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How to enable least-cost routing

In short

Turning on least-cost routing can lower what you pay to accept debit cards by sending dual-network debit down the cheaper network. Around 85% of Australian debit is dual-network, and the RBA says least-cost routing can cut debit acceptance cost by about 20%. This guide walks through confirming you’re eligible, asking your provider to switch it on, and checking it actually took effect.

Last updated: 30 June 2026

Least-cost routing, sometimes called merchant-choice routing, sends dual-network debit transactions to whichever network is cheaper for you. This is general information to help you check your eligibility and get it enabled.

Step by step

  1. Confirm how much of your turnover is debitCheck your statement to see what share of your card turnover comes from debit cards. The bigger your debit volume, the more least-cost routing can do for you. If debit is a large slice of your sales, this is well worth pursuing.
  2. Check your terminal or plan is dual-network capableLeast-cost routing only works on dual-network debit cards, which carry both eftpos and a scheme network. Around 85% of Australian debit cards are dual-network, so most of your debit volume is likely eligible. Confirm your terminal and pricing plan support routing these transactions.
  3. Ask your provider to enable LCRContact your provider and request that least-cost routing, or merchant-choice routing, be switched on for your account. It isn’t always enabled by default, so you may need to ask explicitly. Get confirmation in writing once it’s active.
  4. Confirm it covers in-person and onlineAsk whether the routing applies to both in-person and online (card-not-present) transactions. Coverage can differ between channels, and online debit is a common gap. Make sure every channel where you take debit is included.
  5. Test with a dual-network debit cardRun a small transaction with a known dual-network debit card after it’s switched on. This helps confirm the routing behaves as expected before you rely on it. Keep a note of the test so you can match it against your statement later.
  6. Monitor your statement for the changeCompare your debit costs on the next statement against an earlier one to see the effect. The RBA says least-cost routing can cut debit acceptance cost by around 20%, though your actual result depends on your card mix and pricing. If you see no change, raise it with your provider.
  7. Set realistic expectations on savingsLeast-cost routing reduces cost on eligible dual-network debit, but no specific saving can be guaranteed for any individual business. Single-network cards and your provider’s pricing structure both affect the outcome. Treat the ~20% figure as an indicative average, not a promise.

Source: RBA Review of Merchant Card Payment Costs and Surcharging — Conclusions Paper (March 2026).

This guide is general information only and is not legal or financial advice. Rates are indicative; the RBA sets the final rules and timing — confirm current details at rba.gov.au.
Common questions
Questions, answered
What is least-cost routing?
It’s a feature that routes dual-network debit transactions to whichever network is cheaper for the merchant. Around 85% of Australian debit cards are dual-network, and the RBA says it can cut debit acceptance cost by about 20%.
How do I turn on least-cost routing?
Ask your provider to enable least-cost routing or merchant-choice routing on your account, confirm it covers both in-person and online, then test with a dual-network debit card and check your next statement.
Does least-cost routing guarantee savings?
No. It lowers cost on eligible dual-network debit, but the actual saving depends on your card mix and your provider’s pricing, so no specific amount can be guaranteed.
Keep reading
How to read your merchant statement and find hidden fees →How to calculate your cost of acceptance →How to switch merchant providers in Australia →What is least-cost routing and should I turn it on? →Will my merchant fees go down in 2026? →All guides →
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