Least-cost routing, without the jargon

30 September 2026 · 2 minute read

Most debit cards in Australia carry two networks — eftpos, plus Visa or Mastercard. When a customer taps, someone chooses which network the payment travels on. Least-cost routing (LCR) means that choice is made in your favour.

Why it matters

The Reserve Bank's data puts eftpos among the cheapest ways a payment can travel. Routed the other way, the same tap can cost more. Multiply by every tap, every day, and routing becomes real money.

The one question: "Is least-cost routing switched on for my account?" Some providers enable it by default, some on request, and on some flat-rate plans it's already priced in. The answer tells you a lot about whose side your pricing is on.

The honest caveat

On a flat-rate plan, routing happens behind the scenes and the advertised rate is what you pay — the benefit is baked in or it isn't. On unbundled plans, LCR shows up directly. Either way it costs nothing to ask, and the Reserve Bank has been pushing providers to make it standard.

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FeeFox provides factual comparisons of your card fees against published market rates. What you do next is your decision. We are not financial advisers and this is not financial advice.