Metra may start taking credit cards

If credit card is your preferred method of paying for purchases, then Metra's not been your way to really fly.

But the commuter rail agency is expected to take a giant step into modernity in February by allowing riders to use credit cards to buy tickets from station agents or online.

Currently, it's either cash or check and the lack of choice has brought criticism from passengers and lawmakers in Springfield.

On Friday, Metra Executive Director Phil Pagano acknowledged the agency had been conservative about credit card technology and put the blame on himself. But he noted that implementing credit card use was more complicated and expensive than people realized.

"Frankly, we've been holding off given the economic situation," Pagano said. "But clearly, we need to move forward."

Rejiggering Metra's Web site to accept credit card payments might cost between $400,000 and $800,000. Card readers at Metra stations will tally between $400,000 and $500,000 plus $100,000 for phone transmission lines.

Credit companies also have processing fees of about 2 percent amounting to up to $4 million annually, which Metra would likely have to absorb.

The idea would be to allow people to pay by credit at all stations with ticket agents. However, stops on the Metra Electric Line which travels from downtown Chicago to south suburban University Park isn't staffed. Instead, the Electric Line has ticket machines, so Metra is looking at interim measures to put in place this February.

Offering updated ticket machines that take credit cards is an option, but Pagano estimated that could cost up to $50 million plus operating costs.

Regarding Internet purchases, Metra is looking at a system where riders could establish private accounts. People who purchase tickets online would receive them through the mail. Eventually, the agency is looking at technology whereby customers could print up tickets, but there are concerns about fraud that need to be ironed out first, Pagano said.

Sen. Michael Bond, a Lake County Democrat, introduced legislation in March that would require Metra to offer the credit card option at 25 percent of stations by 2010 and throughout the system by 2012.

Agency staff will give a detailed report on the issue in June and the board will likely vote on it.

Chairman Carole Doris hoped the move would pre-empt General Assembly action, saying the proposed legislation was the "poster child" of unfunded mandates.

"We will look at this carefully. We want to make a good business decision," said Doris, who represents DuPage County.

Metra directors also voted to spend $6.6 million to upgrade the agency's revenue accounting computer software, which is outdated. This will enable the switch over to credit cards, officials said.