The Tyro Blog

20 January 2022 - 3 min read

Business Strategies

What is least-cost routing and how can it benefit my business?

When a business accepts an electronic payment from a customer that requires a bank, a payments provider, or intermediary to process the transaction – the business usually incurs a service fee.

In Australia, debit card transactions can be routed over one of three networks: Visa Debit, Mastercard Debit, or eftpos – each may incur a different cost to the business.

Least-cost routing (commonly called LCR) is designed to keep these transaction fees to a minimum by processing eligible contactless debit card transactions through the cheapest network.

Eligible cards include dual network debit cards, which can be identified by having both the Mastercard or Visa logo on one side and the eftpos logo on the other. When tapped on an EFTPOS machine enabled for LCR, least cost routing will select the cheapest network for the transaction.



Benefits of least-cost routing

Even the smallest of transaction fees can add up, so the biggest benefit of least-cost routing is driving down operating costs and putting more money in your back pocket.

Since launching in March 2018, Tyro’s version of LCR Tap & Save has saved businesses as an average 8.5% on Merchant Service Fees, totalling over $10.3 million1.

For small businesses, these savings can go a long way—allowing them to invest in the areas of the business that matter most.

CEO of CabFare, Arthur Argyropoulos, attests to this, saying, “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”. Calling it a no-worry payment service, Arthur says, “if you’re a merchant looking for someone focused on reducing your cost in Merchant Service Fees, the best acquirer out there is Tyro”.

How Tyro’s Tap & Save works

Integrated with our signature Tyro EFTPOS machines, Tyro Tap & Save automatically routes eligible contactless debit card transactions under $1,000 through the cheapest network, meaning you don’t need to put in extra work to reap the rewards. Any debit contactless transactions of $1,000 or more will continue to be routed via the original network due to the common daily limit on eftpos transactions.

Tyro Tap & Save involves an easy opt-in process, no activation fees, seamless connection once activated, and zero disruption to your business. Once set up, you can easily monitor costs in the Tyro Portal. Both existing and new customers can activate Tyro Tap & Save.


As a small business, reducing costs is critical to maintaining profitability and staying on top in a competitive market. By keeping Merchant Service Fees to a minimum, Tyro Tap & Save is a simple step your business can take to ensure you’re not paying more than you have to.

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1 8.5% savings on Merchant Service Fees represents the potential savings of Tyro eligible merchants (calculated as an average), over the period December 2017 to June 2020 and was based on actual eligible transactions processed during this period. $10.3 million in fees represents the total savings on Merchant Service Fees calculated over the period December 2017 to June 2020. 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. For details refer to or call 1300 00 TYRO (8976).