Merchant Choice Routing
Merchant Choice Routing (MCR) may reduce the cost of accepting eligible tap and go and online Multi Network (MNDC) Debit Card payments.
To find out more about Merchant Choice Routing (MCR), or to activate it on your terminals and/or eCommerce merchant facilities, please call the Merchant Helpdesk on 1800 029 749 or speak to your Relationship Manager.
What is Merchant Choice Routing (also known as Least Cost Routing)?
For merchant customers who are not paying a Flat Transaction Rate for eftpos, Mastercard®, and Visa® transactions, you can choose to activate MCR on your EFTPOS terminals and/or eCommerce Merchant Facilities.
MCR directs eligible contactless Electronic Funds Transfer and online Multi Network Debit Card (MNDC) payments through the eftpos network – rather than through the Visa or Mastercard networks. This could reduce the amount you pay as a merchant for each eligible in person or eCommerce debit card transaction.
Is MCR enabled for transactions that are capped at a certain amount?
Yes. The MCR feature includes a transaction cap known as the ‘End Amount’. This cap determines whether an eligible MNDC transaction is routed via eftpos or the Visa/Mastercard network. It was introduced to align with daily card limits set by either eftpos or your card issuer.
In-store contactless payments:
- If MCR was enabled on your facility before 30 September 2023, the End Amount is capped at $1,000. This means that eligible MNDC transactions under $1,000 will be routed to the eftpos network and eligible MNDC transactions at or over $1,000 will be routed through the Visa or Mastercard networks.
- If enabled on or after 30 September 2023, the End Amount increases to $100,000. This means that eligible MNDC transactions under $100,000 will be routed to the eftpos network and eligible MNDC transactions at or over $100,000 will be routed through the Visa or Mastercard networks.
Online payments:
- The End Amount varies depending on your product and your Payment Gateway provider’s requirements.
- For OnlinePay, no End Amount cap applies as MCR is a default feature for merchants.
What debit cards does MCR apply to?
MCR applies to Multi-Network Debit Cards (MNDC), which have both Visa and eftpos or Mastercard and eftpos logos.
How can Merchant Choice Routing help lower my operating costs?
MCR gives you a choice. Routing eligible MNDC contactless and online debit card transactions through the eftpos network can attract lower merchant service fees - thereby reducing your overall costs. This will depend on how your fees are currently structured and priced for different types of transactions. For example, MCR won't benefit your costs if you are paying a flat transaction percentage rate for all transactions.
| Mastercard and Visa routing |
eftpos routing |
|---|---|
| When contactless EFTPOS and/or online transactions using a MNDC are routed through the Visa or Mastercard networks, Visa or Mastercard Merchant Service Fees – and any other fees specific to Visa or Mastercard acceptance – will automatically apply. | When contactless eftpos and/or online purchases using a Multi-Network Debit Card are routed through the Australian eftpos network, the eftpos Merchant Service Fees will automatically apply instead of Visa or Mastercard Merchant Service Fees. |
I have multiple EFTPOS terminals. Can you activate MCR on just one or a specific EFTPOS terminal?
No. Merchant Choice Routing is set at a merchant (MID) level, so MCR activation will apply to all the EFTPOS terminals (with MCR capability) linked to the MID.
How do I activate MCR for my EFTPOS terminals?
If you want to activate or deactivate MCR for in person contactless payments call our Merchant Helpdesk on 1800 029 749.
If you want to discuss our pricing for MNDC payments, call our Merchant Helpdesk on 1800 029 749 or speak to your Relationship Manager.
If you want to discuss Westpac pricing for MCR online Multi Network Debit Card (MNDC) payments, call our Merchant Helpdesk on 1800 029 749 or speak to your Relationship Manager.
How do I activate MCR for online multi-network debit card transactions?
MCR is automatically enabled as a feature of OnlinePay. If you have a question, reach out to the Merchant Helpdesk on 1800 029 749 or your Relationship Manager.
For other payment gateways, contact your provider to activate or deactivate your MCR.
Is there anything else I need to do?
Merchants who have activated MCR and are processing online Multi Network Debit Card (MNDC) transactions will need to provide reasonable notification to new and existing cardholders advising them that their transactions may be routed through the eftpos network.
For example, you may display the notification as:
- online text on your website;
- add a statement to your customer terms and conditions;
- add an explanation to your website’s ‘frequently asked questions’ section.
For further information please refer to the following link:
Things you should know
1. Merchant Choice Routing is a default product feature for Flat Transaction Rate pricing and will be applied to all OnlinePay Flat Transaction Rate Merchant facilities.
2. If you would like to enable this feature, a pricing review will be initiated. We cannot guarantee merchant fee cost savings after Merchant Choice Routing activation or deactivation. It will depend primarily on your pricing arrangements and the dollar value of each transaction. In some cases, eftpos transaction fees will be cheaper for merchants; in others, Visa or Mastercard will be cheaper.
3. Mastercard/Visa Merchant Service Fee means when your customers use a Mastercard or Visa card to make a payment we charge a Merchant Service Fee as a % of the transaction value and/or a flat fee per transaction - calculated on a gross, net, or volume basis.
4. "eftpos transaction fees" means eftpos Purchase and eftpos Cash Out Merchant Service Fee. "eftpos Purchase Mechant Service Fee" means a fee charged as a % of the transaction value and/or a flat fee per transaction - calculated on a gross, net, or volume basis. "eftpos Cash out Merchant Service Fee" means a fee charged as a % of the transaction value and/or a flat fee per transaction - calculated on a gross, net, or volume basis.
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