The TTC is dipping its toe in the 21st century, promising riders they will be able to use debit cards to pay for their Metropasses at most stations by the end of the year and at all TTC collector booths by next year.

The TTC is introducing the debit system for pass purchases only as a bridge to the Presto fare cards to be installed on most buses, streetcars and in subway stations by 2015.

But it won’t accept more expensive credit card transactions or debit payments for smaller fare purchases such as tokens.

“The big benefit is not having to carry cash,” said TTC chief customer officer Chris Upfold.

Only four TTC stations currently take credit and debit cards. Another four accept debit cards only.

Those eight stations account for about 24 per cent of the system’s Metropass sales. Riders can also buy a Metropass with debit at the TTC’s 32 vending machines. Those machines will not be updated to accept credit cards because they will be obsolete when Presto comes into effect.

The rest of the 1.5 million daily TTC commuters must pay $126 in cash to purchase a pass, an obvious inconvenience, said Upfold.

A recent survey showed only 52 per cent of TTC riders found buying their fare was easy.

“What company would be happy with half their customers telling them it’s not easy to give them money,” said Upfold.

“Buying a ticket is a distress purchase. You don’t want to have to buy it. The more hassle you wrap around that the more distressing it becomes. When you’re giving a company money the company needs to make that as easy as possible.”

So the system will be wired for debit payments at a one-time cost of $570,508, an investment that stands up to the Presto installation. Sixty collector booths will be wired with power and data connections this year and 23 in more difficult locations will be equipped for debit next year, according to a report approved by the Toronto Transit Commission last Friday.

In addition to the customer convenience of debit payments, the move should help lower the cost and security issues of handling so much cash on the TTC, said Upfold.

A Dupont station collector was shot in a robbery on Feb. 26.

As many as four new clerical staff will likely be required to help process the debit payments but the lower cost of handling so much cash around the system will likely offset that cost, said Upfold.

“This is great. But I lament the fact that it’s so long overdue. It shows how much of this operation is from another time,” said Councillor Paula Fletcher (Toronto-Danforth).

Debit on the TTC

Accepting credit cards would cost the TTC $2.26 million more annually, compared with debit only that will cost $753,000 more annually.

Cash purchases take between 10 and 20 seconds on average. A debit transaction takes between 60 and 90 seconds. The addition of debit payments could lengthen lines at collector booths or disperse the business across the system from the eight stations that accept debit and/or credit cards already, say transit officials.

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One-time cost of installing debit card facilities: $380,508 in 2012; $190,000 in 2013

Ongoing cost of debit excluding handling fees would be $668,000 a year starting in 2013.

Handling fees of selling passes via only debit card at all TTC stations would be $85,000 annually.