The rail passenger watchdog, Transport Focus, has urged train companies to adopt a "yellow card" approach for travelers without the correct ticket, instead of rushing to fines or prosecution. They argue that a new system is necessary to avoid punishing passengers who make honest mistakes, in response to rising concerns over measures to combat fare evasion.

Instances have surfaced where passengers faced penalties or prosecution for minor errors, such as being fined over £400 for mistakenly using railcards incorrectly, resulting in savings of less than £2.

Transport Focus recommends a nationwide yellow card system, where first-time offenders would be notified of their mistake, have their details recorded, and face fines only for repeat offenses.

In order for inspectors to quickly verify whether passengers are eligible for discounts in the event that they have forgotten to carry a card or are unable to access them online when needed, Transport Focus advocated for the creation of a central digital database of railcards issued.

According to the report, passengers may receive reminders when their railcards are about to expire. In a broader sense, the watchdog recommended that the industry streamline its ticketing and tariff structures.

The complexity of rail tariffs, which make it difficult for certain passengers to purchase the right ticket, has long been a source of worry for Transport Focus, according to Natasha Grice, director for rail.

“We understand and support the principle that all users of rail should be paying for their ticket, but we want to make sure that passengers who make an innocent mistake aren’t punished unfairly,” Grice said.

The call came in response to a government-mandated inquiry into how train operators were tackling fare evasion, after ministers expressed concern about innocent mistakes being unfairly punished.

Fare evasion is estimated to cost the industry £240m a year.

Grice added: “There are some things that the industry could do now to make things better and our research tells us that if the railway is to build trust and confidence, an improved approach to revenue protection is needed. Recouping this money could help boost investment in services, making things better for passengers.”

The government has also committed to simplify the ticketing system as part of the wider Great British Railways reforms.

The Office of Rail and Road launched a review last month into revenue protection practices, including penalty fares and prosecutions, and has asked any passengers penalised for boarding trains without the correct ticket to share their experience.

Notorious reported cases have included a Northern rail passenger who was prosecuted and fined £462 for travelling before 10am on an Anytime ticket mistakenly bought with her railcard, saving just £1.60 on the fare. The operator has since said it was dropping similar prosecutions.

More than 70,000 prosecutions for fare dodging were quashed under a ruling last year. Northern and three other rail operators had pressed cases in magistrates courts behind closed doors.