LCR

News about Least-cost routing and its adoption in the Australian payments space

With no consensus on card fees and surcharging, will the public interest prevail?

If the Reserve Bank wants consensus on its proposal for merchant fees and surcharging, it’s a lost cause. The best the central bank can hope for is a decision in the public interest, leveraging strong sentiment on issues such as scheme fees, least-cost routing and the burden on small business.

Fintech

AP+ sets early 2026 launch date for LCR on Click to Pay

eftpos owner AP+ is chasing Mastercard’s aggressive Click to Pay rollout in the land grab to embed tokens and least-cost routing for online card payments.

LCR

RBA asked to explain soaring merchant costs as it finalises reforms

Small business groups want the Reserve Bank to shed light on why the average fee to process an eftpos transaction is rising as wholesale costs decline and more banks make least cost routing available to merchants. They say it’s pointing to something profoundly dysfunctional in the Australian payments system.

Fintech

How reliable are the RBA’s official numbers on debit routing?

Banks and other acquirers enjoyed lower wholesale costs for processing eftpos transactions last year, but the average service fees paid by merchants still soared by 34 per cent. The blowout in merchant costs comes as the RBA released fresh data that least cost routing had been “enabled” for 80 per cent of Australian merchants at the end of June.

Merchant Service Fees

Routing now available for 50 per cent of debit cards on mobile

Mobile least-cost routing (LCR) is now available to 50 per cent of cardholders, according Australian Payments Plus (AP+).

LCR

Adyen halves merchant costs with AI-enabled dynamic routing

Adyen has achieved a breakthrough in lowering the payments costs borne by merchants in Australia and the US, using an AI-driven dynamic routing platform. The service has delivered cost savings running into the millions for big online merchants such as Adobe and Microsoft.

Fintech

Mastercard Click to Pay: security push, or LCR firewall?

Australia’s two biggest issuers are bulk‐enrolling millions of Mastercard customers into tokenised, one‐click online checkout. Banks say it’s about fraud; critics say it sidelines eftpos and Least‐Cost Routing

LCR

Specialty is key in new era of Aussie payments consulting

With increasing complexity around digital payments, a new breed of payments consultant is emerging in Australia focusing on niche specialisations to help businesses meet new challenges.

Fintech

Locally-focused IPSI certificated “Australian Made”

A quiet achiever in Australian payments industry, IPSI, has certified its products and services to carry the “Australian Made” logo, sending a strong message to the market about its local focus.

LCR

Least Cost Routing enablement still has a long way to go

The RBA latest 6-monthly data on Least Cost Routing (LCR) highlights not only how far there is to go to full enablement, but the reasons why Australia’s acquirers aren't there yet.

Merchant Service Fees

Impact of Mastercard global outage lessened by LCR at Aussie merchants

Least Cost Routing (LCR) came to the rescue on Sunday, as Mastercard users were unable to make online, in-person or ATM transactions on the US network.

LCR

Least cost routing finally enabled for some Google Wallet transactions

After more than five years of lobbying from Australian small business to reduce the cost of mobile transactions, eftpos functionality and least cost routing (LCR) is finally available for some Google Wallet mobile debit transactions in Australia.

LCR

IPF wants action on merchant fees after record increases

The cost of card fees levied on businesses is at record levels, forcing higher surcharges for consumers in a cost of living crisis, according to the Independent Payments Forum (IPF).

Fintech

Interchange regulation alone won’t be enough to tackle card fees

Interchange fees have long been the focal point for regulators seeking to control merchant payment costs. However, mounting evidence suggests that regulating these fees alone has been insufficient to curb overall payment expenses that are now estimated at $6.4 billion each year in Australia.

Regulation

Westpac backs scheme fee cap and dissecting blended pricing

Westpac has taken aim at the “complex” fees charged by card schemes like Visa and Mastercard, as well as controversial “blended” pricing plans imposed on many small businesses, in a comprehensive response to the Reserve Bank of Australia’s inquiry into merchant fees and surcharging.

Regulation

High card fees for small business under attack in RBA review

The urgent need to reduce card fees for Australian small business was a strong theme in early submissions to the Reserve Bank of Australia’s inquiry into card fees and surcharging this week.

Regulation

It’s time! Mandate Least Cost Routing ... properly, Ombudsman

The Australian Small Business and Family Business Ombudsman, Bruce Billson, has called for Least Cost Routing (LCR) of debit card payments to be mandated by the Reserve Bank of Australia, comparing the current system to expensive and unnecessary toll roads.

LCR

Is the RBA about to blend the battle for lower merchant fees with its war on inflation?

“Given the RBA’s present priority on curbing retail inflation, an emerging question is whether Governor Michele Bullock will be looking to recast the battle over merchant fees as a macroeconomic concern.”

LCR