Amazon to stop accepting Visa credit cards in UK from January 2022
Information about Amazon to stop accepting Visa credit cards in UK from January 2022
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.
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”.
Mastercard’s executive vice chairman Ann Cairns, said: “It’s very important that customers have choice, and have the widest variety of ability to pay, whether that’s through cards or from their bank accounts or cash, and remember that it is never the consumer that pays fees.”
“We talk to Amazon all the time because obviously we are two big global businesses and Amazon is one of our top customers around the world.”
Retail analyst Steve Dresser said in a tweet that Amazon could be aiming to bring Visa fees down with its move.
Amazon to stop accepting Visa credit cards from January next year. A challenge when such a big retailer decides to stop accepting payments…. Aiming to bring fees down? pic.twitter.com/vHYUkChO4K
— Steve Dresser (@dresserman) November 17, 2021