Amazon to ditch Visa Credit payments: Why the online giant is BANNING the credit cards
Amazon has lashed out at Visa Credit over its high transaction fees. The online retail mega-giant announced on November 17 that it will stop accepting Visa credit card payments from next year. Express.co.uk explores the reasons why Amazon has turned its back on Visa.
From January 19 Amazon will stop accepting Visa credit cards issued in the UK.
The online retailer admitted this would be “inconvenient” to their customers, but they insisted the move was necessary due to Visa’s high transaction costs.
A spokesperson for Amazon said: “The cost of accepting card payments continues to be an obstacle for businesses striving to provide the best prices for customers.
“As a result of Visa’s continued high cost of payments, we regret that Amazon.co.uk will no longer accept UK-issued Visa credit cards as of 19 January 2022.”
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Only Visa credit cards will be refused from next year as no other credits cards are included in this ban.
Visa credit cards issued outside of the UK will still be accepted on the site and Visa debit cards will also be exempt from this new ban.
Credit cards, including American Express, Mastercard and Eurocard, will continue to be accepted by the e-commerce giant.
Amazon’s own-branded credit cards, the Amazon Platinum Mastercard and Amazon Classic Mastercard will also be unaffected by Amazon’s new policy.
Sky reports that Amazon is “particularly angry” at an increase in interchange fees, these are additional cross-border costs “which it believes have risen five-fold since Brexit.”
Amazon has blasted Visa for its high costs, as it claims these fees should be falling as technology has advanced making transactions easier.
Visa said it was “very disappointed that Amazon is threatening to restrict consumer choice in the future”.
It added: “When consumer choice is limited, nobody wins.”
They added they were trying to resolve the crisis with amazon to ensure their Visa credit cards could continue to be used on Amazon UK.
They said: “We continue to work toward a resolution, so our cardholders can use their preferred Visa credit cards at Amazon UK without Amazon-imposed restrictions come January 2022.”
Visa and Amazon have declined to comment on how much Visa Credit charges to process transactions.
Amazon told all their customers in an email on November 17 they should update their default payment method if they use Visa Credit.
Amazon said: “We know this may be inconvenient, and we’re here to help you through this transition so you can continue enjoying Amazon’s low prices and wide selection.”
The online retailer has even offered £10 for its regular customers and £20 for Amazon Prime members to switch from using Visa to another payment method.
On his website, moneysavingexpert.com Martin Lewis recommends that Britons take advantage of this offer “as soon as possible in case the deal is pulled.”
As Amazon’s Ts&Cs state the “promotional offer is valid for a limited time only or while supplies last” and that it “reserves the right to modify or cancel the promotion at any time”.
A spokesperson for Visa assured customers their Christmas shopping wouldn’t be impacted by the ban, they said: “UK shoppers can use their Visa debit and credit cards at Amazon UK today and throughout the holiday season.”
This future deadline also means there’s still time for a comprise to be reached between Visa and Amazon, meaning the ban may not come into force at all.
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