LCR

This stands for least-cost routing and is a scheme initiated by the Reserve Bank to cut card payment processing fees for businesses in the hope that this will result in less cost to consumers. Retailers in Australia are allowed to recoup their payment costs by surcharging customers but they are not supposed to make a profit. The situation is complex in that an eftpos transaction costs .3 per cent, whereas Visa and Mastercard cost around 1.3 and 1.7 per cent, respectively.  A debit card can be directed to an eftpos network if it is inserted or swiped, but a tap will automatically go to Visa or Mastercard.  The RBA has proposed that terminals in businesses should automatically default to the least-cost card network and are threatening to make it mandatory in the near future.