Posts tagged "what is least cost routing"

Australian payments platform Zeller has launched its Tap to Pay on iPhone system, with CEO and co-founder Ben Pfisterer promising a best-in-class experience for merchants — and a fee structure which fairly represents the hidden costs of providing point of sale services.

The Reserve Bank of Australia has given breathing room to the major banks and payment service providers failing to promote least-cost routing among merchants, saying they have until June 2024 to boost merchant uptake before facing a regulatory crackdown.

Australia's smallest businesses are saddled with card transaction fees triple that applied to major corporations and the take-up of cheaper options remains "disappointingly low", according to the Reserve Bank of Australia.

The ACCC alleges that after the RBA changed the rules in 2017 to demand so-called least cost routing, Mastercard did deals with the major retailers in an attempt to sidestep the new directives.