What actually happens is if you contest it you'll probably be in a room with forty other people contesting their tickets, then some DA assistants will come in and start calling names and you go up and plead your case. then if you can come to an arrangement alls well and good. If you don't then you will go to a real court(unlikely).
They give the "It will cost you speech" because if they didn't everyone would contest their tickets. If you showed up in spite of the warnings is showing them that you seriously think you are in the right and they take that into consideration. They will drop it or give you some kind of deal where it won't penalize you. Just make sure you have your picture with you.
This is from my experience anyway. Might not be the same as where you live but I doubt it.
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