The RBA is set to overhaul credit card surcharges.

The RBA is about to introduce overhauls to the surcharges placed on consumers who pay for purchases by credit card.

The news will be welcomed by credit card owners, where changes will see retailers limited to the amount of surcharge that they can place on payments made by credit card. "From March 18, Visa and MasterCard can limit to ensure their card transactions are not surcharged more than the reasonable cost," said John Stollman of Tyro Payments.

The current average retail surcharge of 1.9 percent for Visa and MasterCard will be cut down to around 0.87 percent. Amex will see the average 2 percent surcharge cut to 1.87 percent and Diners from 4 percent down to 2.1 percent.

The largest changes will be seen when paying for services such as taxi fares where the average 10 percent surcharge will be knocked in half. Similarly the average 7 to 8 percent charged by airlines for purchasing a ticket by credit card will see a reduction of almost 50 percent, reports the Daily Telegraph.

A credit card comparison to take advantage of the current low on credit card interest rates combined with the upcoming changes to the surcharges on payments, is putting Australians in a prime position to implement a dramatic reduction to the costs of owning a credit card.

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