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The vast majority of buses are going to be $1.70. The ones that aren't are noted on that WMATA site. You can feed your cash and change into a machine right as you board the bus.
You'll see people swiping a 'smartrip' card, but it costs $5, and I don't think it would be worth buying one if you're just visiting.
Buses are $1.70 in cash except for certain express buses and the airport buses. $1.50 with a SmarTrip card AND you get transfers for 2 hours, meaning you can board multiple buses of equal or lesser value at no additional cost for 2 hours after boarding a bus.
So let's say I get on a bus at 2PM. From 2PM to 4PM I can get on any number of buses for free. If I get on to an express or airplane bus then I only pay the difference between that fare and $1.50. The DC Circulator buses are $1 so if you get on one of those first and then a Metrobus you'll have to pay $.50.
I highly recommend getting a SmarTrip card. You can get them at almost any CVS Pharmacy, and at the Metro Center station. They cost $10 ($5 for the card and $5 of fare pre-loaded). You can register it online and add money that way, or add money in Metro stations and on buses. Super useful. I imagine I've saved quite a bit of money over the last few years by using it instead of cash.
You'll find lots of people from big cities that haven't been on a bus, esepcially in places like L.A. where cars rule.
I lived in the DC area, but seldom took buses, except for Montgomery County Ride-On buses for short hops betweenhome and the nearest Metro Rail station. Rail cost more but I preferred it (especially since buses stop so much and some bus stops aren't covered). However, sometimes a bus it's your only or at least best choice.
BTW, you refer to "the" bus system, and since you posted on the DC forum we assume you mean Metro bus. But there are local systems, as well, especially for speciall commuter runs connecing to rail stations, etc.
I used to get rid of all my pennies on the bus much to the chagrine of the driver, once I tried to put in $4 worth of pennies in there and I was halfway through when the driver went "Woah! Woah! Woah! Just take a seat man."
If you're new here and don't already have a SmarTrip card, get one now. Not only do you get transfers, as Hurricane mentions, but the surcharge for boarding Metrorail or Metrobus without a SmarTrip card is going to go up this summer as part of the fare increase. It's also faster than dealing with cash, and you don't have to worry about having exact change.
You can board any local bus (any bus around here or even Baltimore's buses) with a SmarTrip card, and you can even add fare to your card on board the bus (although please do that after everyone else has boarded) -- or add fare online.
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