Sam Williamson, 22, saved a whole £1.90 when he used his 16-25 railcard on a journey from Broadbottom to Manchester before 10am on September 5.
The engineering graduate bought an ‘anytime’ ticket on the Northern app but was able to apply the discount which is normally only valid for off-peak fares.
Following his journey, he received a letter from Northern threatening him with legal action.
Despite initially doubling down on their prosecuting policy, Northern have now changed their position – meaning Mr Williamson is no longer facing a criminal record.
Northern’s managing director Tricia Williams said: ‘On penalty fares we absolutely have changed our position.
‘We have paused prosecutions on a number of penalty fares where we understand that the ticketing is very complex and complicated for customers.
‘Clearly if somebody is trying to travel without a ticket then that situation is not acceptable and we will continue our process for that.’
As well as in Mr Williamson’s case, Northern are now reconsidering a number of other customers who have been threatened with prosecution.
Mr Williamson, though, has urged the government to avoid similar mistakes by ‘simplifying ticketing fares.’
He said: ‘Whilst this is obviously great news for me, there are still cases going to court with Northern today on similar infractions of using a railcard before 10am.
‘I’m urging the government to simplify ticketing fares so that less people making this of mistake.
‘Most people, like myself, have no idea about the whole thing.’
Northern have made headlines over the past couple of weeks for more than prosecution, though.
The Mayor of Greater Manchester, Andy Burnham said: ‘Where has the money gone in the rail industry that we are still using 1980s technology to communicate.’