Business Banking
Payment & Merchant Services FAQs

Least Cost Routing (LCR), also known as ‘lowest cost routing’, ‘low-cost routing’, ‘merchant routing’ or ‘smart routing’ is the industry terminology used to explain the new routing functionality on merchant terminals for scheme (Visa/MasterCard) debit card contactless transactions.  The introduction of least cost routing is to help merchants take steps to ensure that debit card contactless transactions are processed through the lower cost payment channel.

Suncorp's Wave & Save is our new EFTPOS solution that uses Least Cost Routing (LCR) to process scheme (Visa/MasterCard) debit card contactless transactions within set transaction limits** through the EFTPOS network as opposed to the default credit card network.  Enabling Wave & Save on a merchant terminal may provide eligible merchants with lower merchant fees on these transactions.

Based on a Merchant’s pricing plan, a Wave & Save Transaction limit** is set to a default position where the transaction amount costs the same to process via both the EFTPOS and Credit Card network.  Scheme debit card contactless transactions valued over the limit will route down the EFTPOS network and you will be charged the debit card fee.

For Existing Suncorp Merchants

Use our Wave & Save Transaction Limit Calculator.

For New merchants

Your Wave and Save Transaction Limit will be calculated based on your new pricing plan with Suncorp.

We believe that our Wave & Save EFTPOS solution may help you take steps to lower your merchant costs if you process debit card contactless transactions.

Prior to the introduction of Least Cost Routing, all contactless transactions were routed via the credit card network and charged the credit card fee.  Eligible merchants who process scheme debit card contactless transactions above their Wave & Save Transaction Limit may see a reduction in their merchant service fees due to the lower acquiring cost for these transactions when they are processed through the EFTPOS network.  The savings may differ across merchants as it’s dependent on their industry type, pricing plan, card mix and transaction value and volumes. 

You will be able to determine if a transaction has been processed via the EFTPOS network or credit card network by what appears on their merchant receipts.  For transactions that have gone down the EFTPOS network, you will see ‘Savings EFTPOS’ or ‘Cheque EFTPOS’.  For transactions that have gone via the credit card network, their transaction receipt will read either Visa Debit or Debit Mastercard.

The least cost routing functionality only works with payments made using a physical card. Payments made using a phone or any other device (i.e. a watch), will still be routed via the credit card network.

No, there will be no changes to the end of day settlement process on your EFTPOS terminal.

No, there will be no changes to the merchant statements.

If you enable the Wave & Save EFTPOS solution, scheme debit card contactless transactions made over the Wave & Save transaction limit**, but under any applicable EFTPOS maximum daily card limits, will be routed through the EFTPOS network. This will help them take steps to ensure that scheme debit card contactless transactions will be processed through the EFTPOS network where the associated transaction fee will be lower, when compared to the credit card fee charged for the same transaction value. 

You are not required to disclose whether a transaction will be routed via the EFTPOS network or the credit card network.

If you manually apply the credit card surcharge to debit card contactless transactions today, then you will need to adjust this amount to ensure the customer is only charged the average cost of accepting that transaction. For more information on the surcharging standard, visit the Reserve Bank of Australia’s website.

If you have the surcharging functionality enabled on their terminal, no change to the terminal will be required.

A customer still has the option to swipe or insert their card and select the account they wish to use to pay for the transaction if they do not want to use the contactless functionality.

There are two options to enable Wave & Save on an existing merchant terminal:

1. Head to our Merchant Services page to download the ‘Misc changes to terminal’ form. Complete the form and send to the email address specified.

Or

2. Contact one of our Business Specialists on 13 11 55.

The following terminals: IWL255, IPP350, MOVE 2500 and MOVE 5000 are compatible with the Wave & Save EFTPOS Solution and a simple download to their terminal will enable the Wave & Save functionality.

For all other terminal types, we will need to swap their terminal with a new compatible terminal.

To enable Wave & Save functionality on your terminal, some merchants may be required to undertake a pricing review.  Please see our Misc changes to terminal form for more information regarding when a pricing review may be required.

Yes, head to our Merchant Services page to download the Misc changes to terminal form. Complete the details required and send to the email address specified.    

You should not experience any differences when processing transactions, other than the merchant copy of the receipts saying ‘Savings EFTPOS’ or ‘Cheque EFTPOS’ when scheme contactless debit card transactions are routed through the EFTPOS network when within the applicable transaction limits**.

If the debit card contactless transaction is processed via the EFTPOS network, the funds will be deducted straight away from their account. If it was processed via the credit card network a hold is placed on their account for a few days until the transactions is received at their bank. The customers receipt docket will say ‘Savings EFTPOS’ or ‘Cheque EFTPOS’ when scheme contactless debit card transactions are routed through the EFTPOS network when within the applicable transaction limits**.

"Merchant facilities are issued by Suncorp-Metway Ltd ABN 66 010 831 722 AFSL 229882 ("Suncorp"). Approved applicants only. Terms and conditions, fees and charges apply and are available on request. Suncorp cannot guarantee savings/lower merchant fees for all merchants that enable Least Cost Routing on their terminals as this is dependent on the merchant's industry, card types used to process payments, the value and volume of transactions and the merchant's pricing plan.

** The Wave & Save Limit will depend on the merchants pricing plan and is set to a default position where the transaction fees are the same to process via both the EFTPOS and Credit Card network. Some bank issued scheme debit cards have a maximum daily card limit on EFTPOS transactions up to $1000 depending on the card Issuer.   If one of these cards is used where the transaction value exceeds the daily card limit, the transaction will be processed via the credit card network and the credit card fee charged. Please refer to suncorp.com.au for EFTPOS roll prices for future orders."

The information is intended to be of general nature only. We do not accept any legal responsibility for any loss incurred as a result of reliance upon it – please make your own enquiries.

Customers using Visa, Mastercard, EFTPOS and American Express can’t be charged an amount higher than then the merchant’s average cost of accepting that card type.

No, the decision to surcharge is at the merchant’s discretion.

The merchant service fees for each card type.

Other fees where applicable include:

• terminal rental
• annual fee
• MOTO fee
• chargeback fee
• EFTPOS paper roll fees
• virtual POS monthly fees.

These fees will be apportioned across each of the card types, based on each card type’s proportion of the total value of transactions.

In addition to the fees paid to Suncorp, you may include some additional types of costs if they are directly related to accepting a particular card type.

These are:

• Gateway fees paid to an external payment service provider.
• The cost of fraud prevention services paid to an external provider.
• The cost of insuring against forward delivery risk. This applies to agents (such as travel agents) who pay an external party to insure against the risk that the agent will be liable to a customer for the failure of a principal supplier (such as an airline or hotel) on payments accepted via cards.
• Dial up phone line costs if the sole use is for the EFTPOS facility. If you make voice calls or it connects to any other device within your organisation, this fee can’t be included.

In each case, these costs must be specific to the particular types of cards that you are surcharging, rather than being a cost that applies to all payment methods accepted by you.

You should use the annual average cost of acceptance in your calculation. However, if only the monthly average cost of acceptance is available, you can use this figure and adjust your surcharge amount when the annual average cost of acceptance is available at the end of the financial year.

If neither is available, we suggest that any surcharge amount you choose to apply be limited to only your MSF fee, until we have enough transaction data available.

Each month your statement will show your average cost of acceptance for the transactions completed that month and your June statement each year will contain the annual average cost of acceptance for the previous financial year.

Please click the link below to see the table.

No, it’s up to you what transactions you apply the surcharge to.

For example, you can either apply it to all transactions or you can choose to only surcharge on transactions that fall under a certain value or apply it to a certain card type used.

You must also ensure that you notify the cardholder at the time of the transaction and that you also have signage up informing customers of the surcharge amount.

If you wish to make changes to your surcharge amount, then you can update this on your terminal.

The surcharge amounts should always be entered inclusive of GST.

Yes, you can manually add a surcharge to the transaction value if you adhere to the rules. 

You must have signage advising the surcharge percent % or dollar $ amount you surcharge, and also inform the customer at the time the transaction is being processed.

The Australian Competition and Consumer Commission (ACCC) will be monitoring surcharging practices to ensure merchants are not surcharging in excess of their average cost of acceptance.

They have the authority to issue penalties if a merchant does not adhere to the standard.

Yes, each statement has a separate cost of acceptance table applicable to that merchant number.  

As long as the merchant facilities are under the same legal entity and have the same industry type, then you can calculate your average cost of acceptance based on the total costs across all of your facilities. 

As the merchant, you have a contract directly with American Express to enable you to process AMEX transactions.

American Express will issue their own statements that will include the average cost of acceptance calculation separately for this card type.

If you surcharge and don’t have the surcharging functionality enabled on your terminal, you can choose to calculate the surcharge as a percentage of the transaction value or as a flat dollar amount per transaction.

We have detailed both options on your Average Cost of Acceptance Table.

If you have the surcharging functionality enabled on your terminal, this will always be charged as a percentage for Visa, MasterCard, AMEX or Diners card transactions and a fixed dollar amount for EFTPOS debit transactions.

No, the Taxi industry is monitored and governed by state legislation and have maximum surcharge amounts they can apply.