Save on contactless debit card transaction costs

Running a business? Ringing up lots of payments? Least Cost Routing (LCR) could lower the cost of accepting debit cards, helping your business save money.

Lower cost of acceptance adds up to business savings.
Transaction security isn’t compromised.
Tried and tested with over 90,000 Aussie merchants.

What is Least Cost Routing?

Even if transaction costs are small, they can really add up. We don’t want you to pay more than you have to, which is why we offer Least Cost Routing (LCR). This directs all your contactless debit card payments to the most cost effective channel - and it means you could reduce your contactless debit transaction costs.

How it works

Around 70% of Australian transactions are made with debit cards¹ - and more than 35 million of these debit cards are contactless-enabled ‘dual network’ cards². Dual network means they can be used to make transactions through eftpos, or an international payment scheme. When your business is LCR-enabled and a customer taps a dual network card, the transaction will automatically be routed through the most cost-effective network.


Wondering what you could save?

Here’s some examples of what businesses are saving with Least Cost Routing enabled.

Proven solution

Average basket size = $44
Savings = $26,568 p.a.*

Reduced costs

Average sale = $36
Savings = $3,188 p.a.*

¹ Kateryna Occhiutto, ‘The Cost of Card Payments for Merchants’ (Bulletin ISSN 1837–7211 (Online), Reserve Bank of Australia, March 2020) [20].
² Source: eftpos statistics correct as at December 2020.
* Source: Based on RBA Payment Statistics provided in the RBA Bulletin, June 2021 and eftpos analysis.

How do I get started?

Questions to ask your bank to get the ball rolling.

Questions to ask
  • I’d like to find out about Least Cost Routing (or Merchant Choice Routing) for my business. Who’s the best person to talk to?
  • Do you have a guide to help me understand my merchant statement?
  • Can you explain how my fees are currently structured, and what I’m paying?
  • If my fees are bundled, can you break them out so I can see debit and credit separately?
  • If I choose to route my contactless debit card transactions via eftpos, will I save on fees?
  • Can we go through a realistic scenario to test this out?
  • If I want to implement Least Cost Routing, will a pricing review need to happen – and is my current structure l likely to change?
  • Are my terminals eligible for Least Cost Routing?
  • If not, what will be involved in an upgrade?
  • If I have multiple terminals, can I implement Least Cost Routing on just one of them?
  • Or does it have to be done across the board? What else is involved in implementing Least Cost Routing and how long does it take?
Get in touch
Do you have a query about Least Cost Routing? We’re here to help – just drop us a line.


What is Least Cost Routing?
Least Cost Routing (LCR), also known as Merchant Choice Routing, allows retailers and merchants to channel contactless transactions from dual network debit cards via the lowest cost payment network (in most cases eftpos). You can find more info here.
How do I put Least Cost Routing in place?
Chat to your bank or card payment services provider, and ask them to give you a proposal that incorporates Least Cost Routing into your current arrangement. Read our guide for what questions to ask your bank.
How much will I save with Least Cost Routing?
Potential savings will vary depending on your situation, and the terms you’ve agreed on with your acquirer (the bank or provider that enables your card payments).
Are chargebacks available?
Yes. For eftpos transactions, chargeback rights cover the full range of losses required by the ePayments Code.
Can I expect technical hitches with Least Cost Routing?
Thousands of merchants across Australia already have Least Cost Routing  successfully up and running, with no discernible difference in how things operate for merchants or customers (apart from the benefits).
What if most of my business transactions are credit, not debit?
Currently Least Cost Routing only applies to dual network debit cards in Australia – so the savings don’t apply to credit card transactions.
Does the Reserve Bank support Least Cost Routing?
The Reserve Bank of Australia has been pushing for Least Cost Routing to be rolled out for a number of years. This is mainly because it supports Australian businesses by boosting competition in the payments space, helping to drive down costs. You can learn more about this here.
Will customers lose any insurance available by using their card (e.g. purchase protection, extended warranty) if their payments are processed using Least Cost Routing?
No, they won’t. While insurances on debit cards are very rare, currently available information suggests they are offered at an account level rather than a network level. That means consumers should still be eligible for insurance benefits offered on dual network cards.

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