares even when they don't have enough cash on hand. Our younger customers in particular often don't carry cash, (and) it's time for the LIRR to explore how these applications can help provide better customer service."

Williams noted that the technology will help expedite end-of-tour accounting for onboard transactions and potentially reduce the number of onboard fare disputes. In an interview with Newsday, she said that the impetus for the creation of the technology was a series of incidents involving young passengers who had to get off the train to make purchases from ticket vending machines at stations due to the fact that they were not carrying cash. This delayed trains, causing them to run behind schedule.

Having conductors who are able to accept credit cards onboard is convenient for people who aren't carrying enough cash or who arrive at a station too late to purchase a ticket prior to boarding. However, the LIRR still encourages passengers to make ticket purchases before getting on the train whenever possible. To reflect this, an extra fee of as much as $6.50 will be levied against those who purchase tickets onboard despite getting on the train at a station with a ticket machine or ticket window, according to the MTA website. 

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