Amazon will stop accepting Visa credit cards issued in the UK.
The company said on Wednesday that Amazon will stop accepting Visa credit cards issued in the UK from mid-January.
In an email to customers, Amazon said the change was due to “higher Visa fees” for processing credit card transactions. Visa debit cards and other credit cards will still be accepted, including MasterCard and American Express. This change will be effective from January 19.
Amazon said it believes credit card payment costs — the small percentage of the transaction value that issuers charge retailers — “should go down over time in line with technological advancements.” Instead, the company said, the cost remained high.
“We are deeply disappointed that Amazon is threatening to restrict consumer choice in the future,” Visa said in a statement. It said it was still working on a resolution.
For years merchants have complained about transaction fees that eat into their revenue — some retailers don’t accept American Express because of its high rates, for example — but Amazon’s battle adds to the pressure. could. Visa and others may have to compromise on rates or risk with the world’s largest online retailer.
While Amazon has said Visa fees are a global problem, banning credit card transactions in the UK is far from over. In Singapore, Amazon added a 0.5 percent surcharge on all purchases made using Visa credit cards from mid-September.
Some fees paid to MasterCard and Visa have nearly doubled between 2014 and 2018, according to an independent agency, Britain’s payment systems regulator.
Businesses in the UK have already been subjected to high credit card fees following the country’s exit from the European Union this year. No longer protected by block limits on fees, Visa and MasterCard plan to increase fees for online cross-border purchases between the UK and several countries in Europe.
Retailers in Britain and the European Economic Area have to pay an additional 150 million pounds ($202 million) per year to accept cross-border card payments, the British Retail Consortium said on Wednesday.
#Amazon #stop #accepting #Visa #credit #cards #issued