Merchant Choice Routing

Merchant Choice Routing allows merchants to choose to send contactless ‘tap-and-go’ transactions from Multi-Network debit cards through the Australian eftpos network instead of the current 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 the business

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

With this feature, you’ve now got three 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 Merchant Choice Routing – this option will allow you to process all your multi-network debit contactless card transactions through eftpos.

Option 3: Enable Merchant Choice Routing 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 Merchant Choice Routing limit of $25, then transactions of $25 or less will go through the Visa/Mastercard^® network, and transactions over $25 will go through eftpos.

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 2%, and the eftpos Debit service fee is $0.25.

When MCR is not enabled, a contactless purchase on a Visa debit card would cost Jane $0.20 (2% of $10). If Jane enabled MCR, then the same transaction would cost $0.25 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 2%, and the eftpos Debit service fee is $0.25.

When MCR is not enabled, a contactless purchase on a Visa debit card would cost Charlie $1.00 (2% of $50). If Charlie enabled MCR, then the same transaction would cost $0.25 via eftpos. This is because the transaction is processed through eftpos and it attracts a fixed debit service. Based on the above, MCR appears to be beneficial for Charlie.

You can understand your transaction fees and charges by referring to your statement. A guide to your NAB merchant statement (PDF, 1.49MB) can help you understand your statement better.

All contactless ‘tap-and-go’ purchase and refund transactions from Multi-Network debit cards are supported.

It doesn’t apply to transactions where:

A cardholder chooses to manually insert or swipe their Multi-Network debit card and then selects their account prior to entering their PIN.
Credit card transactions including Multi-Network credit cards that have EFTPOS as a secondary function.
Contactless device payments e.g. Apple Pay, Google Pay, FitBit Pay, etc.

MCR and the cardholder experience

Merchant Choice Routing won’t affect the payment experience or the cost to the cardholder. For NAB cardholders, regardless of whether their payment is routed through the eftpos or Visa/Mastercard^® network, they’ll still be eligible for any rewards attached to their card (if applicable).

If the cardholder would like to choose how their transaction is routed, then you should let them know to manually insert or swipe their card, then select their account of choice based on their preferred network.

CR: Visa or Mastercard^® scheme network.
SAV/CHQ: eftpos scheme network.

Merchant Choice Routing is only available on NAB EFTPOS Ingenico MOVE 5000 terminals. It’s not available on NAB MPOS or Verifone terminals.

When enabled, the payment screen on the device will say ‘Merchant Choice Routing’ and will be ready to accept payments.

Merchant Choice Routing is not available for merchants who are on Pricing Package Plans because you already pay a fixed monthly amount on transactions within your included monthly card turnover, regardless of network.

If you choose to enable MCR and have more than one terminal, you must enable MCR for all terminals that are under that Merchant ID (MID).

Can I still add a surcharge on transactions?

Surcharging can only be applied in accordance with the Merchant Agreement and only to transactions that involve a manual swipe or insert of the customer’s card.

Remember your three options….

Option 1: Continue to use your current routing system
Option 2: Enable Merchant Choice Routing
Option 3: Enable Merchant Choice Routing with a limit

Ready to enable? Follow these steps…

First you need to decide whether MCR is right for you
Select your option
Call our Merchant Service Centre on 1300 369 852

If you’re a new merchant and would like to apply for a NAB EFTPOS Ingenico Move5000 terminal with MCR, call our Merchant Sales Team on 1300 338 767.

More 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.