Gateless parking systems using License Plate Recognition (LPR) provide speed, convenience, and reduced operational costs. As a result, they are becoming increasingly popular among private and public operators seeking to modernize their facilities. However, relying solely on technology for enforcement can lead to the loss of a critical element: compliance. Without effective follow-up mechanisms, LPR-based systems become vulnerable to revenue leakage – the loss of expected income due to incomplete or failed payment collection.
In private settings, where legal authority is limited to civil enforcement, this risk is even more pronounced. Private operators often lack direct access to Department of Motor Vehicles (DMV) records. When LPR systems flag a vehicle without a valid payment or permit, enforcement relies on third-party skip tracing to locate and contact the vehicle owner. Industry experience shows that match rates in private operations are often below 60%, and only a portion of those contacted respond. This dynamic can result in revenue losses of 10-15%, particularly in facilities with inadequate signage or unclear follow-up procedures.
Even when a plate is captured, real-world conditions complicate enforcement. Out-of-state registrations, leased vehicles, temporary tags, and data mismatches often make follow-up impossible. Some advanced systems, particularly in international markets, report session accuracy rates of 99% or higher. However, these figures typically reflect internal tracking performance, not the ability to identify the driver or recover payment. That distinction matters. A system may perfectly log that a vehicle was present, but that doesn’t mean it can secure payment afterward.
California operators face additional complexity. Privacy laws and consumer protection regulations shape how and when parkers can be contacted. Public agencies are increasingly using indigent or hardship payment plans, striking a balance between equitable access and practical enforcement. These frameworks make it even more important to emphasize voluntary compliance rather than relying solely on post-visit collections.
Many failed transactions are not intentional. Parkers forget, make simple errors, or experience friction at the point of payment. Small mistakes, like entering an “O” instead of a zero, can prevent the system from recognizing a valid transaction. Fuzzy logic and deferred payment programs
enable operators to identify these near-misses, providing customers with a brief window to self-correct before escalation.
Clarity in design plays a major role. Poor signage, confusing kiosks, and unintuitive apps reduce compliance. Well-placed, regulation-compliant signage and simple digital workflows significantly improve outcomes before enforcement is ever required.
Still, technology has limits. LPR cannot interpret broken equipment, construction closures, valid placards, or special events. It cannot exercise discretion. This is where trained enforcement staff remain essential. Their presence improves accuracy, resolves edge cases, and acts as a deterrent.
This isn’t about reverting to older models. It’s about enhancing automation with human judgment. A hybrid approach is not just practical-it’s necessary.
Some operators are closing the gap by combining gateless entry with controlled exits or pay-before-exit systems. These models preserve customer convenience while tightening revenue control. When paired with LPR data and human oversight, operators can analyze patterns, adjust staffing levels and ultimately reduce revenue loss over time.
Layered approach
- LPR for automation
- Deferred payment for resolution
- Human enforcement for judgment
Technology is the engine. People provide the brakes and the steering. Together, they make the system smarter.
About the Author
Shakesha Holmes is a Mobility and Parking Planner with Walker Consultants in Atlanta, where she supports public and private clients in improving curbside management, enforcement, and paid parking operations. She brings over a decade of industry experience across municipal programs, hospitality, healthcare, and higher education. Shakesha holds a BA in Professional Studies from Purdue University and serves as a site reviewer for IPMI’s Accredited Parking Organization (APO) program. She is also active in the Women’s Advisory Forum, IPMI, and the National Parking Association.
