Many Australian debit cards can process a payment through more than one network. Least-cost routing, sometimes called merchant-choice routing, allows an eligible debit transaction to be sent through the available network that costs the merchant less.
Why the route matters
A customer may tap the same card and draw funds from the same account regardless of the network used. The merchant’s acceptance cost, however, can differ. The Reserve Bank of Australia describes least-cost routing as a way to promote competition between debit networks and reduce payment costs.
How to check
Ask your payment provider whether least-cost routing is available for card-present, online and mobile-wallet transactions. Then ask whether it is enabled on your facility. Availability and activation are not the same thing.
Review merchant statements before and after activation. Look at total fees and the routing or card-type breakdown rather than assuming every debit transaction will become cheaper. Pricing arrangements differ, and a provider may apply its own commercial rules.
A practical checklist
- Confirm the feature is supported on every relevant channel.
- Ask whether activation is automatic or opt-in.
- Request the routing logic and any thresholds in writing.
- Measure the effective acceptance rate over comparable periods.
- Recheck after changing terminals, gateways or providers.
For authoritative background and current availability reporting, consult the Reserve Bank of Australia’s least-cost routing resource.