Which type of collection system is used by transit merchants for fare collection?

The Automatic Fare Collection System (AFC) is the correct choice for the type of collection system used by transit merchants for fare collection. AFC systems are specifically designed to automate the fare collection process in public transportation systems, which can include buses, trains, and other modes of transit.

These systems typically utilize various technologies such as smart cards, mobile payments, magnetic stripe cards, or even contactless payment methods, allowing for efficient operation. By streamlining fare collection, AFC systems help to reduce wait times for passengers, improve the accuracy of fare collection, and enhance overall operational efficiency for transit agencies.

In contrast, while Electronic Ticketing Systems may also facilitate ticket purchases, they do not necessarily encompass the full scope of automated fare collection that AFC systems provide. Integrated Payment Systems and Transit Payment Networks typically refer to broader frameworks that may include multiple payment methods or various services beyond just fare collection, making them less specialized in this context. Therefore, AFC stands out as the most appropriate answer for the specific function of fare collection in transit environments.