Scamming the CTA or what?

[Busjack]

I saw the heavily promoted Channel 2 report by Pam Zeckman (web reference here) about hawkers at the L stations and bus stops selling Transit Cards at half price. I can sort of understand how the RTA reduced fare card scam worked, but don't understand how hawkers get their hands on valid transit cards to sell. The web article indicated that CTA was selling them to nonprofits. Is it selling to them at a discount (thereby resulting in the CTA being scammed) or at normal fares (thereby resulting in the nonprofits being ripped off by their clients)?

BTW, this is one of several references of Huberman using his police background at the L stations to deal with miscreants. It's a shame that either there aren't more cops on the system, or more likely, that the CA and police at 95th weren't doing their jobs (at least until Huberman put on the pressure).

Another BTW: After that report, Channel 2 switched to Mike Flannery in Springfield, who said that legislative negotiations were complicated by that latest news. I really doubt that the legislators were affected within 10 seconds, and think Channel 2 was taking a little too much credit.

[busfan4022]

To be simply put, they get them from people who have already bought them, then sell for a cheaper price.

Sorta like street venders you see around town that sell socks for a dollar.

[Buslover88]

I agree with all the above.

[Busjack]

To be simply put, they get them from people who have already bought them, then sell for a cheaper price.

Sorta like street venders you see around town that sell socks for a dollar.

Still doesn't explain who takes the loss.

[busfan4022]

*THE ONES WHO ARE SELLING THE CHEAP CARDS ARE LOSING. They're just a bunch of people trying to make money out of low profits. CTA is still getting all the money since they bought it regardless. ]:

Poor excuse for news. Channel 2 fails.

[rmadisonwi]

No one loses. It's just a bunch of people trying to make money out of low profits. CTA is still getting all the money since they bought it regardless. ]:

That doesn't make any sense.

If someone is selling a product at lower than its face value, somebody is taking a loss.

[busfan4022]

yesyes

Thanks for pointing that out. :rolleyes:

[Busjack]

That doesn't make any sense.

If someone is selling a product at lower than its face value, somebody is taking a loss.

You know it wasn't the person selling it at 95th.

[busfan4022]

._.

Well, they lose more money that way, although they still make a profit. I depends on your view, Busjack, on what loses means to you.

[Busjack]

._.

Well, they lose more money that way, although they still make a profit. I depends on your view, Busjack, on what loses means to you.

As rmadison pointed out, do you believe that hawkers who are selling authentic passes worth $2.25 for $1.00 are running some sort of loss leader clearance sale? They obviously paid nothing for the passes; they were given to them by some welfare agency.

This sure isn't selling a turkey for 69 cents a pound if you buy $30.00 of other groceries, or any other clearance sale.

Maybe they haven't taught you economics in high school yet (I majored in it in college). If you think this is a worthwhile occupation, go to your local outlet, buy a 10 pack of transit cards for $17.50, go to your local rapid transit station, and sell each for $1.00. I doubt that you can make up the losses on volume.

[rmadisonwi]

In Milwaukee (since they still use "old fashioned" tickets and paper transfers), the scheme some have come up with is to split a ticket in half, because they're printed on fairly thick paper, with writing on both sides. Then, when the ticket is put in the farebox, they just make sure that the side with writing on it is face up. The farebox (same type of GFI that is found in Chicago, minus the electronic farecard reader attachment) doesn't know any better. It just measures the length of the paper being inserted.

One of these decades, they might go to a more "advanced" fare collection system, perhaps by buying CTA's old machines when those get replaced.

[nextstopchicago]

To make the story more clear, the scam here is that CTA has made passes available to social service agencies for very specific purposes at reduced cost. Somewhere along the line, someone at one or many of those agencies has started selling the passes at less than face value, but more than he got them for.

It's possible that the passes are being sold by people who requested them from the service agencies, but didn't intend to use them for the appropriate reason, and instead have been selling them. But given the volume, the more likely explanation is that someone has been pocketing large numbers of passes and then selling them to guys on the street who turn them over.

Either way, CTA is not getting the full price of a fare that they should be from riders using such passes illicitly, and very likely the service agency is not being reimbursed, so both are victims.