The Payment System Board of the Reserve Bank has abandoned a proposal to prohibit the setting of a default network in dual-network debit cards but remains committed to ensuring that merchants can choose their preferred network through least cost routing. The RBA released a paper on the Australian debit card market yesterday, saying the feedback it received indicated that any benefits from a prohibition on the setting of a priority network for debit cards would be outweighed by the costs and risks involved. The process would be costly because it would involve re-issuing all dual-network debit cards. “There would also be the risk of failed transactions [by departing from global standards], particularly for overseas transactions and for certain types of transactions in Australia, including those made at legacy terminal,” the paper said. Meanwhile, the RBA gave notice that if providers, including acquirers, payment facilitators and gateways, did not make substantial progress in enabling least cost routing by June 2024, it would look at imposing regulatory requirements to do so. “Going forward, the board also expects the industry to implement new form factors in a way that is compatible with LCR from the outset,” it said. The RBA said that over coming months it would work with providers to understand what progress they are making with LCR and clarify with them why some merchants have not had LCR enabled. Earlier this year the RBA released data compiled last December that showed which merchant acquirers are making least cost routing available to merchants for contactless card payments. The data, compiled in December, show Square, Suncorp Bank, Tyro, Westpac, Fiserv and Adyen making LCR available to 100 per cent of their merchants. ANZ Worldline has 89 per cent merchant availability, Commonwealth Bank 89 per cent and NAB 55 per cent.  Speaking at the time, Reserve Bank head of payments Ellis Connolly said the gaps in availability were mainly due to providers needing to upgrade old terminals. The data also showed the take-up of LCR by merchants, for each acquirer. NAB was last with only 14 per cent of its merchants (where debit cards are presented) on plans with LCR enabled. Square is on top with 100 per cent, Suncorp 58 per cent, Tyro 56 per cent, CBA 42 per cent, Westpac 30 per cent, Fiserv 27 per cent, ANZ Worldline 23 per cent and Ayden 17 per cent. Connolly said: “Merchant groups have consistently highlighted that LCR is not easily accessible in practice. The report highlights that some providers have been much more successful than others in moving their merchants across to plans with LCR. “Providers that have yet to enable LCR for all their merchants should proactively encourage them to take it up.”