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COSBOA has welcomed the news that the Treasurer has written to the RBA’s Payment System Board to strongly encourage it to mandate both least cost routing as the default, and multi-network debit cards. NANA is an active member of COSBOA and fully supports the action taken by COSBOA and the Treasurer to fairly address the least cost routing issue.
Debit card payments are processed through one of multiple networks. The domestic network, eftpos, charges lower merchant fees to small businesses, but contactless payments like mobile payments typically go through the more expensive Visa or Mastercard networks. Currently small business owners have to unpack their fees, an often onerous task, then ask their bank to switch to make the lowest cost network– a flawed system, considering most small business owners have no idea that the option even exists.