Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Amazon to stop accepting Visa credit cards payments in U.K.

Visa credit cards payments

Customers can still use Visa debit cards, MasterCard Inc. and American Express Co. credit cards, as well as Visa credit cards issued outside of the U.K.

Amazon.com Inc. will stop accepting payments made using Visa Inc. credit cards issued in the U.K. starting next year, the latest attempt by retailers to push back against transaction fees charged by payment networks.

Amazon users were told of the changes this week. After making purchases they received a notification from Amazon saying that “starting 19 January 2022, we will no longer accept Visa credit cards issued in the U.K.” due to the high fees charged by Visa to process transactions.

Customers can still use Visa debit cards, as well as MasterCard Inc. and American Express Co. credit cards, as well as Visa credit cards issued outside of the U.K., according to an email the retailer sent Wednesday. The message offered twenty pounds (US$27) off their next purchase to customers who set a debit or non-Visa credit card as their payment default.

The cost of accepting card payments continues to be an obstacle for businesses striving to provide the best prices for customers, a spokesperson for Amazon said. These costs should be going down over time with technological advancements, but instead they continue to stay high or even rise.

Card fees are already a flashpoint between merchants, banks and payment networks such as Visa and Mastercard. Retailers have long complained about the billions they spend each year to accept electronic payments, a figure that’s grown in recent years as fees increase and consumers flock to premium cards, which carry higher interchange rates.

We are very disappointed that Amazon is threatening to restrict consumer choice in the future, a Visa spokesperson said in a statement.

The spokesperson 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.

Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.