Major changes will soon be felt in the credit card payment system of the National Australia Bank Ltd (ASX: NAB) as the giant bank announced on Monday that a new scheme is set to take effect that seeks for the settlement of high interests first prior to payment of lower interest items.

Banking industry experts said that it used to be that banks give priority to credit card repayments of debts with lower interests that according to experts eventually rendered debt obligations with higher interest balance to accumulate further surges in interest charges.

Yet according to NAB personal banking group executive Lisa Gray, that widespread banking industry practice would now be a thing of the past for Australians who regularly transact with one of the country's four major banks.

Ms Gray stressed that the practice, which is clearly disadvantageous to banks' customers, would "no longer be the case for NAB customers."

She said that in order ensure that NAB clients would be able to actively participate in the reduction of their overall interest costs, "credit card transactions attracting the highest interest rate will be paid off before the lower interest rate."

The bank added that further shavings could be expected on NAB customers' interest costs as the new credit card payment system would also insure that all balance transfers would revert to the lower purchase rate by the end of the billing cycling period.

NAB said that the new systems were all set to take effect immediately and would cover up to 1.5 million of NAB consumers and credit card accounts holder.