Suncorp’s new ‘Wave and Save’ aims to help businesses save on merchant fees through Least Cost Routing (LCR).
The Wave and Save transaction limit will be set to a default position based on the merchants pricing plan, where transaction fees are the same via both the eftpos and credit card network.
“Scheme debit card contactless transactions valued over the transaction limit will be routed through the eftpos network and charged at a flat rate, regardless of the transaction amount. Any scheme debit card contactless transaction valued equal to or under the transaction limit, will continue to be processed via the credit card network and the credit card transaction fee charged,” said Karen Auer, Executive Manager Business Deposit Payments.
LCR helps merchants reduce their fees by routing debit card contactless transactions through the lowest cost network. Once the terminal is set up, it will manage the contactless transactions allowing merchants to focus on their business.
A recent study by global payments consultancy, CMSPI, found that just 18 per cent of current transactions are routable and less than eight per cent of these are actually being routed, resulting in $67 million in avoidable merchant fees paid for the month of August alone.
“In the current environment low-cost payment solutions are really important for our customers. LCR is an easy way for merchants to ensure they are minimising their eftpos fees and getting the most out of their Suncorp eftpos facility,” said Auer.
Due to the growing use of ‘tap-and-go’ payments, consumers are no longer using the keypad and choosing the lower-cost eftpos network with most payments defaulting to the international network, meaning higher costs for the merchant.
Suncorp’s Wave and Save can help merchants take steps to reduce these fees.
Things you need to know
Merchant facilities are issued by Suncorp-Metway Ltd ABN 66 010 831 722 AFSL 229882 (“Suncorp”). Approved applicants only. Terms and conditions, fees and charges apply and are available on request. Suncorp cannot guarantee savings/lower merchant fees for all merchants that enable Least Cost Routing on their terminals as this is dependent on the merchant’s industry, card types used to process payments, the value and volume of transactions and the merchant’s pricing plan.
The Wave & Save Limit will depend on the merchants pricing plan and is set to a default position where the transaction fees are the same to process via both the eftpos® and Credit Card network.
Partnered article by C&I and Suncorp.