Least-cost routing for in-person transactions “is now widely available to merchants and take-up by merchants has increased over 2024” the Reserve Bank said on Thursday.

For several years the RBA has been agitating for widespread – leading to universal – deployment by acquirers of LCR, and recent progress has only been achieved in the face of reluctance and recalcitrance, such as by major banks.

As at the end of December 2024, over 75 per cent of merchants had LCR enabled for in-person transactions, the RBA said. 

The bank said it “expects providers to continue enabling LCR for in-person transactions for merchants that could benefit from it and pass the savings on to merchants.”

More promisingly, LCR for online transactions is now available for over 90 per cent of merchants, and take-up by merchants continued to increase throughout 2024. 

The bank said it recently began collecting data on the share of merchants for whom LCR is not available because further work is required by gateways or other third-party providers.

“ These data highlight the role of gateways and other third-party providers in making LCR available for online transactions” the RBA said. 

“While progress has been made, some providers still have more work to do. 

“The bank expects providers, including payment gateways, to accelerate progress on making LCR widely available for online transactions and enabling LCR for merchants that could benefit from it.”