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 Horizon Bank 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 Horizon Bank 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 than iOS18/WatchOS 11?
Both existing and newly provisioned Horizon Bank 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 Reserve 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.
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 366 565.
Frequently Asked Questions
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.
What is 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. Horizon Bank’s Debit Cards are Dual-Network Debit Cards.
How do I check if my debit card in Apply Pay supports both the Visa and eftpos payment network?
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 Horizon Bank 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 Horizon Bank Debit Card on a terminal, the transaction is automatically routed to the default network programmed on the card.
Will I be charged fees?
A transaction fee may apply depending on which account the transaction on the Debit Card is linked to and which network the transaction is processed through. Generally, Horizon Bank transaction accounts that charge a fee for EFTPOS transactions will be affected. This is because you could be charged an EFTPOS fee for what you thought was a Visa transaction, as a result of the merchant routing the transaction via a different network. To view a copy of our current fees and charges visit https://horizonbank.com.au/help/rates-fees/fees-and-charges/
Will this change affect my Horizon Bank 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.
