Shoppers to gain from card surcharge limit THE days of feeling ripped off at the shops for using a credit card could be drawing to a close. Next week, new rules aimed at better protecting consumers from excessive surcharges for using credit cards to pay for goods come into effect that could deliver a $350 million a year windfall for shoppers. The changes follow a review by the Reserve Bank of Australia and will give credit card companies the power to force retailers to limit what they charge consumers to use credit and charge cards. "Retailers will need to review their surcharging practices to make sure their surcharges are not excessive and that they are clearly disclosed up front to customers, both in-store and online," Visa country manager for Australia Vipin Kalra said in a statement on Friday. Credit card innovation specialist Tyro Payments estimates Australians spent a staggering $440 billion on credit, debit and charge card transactions last year. It says retailers will no longer be able to charge up to four per cent for each credit card transaction, and will be restricted to as little as one per cent. "It would save the Australian consumer an estimated $350 million a year," Tyro Payments CEO Jost Stollmann said in a statement. Mr Kalra said the majority of surcharges on Visa should be close to the merchant service fee charged to the retailer by the bank. In the case of Visa, the RBA estimates a service fee on average of 0.85 per cent. Retailers found to be surcharging excessively will be notified by their bank of their non-compliance. "It will take a little time for retailers to review the new rules and implement then," Mr Kalra said. Mr Stollman said often consumers were charged nothing to use their cards, but in many cases they did have to pay a fee for petrol, clothing and food. He said the major banks were imposing unnecessary costs on small retailers, who then passed the costs onto customers. "Banks are making record profits, while retailers are struggling to survive," he said. Banks need to lower their 'interbank' fees, which will give retailers the capacity to lower credit card fees for consumers.