LTFRB orders removal of charges, fees on cards for cashless fare system

The Land Transportation Franchising and Regulatory Board (LTFRB) on Wednesday issued a directive prohibiting public utility vehicle (PUV) operators and their chosen automated fare collection system (AFCS) provider from imposing any fees or charges in the use of cards for commuters.

“Now therefore, for and in consideration of the foregoing, and to alleviate the burden of the riding public, this Board hereby directs all public utility vehicle (PUV) operators and/or automatic fare collections systems (AFCS) to remove any charges or fees imposed for the purchase/use of their cards on top of the fare load,” the LTFRB said in its Memorandum Circular No. 2020-057.

“Failure of the concerned operator and/or provider to comply with this issuance shall cause for the immediate suspension of the automatic fare collections system, aside from the penalties to be imposed pursuant to existing issuances of this Board against the operators concerned,” it said.

READ: The Land Transportation Franchising and Regulatory Board orders PUV operators and automated fare collection system providers to remove fees, any charges imposed for the purchase of cards on top of fare load. @gmanews pic.twitter.com/rgbAZFT52s

— Ted Cordero (@Ted_Cordero) October 7, 2020

President Rodrigo Duterte on Monday ordered the Department of Transportation (DOTr) and LTFRB to make Beep cards used in the EDSA Busway system free of charge. 

This was after many commuters were caught off guard by the “no Beep card, no ride” policy implemented at the EDSA Busway.

The stored value card was sold as P80 each.  Further, each card must have a P65 maintaining balance before it could be used.

On Sunday, the DOTr suspended the mandatory use of Beep cards at the EDSA Busway after the AF Payments Inc., operator of the automatic fare collection system, refused to make the cards free.

AFPI clarified that it does not earn from the sales of Beep cards and it is sold at cost.

Later, the company announced it will issue 125,000 Beep cards for free “to ease the burden of passengers who have challenges buying a Beep card.”

But the DOTr is still studying AFPI’s proposal as agency considers other interested AFCS providers that will be distributing cards for free.

“We note the offer of Beep to provide 125,000 cards. But that is different from the actual call which is for beep to waive their card fee (P80) and other charges such as reloading fee, convenience fee, among others,” Transportation Assistant Secretary Goddess Libiran said.

“We will discuss their offer in due time, but to date, the 'no beep card no ride policy' is still suspended in the EDSA Busway. A dual payment system will still be honored,” Libiran said.

LTFRB's MC 2020-057 will be effective immediately upon publication in at least one newspaper of general circulation. The agency is targeting to publish the circular on October 8.

The circular covers all road transport PUVs, according to Libiran.

Meanwhile, she said the DOTr is opening its doors to other AFCS providers “who can provide a better solution.”

“We are open to the idea of having multiple service providers, as long as their systems are ready for integration and interoperability, and no fee shall be charged to commuters for the purchase/use of their system,” she added. —LBG, GMA News