Posts tagged "least-cost routing"

The rise of contactless card payments is squeezing the margins of small businesses, as higher merchant fees increase the cost of taking digital payments, say small business groups.

Commonwealth Bank has become the first of the major banks to commit to automatically routing transactions for small business merchants, weeks after Treasurer Josh Frydenberg said more needs to be done to lower transaction costs for small businesses. 

After a lengthy approval process the competition watchdog has given the green light for BPAY, eftpos and NPP Australia to merge under the banner of Australian Payments Plus.

Ten industry associations representing Australian SMEs have penned an open letter, demanding urgent action be taken to avoid higher transaction costs for Australian retailers.

The Industry Committee behind the slated merger of BPAY, eftpos and the NPP says its proposal will not lead to higher merchant fees.

Tap-and-go payment fees are in the spotlight again with industry groups calling for banks to be "more proactive" about educating customers.

Australia's big four banks are being criticised for being slow to introduce a lower-cost solution for processing tap-and-go payments.