Merchant Choice Routing

Giving you more choice and flexibility. Merchant Choice Routing (MCR) is a new optional feature which you can enable on CommBank Essential Lite and Essential Plus terminals to select which network to use when processing contactless transactions made with Mastercard and Visa debit cards.

Benefits for your business

Potential cost savings : Depending on your card and transaction mix, enabling MCR may offer you cost savings.

Choice and flexibility : You can choose if or when you would like to enable MCR, and you have the flexibility to set the options that suit your business.

Control : You can change your MCR options at any time, adjusting your settings to get better cost savings, depending on your pricing plan.

Who can use MCR?

MCR is available to CommBank merchants with an Interchange Plus pricing plan and an Essential Lite or Essential Plus device. MCR does not apply to you if you have a Simple Merchant Plan, since you already pay a fixed monthly fee for your terminal and included card transactions, regardless of network and card type.

Deciding if MCR is right for you

Every business is different, and the potential for savings from MCR will depend on your transaction volumes, card mix and turnover. So only you can decide if MCR is right for your business and which MCR option is best suited to you. Here are some questions to consider when you decide: • What are you paying in fees right now? If you are charged interchange fees, your last CommBank merchant statement has a detailed breakdown of the fees you’ve paid. • What are the fees for processing debit transactions with different networks? For more information about your CommBank Merchant Service Fees, review your pricing plan. For more information about scheme interchange fees, visit the scheme websites:

Visa www.visa.com.au/about-visa/interchange.html

Mastercard www.mastercard.com.au/en-au/about-mastercard/what-we-do/interchange.html

• What is your typical mix of transaction types?

Without MCR, all contactless transactions are automatically processed through the Visa and Mastercard networks, depending on card type. When you enable MCR you can select your own network routing options when processing dual network debit contactless transactions. The Commonwealth bank MCR solution provides 3 options for Merchants to choose from, these include: Option 1: (Scheme only) • All contactless Visa debit card transactions processed by Visa. • All contactless Mastercard debit card transactions processed by Mastercard. Option 2: (eftpos only) • All contactless Visa debit card transactions processed by eftpos. • All contactless Mastercard debit card transactions processed by eftpos. Option 3: (Route transactions by value) This option provides the flexibility to set a transaction threshold limit, which means that transactions up to and including your set threshold limit will be processed via your chosen primary network (either Visa/Mastercard or eftpos) and transactions above your set threshold limit will be processed via your chosen secondary network (either Visa/Mastercard or eftpos).

A Route all transactions to Mastercard OR B Route all transactions to epos OR < C Set Transaction Threshold for Debit Mastercard cards >

A Route all transactions to Visa OR B Route all transactions to epos OR < C Set Transaction Threshold for Visa Debit cards >

You can also choose different options, including different thresholds, for Visa and Mastercard.

How to enable MCR on your terminal

1. Review your pricing plan and recent transactions to ensure that MCR is right for you. If not available, use your previous monthly statements to understand your business activity. 2. Review which MCR option is right for your business. 3. Contact the merchant support team on 1800 230 177 at any time to enable MCR.

We’re here to help

If you need help understanding your current pricing plan or would like more information on Merchant Choice Routing please contact us:

1800 230 177 www.commbank.com.au/mcr

Things you should know: Merchant Choice Routing is only available on Essential Lite and Essential Plus terminals, it is not available on Albert, Emmy, Leo, IWL255, EFTPOS 5110, EFTPOS 7910 or EFTPOS Health terminals. The Bank charges the actual wholesale interchange fee for every purchase transaction. The wholesale interchange fee is set and monitored by the relevant scheme and is subject to change from time to time as the schemes see fit. This fee can appear as a percentage and/or per item based fee. This information has been prepared without taking into account your individual and business objectives or needs You should read and consider the Merchant Agreement (hyperlink to including relevant Merchant Choice Routing terms and conditions, which govern the use and operation of your merchant facility before making a decision. Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945