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When you buy a transportation card in Shanghai (交通卡 or jiao tong ka), you have to make an RMB 30 "deposit". So for example, if you give a RMB 100 note when you buy your card, it will only be credited with RMB 70.
According to today's Shanghai Daily, there are 15 million transport cards in use in Shanghai. Yes, that makes RMB 450 million (although China Radio International uses different math) in the pockets of the Shanghai Public Transportation Card Corp. ... or somewhere — and the Shanghai Commission on Consumer Rights and Interest Protection (we have one of those?) argues that "consumers have the right to know" why the deposit needs to be 30 kuai (we have heard the cost of one card is RMB 7) and what exactly is being done with all the money. Our guess? Mistresses. We smell another Shanghai scandal!
This drama all started after a Beijing university student filed a lawsuit saying that city's transportation cards were too expensive — they are only 20 kuai. We'd gladly pay that ... if our card would be guaranteed to work, something that hasn't been happening too much lately.
Switching to more trivial transportation card matters, what's the funniest way you've seen someone swipe theirs? A few days ago, we saw a guy sit on the card reader — he had his card in the back pocket of his trousers!
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Maybe all the money goes into paying those useless teenagers at the metro entrance gates...i know labour is cheap in China but can't people be employed in more useful and efficient jobs??? like stopping "all the 2 wheeled vehicles who don't know the difference between red and green light" from killing someone?
When you return a card, they will give you 30RMB.
Simple.
What a weak post. Why is this an issue? Check Nick's explanation.
Also, you don't bother to mention that card users receive a discount on fares. It used to be 10%, but now I rarely look at my card so I'm not sure if they still do this or if it was a promotional thing.
In HK the deposit is HK$50, by the way.
Nick, I don't think it is that simple. There is a huge chunk of money gaining interest somewhere. And it seems there are plenty of Shanghai residents who would like to know how that money is being used. Of course, you are right that no explanation or lack of explanation will stop me from using my transportation card.
i remember thinking the same when i lived in HK - there must be economic implications of having several hundred million HK dollars leave the money supply in a short period of time, however slight
also, as Dan said, this money is held somewhere to gain interest, or secure loans, or to invest... etc. and while the deposit does get returned eventually, there will always be a stack of money available for these purposes - or for shady misuse
in the defence of the card issuers - i doubt the only cost incurred is the 7 kuai cost of the card... there must have been a lot of up-front costs... infrastructure, research, etc. and there must be running costs - hardware, staff, etc. maybe the interest off the cash mountain simply pays for that?
Umm, Shanghai doesn't give a discount on fares if you use the public transportation cards. You do, however, get the honor of paying a 30 kuai deposit.
I SWEAR I used to get discounts for using the card. Maybe it was a promotional thing, only for a limited time. I noticed because my card was showing balances in mao increments (RMB 72.7, for example). I was confused because I was not taking any fares that were not in even yuan increments, until I discovered that I was being billed only RMB 2.7 for a listed RMB 3 fare.
As I said, I haven't been paying attention recently, as I just add a couple hundred kuai each time I dip into double-digit territory, but I will be sure to check next time I ride the subway.
Can anyone else confirm this? My cred is at stake!
Dan,
Sure, it's a big chunk of money, but how is it really any different than any other profit (other than occupying a different cell in a spreadsheet)? Even in their RMB 3 fares, they are taking a profit that is as likely to be gaining interest. Do you feel compelled to ask them what they are doing with that? This figure is also quite large, and likely much larger than the profit gleaned from holding a deposit when you figure how many more people are riding each day, most of them without buying these rechargeable cards.
Also I agree with ghatzhat. Considering the poster's hearsay RMB 7 cost figure, how certain can we be that 7 kuai covers ALL overhead? Get the numbers right before you get too excited about this.
From the reputable¡ China EastDay website...
Dan - I admit it's a big chunk of money ... I am guessing that the money goes to improving the quality of the transport system ... but then that is based on the obvious assumption that this government always has the interest of the people in mind. And not the interest of 'KTV dinners' in mind.
Well my bloody transportation card broke in half. It cannot be read. I have to go to the card distribution centre in some forsaken street I've never heard of in order to get my princely 70rmb credit restored on the new card I was forced to buy. Will they refund me the 30rmb for my broken card? I am chewing my nails with anticipation.
Forced to buy? You BROKE the first one--that qualifies as your responsibility. I cannot imagine how you could break one of those cards in half with normal usage. I have used mine for a couple of years and never had a problem.
I believe there are other more important problems in this city than the rmb30 deposit for the transportation card.
To the discount nonbelievers, how do you explain your jiaos changing on the card when only using the *.00 metro?
The ten percent discount applies to using the card on the subway only. After you use it for over 70 RMB worth of fares, you will then start receiving the discount on any subsequent rides within the same calendar month. No credit/discount for taxis or buses.
FYI, the t.cards cost rmb20 now, so there's a good chance that you can get rmb10 by simply replacing the old one with the new card.