The Tyro Blog

7 August 2020 - 3 min read

Product Features

Saving on transaction fees with Least Cost Routing

Least cost routing could help your business realise substantial operating savings in EFTPOS transaction costs each year. If your payment service provider hasn’t switched it on for you yet, here’s some information on how it works for Tyro EFTPOS customers and what one Tyro customer saved.

What is least cost routing (LCR)?

When a customer makes a payment using a contactless enabled ‘dual network’ debit card, with LCR, the payment is securely routed to the cheapest processing network.

At Tyro, we call it Tap & Save1, and the feature is saving Tyro Tap & Save customers around 8.1% on transaction fees each year.2

What is a dual network debit card?

A dual network debit card allows a payment to be processed via either eftpos payments or one of the two international networks, Mastercard and Visa. Most Australian debit cards have the functionality, which is great news for merchants.

Is LCR a Tyro initiative?

We were the first bank in Australia to roll it out to merchants, but no, it’s not ours alone. It’s a market initiative designed to support debit card competition, drive down fees, and reduce knock-on payment costs to consumers.

Importantly for you, not all payment service providers offer the feature – making it a worthwhile exercise to check your fine print to see if it’s available to you.

Tyro customer case study

Now to the CEO of CabFare, Arthur Argyropoulos. In their first year of using Tyro Tap & Save, the business hit a staggering savings milestone:

“We estimate that we’ve saved over $50,000, and those savings we reinvest(ed) in the business to provide more services and
better quality services.”

Arthur calls it his “no-worry payment service”

For merchants seeking out new ways to drive down operating costs in this economic climate, least cost routing is one way you can make it happen.

“If you’re a merchant looking for someone focused on reducing your cost in merchant service fees, the best acquirer out there is Tyro” said CabFare’s CEO.

To find out more about least cost routing and Tyro EFTPOS for countertop and mobile – read more here, or take a look at the Reserve Bank webpage on LCR.

You get in touch with a Tyro payment specialist on 02 8907 1700 between Mon-Fri 8:30am-5.30pm (Sydney time) or click through to our visitor contact form and we’ll get back to you: https://www.tyro.com/get-started/




1: Tyro does not guarantee any cost savings by opting in for Tap & Save. Savings on eligible transactions processed through the cheapest network vary for each business depending on their card mix, transaction volume and amount, industry, and pricing plan. Eligible transactions are contactless debit card transactions less than $1,000. Tap & Save is not available on Special Offer pricing which includes some flat fee simple pricing offers or where you surcharge on debit card transactions as cost savings may not be realised. Yomani CR, Xentissimo and Xenta terminals do not support Tap & Save. For details refer to the FAQs at Tyro.com or call 1300 966 639.

2: 8.1% savings (9.6% savings for hospitality customers, 7.3% savings for retail customers, 4.2% savings for health customers, 5.3% savings for service customers) on Merchant Service Fees represents the potential savings of Tyro eligible merchants (calculated as an average), over the period December 2017 to December 2019 and was based on actual eligible transactions processed during this period.