it protects us from the 'your only doing it cos im black, white, yellow, foreign, bloke, women' rant.
I got told once "You're only charging me because we bet you at rugby in Cardiff on Saturday"
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Well, yes I agree, but I didn't mean that.
I meant, assuming that the passenger is caught without a railcard, then the resulting 'penalty' is a lottery, with someone holding a YP discounted SOR who is able & willing to travel again at a later date, on a route with reasonable SORs, doesn't do too badly, compared to the person with the CDR under £10 that has no value who then has to pay around four times the price because the TOC who prices that flow charges a huge premium for SORs, and can get no value out of their original ticket, and pays nearly £10 more than someone who didn't have a ticket at all.
The price of the ticket depends on the journey being done. If it's a longer journey, then the ticket will cost more. The passenger has the option of paying a ticket to the next stop, alighting, and then purchasing a new cheaper ticket to their eventual destination. I've done this to people who have said "I'm not paying that, I'd rather get off at the next stop" ("Fine, then you need a ticket from X to Y")
On your main point, in theory the old ticket is ripped up and a new full open issued. That's what the book says, (and certain managers expect). However, the same managers don't want to deal with the complaints that a zero tolerance approach engenders.
Fair enough. I once described my personal approach on another forum as depending on "my mood and your attitude", which flippant response succeeded in getting me a lot of abuse. However, I do stand by it.
To enlarge on it, there are a lot of factors involved, which basically come down to a cost/benefit analysis. How much money am I going to get and for how much hassle. As an example, I will probably get a £20 excess / £35 Superoff-peak without too much trouble where I won't get a £100 full open without a major investment of time and effort.
I'm going to attract a lot of flak if I delay a train waiting for BTP for non-payment of a fare, both from my manager and the passengers that miss their connections further up the route - but if it's the last stop coming up, with BTP already there, then I can have a reception committee, and nobody gets delayed. (unless I have a quick turn-around and don't have time to chat to BTP - but I might have a boring 3 hour stopover, and need something to pass the time...

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If it's 17:00, I've potentially got 400 other tickets to check on that train, some of whom might have no ticket at all. But if it's 13:30 there are only 60 people on the train, I can spend more time either arguing, or listening to the story to gauge how genuine it is.
If I have seen them before, I might even remember their railcard - or lack thereof!
The passenger might put their hands up, or might go into the full "I'll discuss it with someone senior at the station, I don't talk to the monkey, I talk to the organ-grinder". (The idiot who said that to me talked himself from a £14 excess which I originally offered him to a £104 PF from the RPI's who met the train, as he had requested!

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A lot of posters go on about us using our discretion - well, that's just what we do. Which is what makes it into a lottery.
The best way to avoid it? Buy the right ticket / bring the correct railcard. As I said, the vast majority of people manage to do so.
