LCR sends contactless debit card payments through the network that costs the least. The technology enables a debit payment to be flagged as a specific debit card transaction.
If LCR were not present, the transaction would be sent to the default debit network specified on the customer's card, which may not be the one that costs the least.
DataMesh's software can read a card/phone/watch, decide 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 (potentially any bank), which has awarded the transaction the applicable fee structure.
DataMesh Group chief executive Mark Nagy said: “The unique least cost routing capability developed by DataMesh is a massive win for Australian merchants, especially in this era of contactless payments.
“eftpos’ debit card network accounted for more than two billion cheque and savings transactions in 2019 worth about $130 billion. DataMesh is working with eftpos and other payments industry members in the push for least cost routing, and to bring down fees for merchants in what is a very challenging environment for retailers and consumers.
“Our conservative estimates suggest a potential reduction in fees for merchants of up to $500 million nationally per year if LCR was fully implemented.
“Our LCR software is compatible with many legacy merchant terminals and most acquirers. We estimate more than half of card terminals in Australia are currently unable to fully support LCR, so our technology provides an effective solution and removes the need for acquirers to undertake costly hardware upgrades.”
DataMesh’s software is fully developed in Australia, with all IP owned by the company which operates under PCI Standards Council and the Australian Payments Network regulations. DataMesh’s switching platform is EMV and PCI-DSS Level 1 certified for card present and card not present transactions.