Another Brexit bonus? Amazon to stop accepting Visa credit cards in UK
Business / Fri 19th Nov 2021 at 11:14am
AMAZON will stop accepting Visa credit cards issued in the UK from 19 January, the online retail giant has said reports the BBC.
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.
Amazon is offering £20 for Prime customers to switch from using Visa to an alternative payment method, and £10 for other customers, if they have a Visa cards as their default or only payment method on their account.
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.
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.
Amazon is also considering dropping Visa as a partner for its US co-branded credit card.
It is in talks with payment networks, including Mastercard, American Express and Visa – as part of what it calls a standard process, the BBC has learnt.
Like how it comes in during the new year so as to get the Christmas rush, Not that i would use Amazon.
"Another Brexit bonus?" No it isn't. As per the article "Amazon and Visa said any changes in fees had nothing to do with Brexit." What is a Brexit "bonus" is the £17 Billion lost in just 3 months to new costs and red tape as reported by the Independent a few weeks ago: https://www.independent.co.uk/news/uk/politics/brexit-red-tape-trade-b1951627.html Thankfully this £17 Billion is covered by the £350 Million per week Brexit Bonus. But wait - this £350 Million is going to the NHS. It was on the side of a bus so it must be true. Therefore the £170 Billion is a real loss. Lets hope the trade deals with the Faroe Islands and New Zealand can make up for the £17 Billion loss.