DataMesh enables native least cost routing on payment terminals

LCR allows for the best economic outcome for merchants on contactless debit card payments by sending them through the debit network that costs the least to accept. It enables a debit payment to be uniquely ‘flagged’ as a specific debit card transaction and sent to the lowest cost debit network, resulting in the lowest cost fee structure for the merchant.

Without LCR, the transaction is sent to the default debit network programmed on the customer’s card, which may not be the lowest cost debit network, resulting in higher transaction costs for merchants.

Merchants will use DataMesh’s software to enable automatic selection of LCR for debit transactions, resulting in lower costs for merchants by routing through eftpos.

DataMesh’s software can read the card/phone/watch, decipher whether it’s a debit or credit payment and attach the relevant message to the transaction before it’s sent to eftpos via the acquirer, which has awarded the transaction the applicable fee structure. Merchants are then charged the lowest payment fees on debit transactions.

DataMesh’s software can be uploaded on existing hardware terminals, negating the need for merchant acquirers to buy new terminals, nor requirements for action by merchants or cardholders.

eftpos, the Australian Retailers Association (ARA) and retailers have been pushing for LCR, with the Reserve Bank of Australia (RBA) saying it will consider regulation if it’s not made widely available to merchants.