Dark Mode
Friday, 20 May 2022
Logo
Amazon to stop accepting Visa credit cards in the UK from 19 January
Amazon-Online shopping/Pixabay

The BBC reported, Amazon online retail giant has told customers it will stop accepting Visa credit cards in the UK from 19 January.


It said the move was due to high credit card transaction fees but said Visa debit cards would still be accepted.


Visa said it was "very disappointed that Amazon is threatening to restrict consumer choice in the future".


Amazon said: "The cost of accepting card payments continues to be an obstacle for businesses striving to provide the best prices for customers."


The online retailer said costs should be going down over time due to advances in technology, "but instead they continue to stay high or even rise".


An Amazon spokesperson said the dispute was to do with "pretty egregious" price rises from Visa over a number of years with no additional value to its service.




Credit cards/Pixabay Credit cards/Pixabay

Visa said in a statement it was "very disappointed that Amazon is threatening to restrict consumer choice in the future. When consumer choice is limited, nobody wins."


Read more: Queen Elizabeth takes part in public duties for first time since Cenotaph absence


It said it had "a long-standing relationship with Amazon" and that it was trying to resolve the situation so customers would be able to use Visa credit cards with Amazon UK.


Amazon declined to say how much Visa charges the retailer to process transactions made on credit cards.


Visa also declined to comment though it claimed that on average it takes less than 0.1% of the value of a purchase.


A blow


Amazon and Visa said any changes in fees had nothing to do with Brexit.


Both Visa and its rival Mastercard have raised the so-called interchange fee on cross-border transactions between businesses in the UK and the European Union following Brexit.


The dispute between Amazon and Visa is to do with the fees the credit card company charges Amazon for its services in the UK.


Read more: Joint Statement on the re-cooperation between Interpol and Syrian Government


James Andrews, senior personal finance editor at comparison website Money.co.uk, said the move "will come as a blow to the millions of Britons" who use Visa credit cards, including Barclaycard and HSBC customers.


"With American Express also rejected by many UK retailers, that means people looking for rewards on their spending or trying to split the cost of shopping with a 0% purchase card on Amazon will be effectively forced to choose a Mastercard," he said.


He added that a rewards card that is offered by Amazon is "powered by Mastercard".


Source: BBC