RBA could cap credit card surcharges

There is nothing more annoying than being hit with a sizeable charge when paying for goods with a credit card.

More and more Aussies are using plastic when buying products on a daily basis, as they are far more convenient than carrying cash around.

They are also a lot more secure, as you can easily cancel the card if it is lost or stolen, whereas cash is gone forever. However, excessive charges issued by merchants put many people off using credit cards.

The Reserve Bank of Australia (RBA) lifted the ban on surcharges in 2003 and many organisations took advantage of this.

At the moment, customers pay an average surcharge of two per cent on their transactions, whereas merchants are only paying one per cent.

Leaders at the central bank are now looking to cap the fees that retailers can issue to customers when using a credit card, the Australian Associated Press reports.

The bank's payments system board, which includes governor Glenn Stevens, could make a decision by the end of the week.

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