With many Australian businesses processing most of their transactions via their EFTPOS terminal, it is no surprise that business owners are always looking for ways to reduce their merchant fees & charges.

Merchant Choice Routing (MCR) allows merchants to choose to send contactless ‘tap-and-go’ transactions from Multi-Network debit cards through the Australian eftpos network instead of the Visa or MasterCard® network. Multi-Network debit cards are dual branded debit cards with either Visa/eftpos or Mastercard®/eftpos logos on the front and rear of the card.

Potential benefit to your business 

MCR may enable merchants to save on transaction processing costs, depending on the card mix, transaction amount and pricing plan.

What are my options? 

With this feature, you have 3 options:

Option 1: Continue to use your current routing system – if you like things the way they are, you can keep processing contactless debit transactions through the Visa and Mastercard® networks.

Option 2: Enable MCR – this option will allow you to process all your Multi-Network debit contactless card transactions through eftpos.

Option 3: Enable MCR with a limit – this gives you the option to process lower value transactions through Visa or Mastercard®, and higher value transactions through eftpos. For example, if you select a MCR limit of $25, then transactions of $25 or less will go through the Visa/Mastercard® network, and transactions over $25 will go through eftpos.

How can I potentially save with Merchant Choice Routing? 

MCR could reduce your transaction processing costs, but any benefit will depend on variables such as the ticket size and the types of cards that are accepted for payment. The following examples give you an idea of how MCR impacts different businesses based on their transaction mix.

Jane’s Coffee Shop 

Jane owns a coffee shop with most transactions under $10 (a low value transaction business). The Merchant Service Fee to process a Visa Debit card is 1.5%, and the eftpos Debit service fee is $0.10.

When MCR is not enabled, a contactless purchase on a Visa debit card would cost Jane $0.15 (1.5% of $10). If Jane enabled MCR, then the same transaction would cost $0.10 via eftpos. This is because the transaction is processed through eftpos and it attracts a fixed debit service fee.

Based on the above example, MCR does not appear to be the right choice for Jane.

Charlie’s Clothing 

Charlie owns a retail store with most transactions over $50 (a high value transaction business). The Merchant Service Fee to process a Visa Debit card is 1%, and the eftpos Debit service fee is $0.10.

When MCR is not enabled, a contactless purchase on a Visa debit card would cost Charlie $0.50 (1% of $50). If Charlie enabled MCR, then the same transaction would cost $0.10 via eftpos. This is because the transaction is processed through eftpos and it attracts a fixed debit service fee. Based on the above, MCR appears to be beneficial for Charlie.

To learn more, visit the NAB Merchant Choice Routing website page.

To speak to a NAB Transactional Banking Specialist about the benefits of Merchant Choice Routing, please complete the below Expression of Interest:

Important information 

This information has been prepared without taking into account your financial situation, objectives or needs. You should read and consider the Merchant Agreement including relevant Merchant Choice Routing terms and conditions, which govern the use and operation of your merchant facility before making a decision. Mastercard® and the Mastercard Brand Mark are registered trademarks of Mastercard International Incorporated.