How does Least Cost Routing work?

Based on a Merchant’s pricing plan, a Wave & Save Transaction limit** is set to a default position where the transaction amount costs the same to process via both the EFTPOS and Credit Card network.  Scheme debit card contactless transactions valued over the limit will route down the EFTPOS network and you will be charged the debit card fee.

Some debit card issuers may set a maximum daily card limit on EFTPOS debit card transactions, usually $1000**, meaning once this limit is reached, transactions will be processed via the credit card network.

Any scheme debit card contactless transactions valued equal to or under the transaction limit will continue to be processed via the credit card network and be charged the credit card transaction fee.  Setting the right transaction limit helps to take steps to ensure you are charged the lower transaction fee for scheme debit card contactless transactions