Australian consumers back LCR for payments

More than four in five (83%) Australian consumers support the ability of merchants to select the lowest-cost network when processing debit card payments, new research from EFTPOS suggests.

A survey of consumers found growing support for least-cost routing (LCR), with the percentage backing the option increasing eight points from three years ago.

LCR allows merchants to decide what networks to use while processing debit card transactions based on the lowest cost. The option has been publicly supported by Treasurer Josh Frydenberg as a key competitive mechanism to support small businesses.

EFTPOS CEO Stephen Benton said the research also reflects a growing belief in the benefits to consumers of allowing this choice, with 45% of consumers stating that merchants were likely to pass on any fee savings to their customers — up from just 33% three years ago.

“The new survey found that 83% of respondents now think it’s important for merchants to be able to select the lowest-cost network, a figure that highlights growing public awareness and concern over business costs in the COVID environment,” he said.

“The new research shows that Australians clearly recognise and identify with the pressures small businesses face, and the importance of keeping their costs down.”

Image credit: ©stock.adobe.com/au/Seventyfour