The taxi surcharge on card payments will be halved in time for the busy holiday season.

Currently, taxi customers are charged a 10% surcharge when they pay their fare with a credit or debit card. This money goes to the provider of the taxi’s electronic payment system. 

The new Passenger Transport Act passed through Parliament last month, paving the way for changes including a 5% cap on taxi surcharges.

The changes begin on 12 December 2014, meaning customers will have more money in their pockets in time for the Christmas period, when taxis are at their busiest.