Amazon to stop accepting Visa credit cards in UK

[rebbonk]

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

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.

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."

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.

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: https://www.bbc.co.uk/news/business-59306200

[dutchman]

They'll probably reach a compromise before then.

[rebbonk]

I hope so, but playing this out in public doesn't do either side any favours.

My cards are Visa and I'm not going to change. Amazon no longer automatically offers the best prices. I fear that they may be overplaying their hand.

[dutchman]

I've got an outstanding order from last August, they haven't said whether they will still honour it or not?

[dutchman]

As predicted:

UK Amazon users can continue using Visa credit cards after dispute is settled



Amazon and Visa appear to have agreed an 11th-hour resolution to their bitter dispute after the online retailer told customers they can continue using Visa credit cards on the site.

In November, Amazon told customers that from 19 January it would stop accepting payments made with UK-issued Visa credit cards.

At the time, Amazon blamed its decision on “the high fees Visa charges for processing credit card transactions”. Since then the two companies have been engaged in what has been described as a “game of corporate chicken”.

However, on Monday morning, Amazon started sending affected customers emails telling them they would be able to continue to use their Visa credit cards to pay for items, and for Amazon Prime.

“The expected change regarding the use of Visa credit cards on Amazon.co.uk will no longer take place on 19 January. We are working closely with Visa on a potential solution that will enable customers to continue using their Visa credit cards on Amazon.co.uk,” the email stated.

“Should we make any changes related to Visa credit cards, we will give you advance notice. Until then, you can continue to use Visa credit cards, debit cards, Mastercard, American Express, and Eurocard as you do today.”

A Visa spokesperson said: “Amazon customers can continue to use Visa cards on Amazon.co.uk after January 19 while we work closely together to reach an agreement.”