Important changes to Apple Pay transactions
From September 2024, there will be important changes to our Debit Cards in Apple Pay which will impact how Apple Pay Mobile Wallet transactions are routed and processed.
What’s changing?
All Community First Debit Cards are Multi-Network Debit Cards meaning you can make transactions using either the EFTPOS or Visa network.
From September 2024, in Apple Pay you will no longer have the choice to select the payment network when you transact in-store. The Network Selection will be performed by the merchant instead of you, the cardholder, meaning when you pay using your card, it’s up to the merchant to choose whether the transaction is an EFTPOS or a Visa transaction.
You can still use Apple Pay the same way you always have by double clicking the side button and authenticating with Touch ID, Face ID or passcode.
Depending on the type of transaction account you hold and which the card is linked to, this means you may also incur a transaction fee depending on how the merchant chooses to route the transaction.
Will the change apply to everyone with a Debit Card provisioned in Apple Pay?
Users who upgrade to iOS 18 and/or WatchOS 11 and provision a Community First Debit Card to apple Pay will no longer have the choice to select the payment network (eftpos or Visa) when they transact in-store. This choice will reside with the merchant instead.
What if I have an iOS/WatchOS older then iOS18/WatchOS 11?
Both existing and newly provisioned Community First Debit Cards in Apple Pay with an iOS/WatchOS older then iOS18/WatchOS 11 will continue to have user choice.
Why the change?
When a merchant (e.g. a shop or business) accepts payment from a customer via a debit or credit card, the merchant is charged a fee by their bank or payments provider. The Rserve Bank of Australia (RBA) has decided that the Merchant should be able to choose how the transaction gets routed as they are the ones who are incurring the fees.
In Australia, debit card transactions can be processed through either eftpos or the Visa/Mastercard network. The cost the merchant faces from their financial institution for accepting a debit card transaction can vary depending on which network the transaction is processed through. For this reason, the RBA expects mobile wallet providers, to support Merchant Choice Routing.
Frequently Asked Questions
To assist with navigating this change, we’ve included some FAQs below:
What is Merchant Choice Routing?
When a customer makes a payment with their dual-network debit card, the merchant may choose to send the transaction via the debit network that costs them the least to accept. This is known as ‘least-cost routing’ or ‘merchant-choice routing’. If the merchant chooses not to route, the transaction will be sent via the default network.
If you perform a transaction that a merchant chooses to route via a different network, it does not affect which account the funds are pulled from, and the different networks offer similar protections to the cardholder from fraud and disputed transactions for in-person transactions.
If you would like more information on Merchant Choice Routing, please visit the RBA’s website Least-cost Routing of Debit Card Transactions | RBA.
What is a Dual-Network Debit Card?
Most debit cards in Australia have a functionality that enables a payment to be processed via either EFTPOS or one of the two international networks – Visa/Mastercard. These are called Dual-network or Multi-Network debit cards. Community Firsts Debit Cards are Dual-Network Debit Cards.
How do I check if my debit card in Apple Pay supports both Visa and eftpos payment networks?
You can determine whether your dual network debit card supports both networks by using your iPhone and following these steps;
1. Open the Wallet app.
2. Tap on your card.
3. Tap the More button
4. Tap Card Number. Within the Card Number section, if you see Mastercard or Visa and eftpos network, then the card is a dual network debit card.
Will I still have the choice to select my preferred network when transacting?
When using your Community First Debit Card you can always select a particular network by inserting your Debit Card into a terminal to make a payment. When doing this you will be asked to select which network to use.
If you’re making a contactless payment by tapping your Community first Debit Card on a terminal, the transaction is automatically routed to the default network programmed on the card.
Will I be charged fees?
Easy Street’s transaction accounts are electronic fee-free meaning you won’t be charged any fees by us
To view a copy of our current fees and charges visit www.communityfirst.com.au.
Will this change affect my Community First credit card if I have one?
These changes only apply to dual-network debit cards; it does not affect members using credit cards.
Is there anything I need to do ahead of this change?
There’s nothing you need to do; the change will happen automatically.
We’re happy to help
If you do have any questions about this change or would like help managing your accounts or cards, please feel free to give us a call on 1300 13 22 77.
Last updated: 30 August 2024
The information contained in this article is only correct at the point of time of publication. It is general information and has been prepared without taking into account your personal circumstances, objectives or needs. Please consider if this information is right for you before making a decision to acquire any product.