Like many European cities, you must validate your travel ticket in a punch machine when you get on public transport, like buses. Don’t forget to do this when you've just arrived. Transit police nab tourists who haven't done so for big fines. We were still struggling to find a place for our bags on the crowded bus and hadn't yet spotted the validation machine, when they got us for €25 each.
Updates
On buses, trolleys and trams, if you feel the ticket inspectors are treating you unfairly (like not giving you time to stamp) get off and walk away, they don’t have the right to touch you. Report them to the tourist police. In the metro it’s a different matter as you should always validate your ticket before entering the subway. Apparently, BKV, the transport authority, are now giving "offenders" the chance to buy a 3-day tourist pass, at 2,500 HUF. If offered this option, take it...
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