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Unlocking Savings: The Power of Least-Cost Routing for Australian Merchants

In today’s rapidly evolving payment landscape, staying informed about the latest developments can directly impact your bottom line. One such development that has been making waves is Least-Cost Routing (LCR), a concept that has the potential to revolutionise the way you process card payments. As the CEO of PAX Technologies, I’d like to shed light on why LCR matters and how it can significantly benefit your business.

What is Least-Cost Routing (LCR)?

In simple terms, LCR allows you, as a merchant, to choose how you process contactless debit card transactions. Instead of following the default payment pathway set by your bank or payment service provider, you have the freedom to opt for a more cost-effective alternative.

Why Does LCR Matter to You?

  1. Financial Savings: LCR can result in substantial cost savings for your business. By processing payments through lower-cost payment networks, such as the EFTPOS system, you can significantly reduce transaction fees over time. These savings can add up, boosting your profitability in the long run.

  2. Empowerment and Choice: LCR empowers you with choice and control over how you manage your payment transactions. You’re not locked into a single option dictated by your bank; instead, you can make informed decisions that align with your business’s financial goals.

  3. Partnerships and Innovation: LCR is not just about cost savings—it’s also about fostering partnerships and embracing innovation. Collaborating with forward-thinking payment solution providers like PAX Technologies can open doors to cutting-edge payment terminals that seamlessly integrate LCR functionality.

The Current Landscape in Australia

The Reserve Bank of Australia (RBA) has recognized the potential of LCR and its impact on merchants’ financial well-being. While the adoption of LCR has been slower than expected, the RBA has extended a deadline for banks and payment service providers to promote merchant uptake of LCR until June 2024. This means that the opportunity to embrace LCR and benefit from its advantages is now more accessible than ever before.

How Can You Embrace LCR?

  1. Stay Informed: Educate yourself about LCR and its benefits. Understand that you have the power to choose how your card payments are processed and that your decisions can impact your business’s financial health.

  2. Engage with Financial Partners: Reach out to your bank or payment service provider to inquire about LCR options. Explore whether they offer LCR-enabled solutions and seek guidance on how to integrate LCR into your payment processes.

  3. Choose Innovative Solutions: Partner with payment solution providers that are at the forefront of technology, like PAX Technologies. Look for payment terminals, such as our suite of Android-powered devices like the A920Pro, that support LCR functionality and provide a user-friendly experience for both you and your customers.


As an Australian merchant, you have a unique opportunity to harness the power of LCR and unlock significant financial benefits. By understanding the concept and engaging with your financial partners and technology providers, you can make informed choices that positively impact your business’s profitability. At PAX Technologies, we’re dedicated to supporting your journey by offering cutting-edge payment terminals that empower you to embrace LCR and thrive in today’s dynamic payment landscape.

Stay informed, stay empowered, and let LCR be the key to unlocking a more prosperous future for your business.