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The fare is meant to cover operational costs of the transit system, although in many cases, operations are heavily subsidized by the government. Many bus and rail systems in the United States only cover about 1/3 of their operational costs through fares.
There are many different rule sets regarding how and when fares must be paid and how long they are valid. In train and bus rapid transit systems, fares are usually paid before boarding. Many bus systems require riders to pay as they board the vehicle. Taxis and other vehicles for hire usually request payment at the end of the ride.
On some systems, fare transfer s can be used, meaning that only one payment needs to be made for traveling within a particular region or time period. This is helpful for people who need to go from one transit line to another in order to reach a destination. Sometimes transfers are only valid in one direction, requiring a new fare to be paid for the return trip.
Subway: $2.00