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Amazon should stop accepting payment using Visa credit cards issued in the UK from early next year as the online giant tries to repay the payments made by major networks.
In an announcement received by some customers this week, the ecommerce group mentioned the “high Visa fees for processing credit cards”.
Amazon’s move is the latest in a continuing battle between retailers, banks and payment networks operated by Mastercard and Visa.
This change does not apply to Visa cards, credit cards issued outside the UK, or credit cards issued by competitors such as Mastercard.
Visa shares were less than 5 percent on initial sales.
Amazon is offering 20 customers at their next price using another payment method to encourage them to change payment method.
Some of the options offered are Amazon credit cards from American Express and Mastercard. and Ocean Credit card issued by Capital One. Visa currently does not offer Amazon credit card.
Visa said it was “very frustrating that Amazon is threatening to ban consumer selection”, adding that “it will continue to work to resolve the issue, so cardholders can use their Visa-preferred cards in Amazon UK without any restrictions imposed by Amazon in January 2022.”.
Amazon said the price of paying cards is a barrier to giving customers the best prices. “With ever-changing payments around the world, we will continue to innovate on behalf of customers to increase and promote faster, cheaper and more integrated payment systems in our stores around the world. ”
An Amazon psychiatrist stated that the decision did not make any money but that Visa had used its position to save more money. Earlier this year, Amazon announced an increase of 0.5 percent on Visa credit card purchases in Australia and Singapore.
Visa said the amount they pay, the amount they pay, for domestic sales is less than 0.1 percent of the transaction value. Mastercard fees sound similar.
A report released Wednesday by the Payment Systems Regulator in the UK found that Mastercard and Visa were the largest performers in the UK. It found that the fees paid by cardholders in both companies have risen sharply in recent years, doubling from 2014 to 2018, although they have remained lower than the exchange rate.
The issue of fines has been very difficult to follow in Brexit with the idea of Mastercard and Visa to add the exchange rate this year – what they could not do under the EU hats.
“When the online giants start crashing, you know things are getting worse,” said Mike Cherry, chairman of the Federation of Small Businesses, who said fines are often more difficult for small businesses.
Globally, one of the few UK banks offering credit cards on the Visa network, declined to comment. Co-op, which also provides Visa credit cards, did not respond to a request for comment.
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