The Australian Retailers’ Association has called the move “a big win for Australian retailers that has been a long time coming”.
The Commonwealth Bank has followed Westpac and ANZ by allowing merchant customers to choose which payment network processes Mastercard debit or Visa debit card contactless transactions.
Businesses that enable the Merchant Choice Routing (MCR) capability can choose whether the transactions are processed by the eftpos network or through the Visa and Mastercard networks.
The choice of network could reduce the fee a merchant pays, depending on the size of a transaction.
To ensure the smallest fee, merchants can opt to have MCR use the size of each transaction to determine which network to use.
CBA’s move follows calls for banks to allow merchants to choose which network processes contactless card transactions, instead of automatically routing them through the Visa and Mastercard networks – which can result in higher fees.
The Australian Retailers Association Executive Director Russell Zimmerman recently complained to iTnews about the cost of that approach to retailers and merchants.
Today, Zimmerman congratulated CBA in a statement released by the bank: “The Australian Retailers Association congratulates the Commonwealth Bank on its decision to give the retail sector what it wants by offering Merchant Choice Routing, and we look forward to working with CBA in promoting and rolling out this initiative.
The Commonwealth Bank’s solution offers amongst the richest functionality in the market, making it a big win for Australian retailers that has been a long time coming,” Zimmerman stated.