Amazon will stop accepting Visa credit cards in the UK from January 19, 2022, online retail giants quoted high visa fees in emails to UK customers.
“Unfortunately, Visa credit cards issued in the UK will no longer be accepted due to the high Visa charges for processing credit card transactions after January 19, 2022,” the email said. According to the BBC. Visa credit cards issued outside the UK are exempt.
“You can continue to purchase using debit cards (including Visa debit cards) and non-Visa credit cards such as Mastercard, Amex and Eurocard,” Amazon said in an email to some customers.
Amazon has also asked customers to renew payment methods such as prime membership and subscriptions. “We know this may be inconvenient, and we are here to help you through this transition,” he added.
Visa was disappointed with the decision and said it accused Amazon of limiting customer choices.
“British shoppers can use Visa debit and credit cards at Amazon UK today and throughout the holiday season,” a Visa spokeswoman told the BBC. “I’m very disappointed that Amazon threatens to limit consumer choices in the future. If consumers have limited choices, no one will win.”
“We have a long-standing relationship with Amazon and are working hard to resolve it, so cardholders will be able to use their favorite Visa credit card in the Amazon UK in January 2022 without the restrictions imposed by Amazon. You can use it, “a spokeswoman added.
The Epoch Times contacted Amazon and Visa for comment.
Merchants competing with payment processors over transaction fees are not a new phenomenon. In March, US supermarket chain Kroger Co announced that Smith’s food and drugstore division would stop accepting Visa credit cards due to excessive transaction fees. Reuters reported. Later it made a U-turn on that decision.
Kroger stopped accepting Visa credit cards at the Foods Co store in California last August due to price disputes over interchange and network charges.
There are various charges for card payments, including: Interchange fee“Also known as a swipe fee.” This is the percentage of the transaction costs that the seller’s bank account must pay each time a customer makes a purchase from a store using a credit / debit card. Credit card interchange fees are usually high to account for the additional risk of such transactions.
Visas earlier this year raised the interchange fee charged to merchants (pdf) To process digital transactions between the United Kingdom and the European Union. As of October 19, Visa has increased the fees for digital payments between European customers and UK companies from 0.3% to 1.5% and vice versa. On the other hand, interchange fees for cross-border debit card payments made online range from 0.2% to 1.15%.
Martin Lewis, the founder of MoneySavingExpert, has attributed the price dispute to Brexit.
“This is because Visa is currently increasing its trading rates. [that] EU caps no longer apply (after Brexit) “, Lewis said I wrote it on Twitter.
But CNBC technology expert Ryan Braun Said on twitter It says, “It may be a way to gain bargaining power for visas and lower prices. Small retailers are not in a position to negotiate, but Amazon may be able to negotiate given its size. However, visas are clearly hurt by this decision and can undermine their relationship in the long run. “