Least-cost routing: check what your provider enables

Least-cost routing can send an eligible dual-network debit payment through the cheaper available network. Whether it helps your bill depends on your provider, transaction type and pricing plan. Ask for confirmation of what is enabled on your account, then compare similar transactions before and after any change.

Use this check if a provider says routing is available but you can't tell whether your shop benefits. A feature offered elsewhere in the product range may not be switched on for your account.

Understand the route before looking for a setting

The RBA defines least-cost routing around dual-network debit cards, commonly offering eftpos and an international debit network. It doesn't turn a credit-card transaction into a debit payment or change the customer's underlying deposit account. Ask separately about physical cards, mobile wallets and online payments because implementation differs.

1. Customer presents an eligible debit cardConfirm that the transaction supports a choice of networks.
2. Provider applies the routing configurationAsk whether the choice is automatic, threshold-based or otherwise determined.
3. Payment travels through the selected networkThe same customer account funds the purchase. Credit-card transactions are outside this diagram.
4. Your plan determines the chargeA lower underlying network cost does not necessarily change a flat merchant rate.

Original ASBG process diagram. Read in order; no animation or colour interpretation is needed.

Get an account-specific answer

Send your merchant identifier, terminal models and plan name through the provider's normal support channel. Ask it to list supported channels, excluded payment types, current configuration and the date a requested change will take effect. Keep the support response with your fee agreement.

Then ask the question that matters to your budget: if a transaction uses a cheaper route, how does that appear on my bill? It could change an itemised charge, affect only certain categories, or leave an agreed flat rate unchanged. Request a worked transaction on your plan rather than accepting a general savings claim.

Compare a consistent set of transactions

Keep a baseline period before changing anything. For the comparison period, collect the same categories, values, counts and fee definitions. Separate a new rental charge or broader pricing renegotiation from routing itself.

Measure	Before	After
Eligible debit value	$20,000	$20,000
Eligible debit count	500	500
Charges attributed to that basket	$180	$150
Basket cost as a percentage	0.90%	0.75%
Other fixed charges	$50	$50

Fictional example in AUD. Replace these inputs with your own records.

This invented example shows a $30 reduction on matching debit volume. It doesn't establish a general saving or prove routing caused the difference. If customer mix, fees or reporting definitions changed, ask the provider to explain those effects before drawing a conclusion.

Check the rollout on every device

A setting on one terminal doesn't prove a second location or online gateway uses it. Record the confirmation for each channel and ask whether replacement equipment inherits the setting. Add the check to your terminal and location register.

Use the merchant-statement worksheet to separate the fees and the pricing comparison if the proposed change also involves a new plan. More checkout tasks sit in the payments and POS hub.

Key takeaways

• Confirm eligibility and enablement on your own account and channels.
• Ask how the route affects the price you actually pay.
• Compare consistent transaction baskets and record other changes.

Where to get help

• RBA: least-cost routing