Merchant Choice Routing
To find out more about Merchant Choice Routing (MCR), or to activate it on your terminals right now, please call us 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 on a monthly pricing plan, or paying a flat percentage rate for eftpos, Mastercard®, Visa® and UnionPay transactions, you can choose to activate MCR on your EFTPOS terminals and/or eCommerce Merchant Facilities.
MCR sends eligible contactless (tap and go) EFTPOS 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 contactless EFTPOS or online debit card transaction.
Note: Merchant Choice Routing is available for each eligible tap and go and online debit card transactions under $1,000. Tap and Go debit card transactions over $1,000 will automatically route through the Visa or Mastercard network.
If you are approved for a merchant facility on and from 30 September 2023, Merchant Choice Routing will be available for each eligible tap and go and online debit card transactions under $100,000. Transactions exceeding this amount will automatically route through the Visa or Mastercard network.
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. The chip on the card gives it the capability to be routed via either scheme’s network.
How can Merchant Choice Routing help lower my operating costs?
MCR gives you a choice. Directing Multi-Network Debit Cards tap and go 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 percentage rate for all transactions.
| Mastercard and Visa routing |
eftpos routing |
|---|---|
| When contactless EFTPOS and/or online purchases using a Multi-Network Debit Card 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 contact your Payment Gateway provider or 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.
How do I activate MCR for online debit card transactions?
If you want to discuss Westpac pricing for MCR online Multi Network Debit Card (MNDC) debit card payments, call our Merchant Helpdesk on 1800 029 749 or speak to your Relationship Manager.
To activate or deactivate MCR for online Multi Network Debit Card (MNDC) payments, contact your Payment Gateway provider.
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
Merchant Choice Routing is not available on our monthly pricing plans or where we charge you a flat percentage rate for transactions. 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.
1. Mastercard/Visa Merchant Service Fee means when your customers use a Mastercard or Visa credit card to make a payment we charge a Merchant Service Fee, based on volume and rate per card type. Mastercard and Visa Merchant Service Fees are typically charged as a % of either the net or gross dollar value processed.
2. "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.