What's Least Cost Routing (LCR)?

  • In Australia, Multi-Network Debit Card (MNDC) transactions are processed through one of three networks: Mastercard, Visa or eftpos. Each network charges different rates per transaction, which are then included in your monthly merchant fees.

    By opting into Least Cost Routing2, you can choose which network (Mastercard/Visa/eftpos) these payments are sent through. This could help you save on costs for your business.

    LCR is an optional feature, giving you the opportunity to save on fees whenever customers make an eligible transaction in-person or online with a MNDC. LCR is available on selected terminals and eCommerce solutions, and selected pricing plans.

What is eftpos?

eftpos is Australia's local debit card scheme available at POS and online. Most eftpos cards are co-branded with an international card brand (e.g. Mastercard, Visa, and UnionPay).

What does this mean for our merchants?

LCR provides merchants with the ability to choose which network to route MNDC transcations through and therefore allowing merchants to choose the most cost-effective payment option for their business1.

Shop staff at work

Things you should know

  • As this information has been prepared without considering your objectives, financial situation or needs, you should, before acting on the information, consider its appropriateness to your circumstances. Please view our Merchant Agreement (PDF)Financial Services Guide (PDF) and Operator and User Guides at our merchant support hub.

    2 Least Cost Routing is also known as Merchant Choice Routing. A reference in the Merchant Agreement dated 1 April 2020 to Merchant Choice Routing is also a reference to Least Cost Routing.

    Mastercard and the Mastercard brand mark are registered trademarks of Mastercard International Incorporated. Visa is registered Trademark of Visa in the United States. Eftpos is a registered trademark of eftpos Payments Australia Ltd. Union Pay is a registered trademark of UnionPay International Co., Ltd.