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The Visa chief called Amazon’s idea of banning credit cards issued to the UK on its “incomprehensible” and “unfortunate” platform, but said he hoped the dispute would be resolved through negotiations.
“Obviously, we’re in a difficult negotiation,” Al Kelly told the Financial Times. “The difference here is that Amazon unfortunately decided to solve the problems we face in the community and surprisingly chose to threaten to punish consumers.”
Amazon on Wednesday informed customers that they have stopped accepting it Visa credit cards issued in the UK from next year I will give the affected customers £ 20 for their other purchases using another payment method. The seller also claims that he is trying to seduce Visa as a partner of his US identity card.
“This should not be considered a surprise, because Amazon has been using all available negotiations to reduce the cost of payment,” freelance expert Kenneth Suchoski wrote in a statement that Amazon’s move would not affect much of Visa.
Amazon told UK customers it was acting because of the Visa fee. However, Mastercard and Visa imposed a similar fine in the UK, according to the Bambora payment company.
“I find it strange that he claims to have done this because of the high cost of accepting this in the UK,” Kelly said. “We will definitely be right.”
Visa and Mastercard have announced an increase in exchange rates applicable to payments between the UK and EU Brexit after the introduction of this year. In digital payments where the physical card is not available, the amount was increased to 1.15% on credit repayment and 1.5% on credit repayment from 0.2% and 0.3% respectively.
An expert on Amazon said the exchange rate is only one part of a number of Visa-related transactions. The man said the price hike was alarming in the face of Brexit, and officials noted that the payer was “not raising the price”.
Before Visa fined in October, Amazon moved to reduce its use in markets including Singapore, where a 0.5% interest rate on Visa loans was introduced this year, by Australia. In both countries, vouchers were issued to customers who had adjusted their payment methods.
Amazon considers it unwise for Visa to pay extra to protect fraud in online sales, based on the amount of data and consumer awareness. “Amazon puts a lot of money into protecting our customers from fraud and abuse,” the spokesman said. “However, Visa prices are still high, while traders remain fraudulent.”
The show with Amazon is Visa’s most recent issue as it tackles the threats that threaten its large pay-per-view business.
“These are not the most exciting days of Visa,” said Mizuho expert Dan Dolev. “They are being attacked in several ways.”
Visa and Mastercard have been in effect duopoly on international payments for years due to the popularity of cards as a payment method. However, fintech competition and geopolitical challenges threaten to undermine their power.
Amazon’s move against Visa is a recent example of traders looking to lower their fees. They cited studies that show that sales prices have dropped significantly but that the price they pay has not changed. Payment networks and providers enjoy a 30 to 50 percent profit while retail space is about 3 percent, according to CMSPI technology.
Although the card companies charge a fee for change, they claim that they do not receive much of the money they collect. “At Visa, we have a role in markets where prices are difficult to set prices, and no one is happy with us,” Kelly said. When prices fall, financial institutions are not happy, prices go up and businesses are unhappy.
Traders have been mocking the price of buying stocks for years, but they are gaining momentum in negotiations due to the proliferation of alternative payment methods.
Accounts and account payments mainly limit Visa and Mastercard payments and are increasingly The rate was 13 percent of payments in Europe, according to a new Accenture report.
Financial companies like PayPal have been developing their own payment methods that do not rely on established networks. Last month, Citigroup launched a program that allows merchants to go through a bank to request payments from customers directly, via a credit card system.
“There are new choices that occur every day, reducing exchange rates, which makes them more effective for retailers and better for consumers,” said Anthony Thomson, chairman of UK Zip, Australia’s Australian company “Buy Now, Pay Later”.
Most of these payments are incorporated through software Interfaces, or APIs, such as Plaid, which facilitate secure connection of consumer financial data to third parties.
“It is clear that in the future with the integration of APIs, the use of bank accounts as a substitute for using credit cards,” said Keith Grose, chief of staff at fintech Plaid.
Concerns about the future of his mortgage business prompted Visa to make $ 5.3bn in Plaid last year, but the deal was terminated after the U.S. Department of Justice criticized it for unscrupulous reasons. Visa and Mastercard have also started developing their own APIs and investing in open banking technology.
Amazon has been experimenting with other payment methods through credit card fraud. In August, the company said it would offer BNPL equipment to U.S. consumers through a third party Affirm, allowing the purchase of $ 50 or more to be paid in installments.
A similar system was developed in Germany by Barclaycard, while in Poland and the Netherlands the company worked with a number of companies to offer direct transfers to banks to pay for goods.
In addition to pushing back from traders, there are pressures on government prices around the world.
The UK Payment Systems Regulator said this month it would be reviewing the exchange rate and “intervened to address any issues we know of”.
The U.S. Federal Reserve is set to review alternatives to pay-per-view technology, and experts expect new rules to be released next year.
The two are also facing competition over domestic payments in China, India, Australia, Germany and Russia – which are being encouraged by governments to reduce costs and strengthen national security, says James Booth, chief executive of fintech PPRO.
Currently, efforts are underway to build the European Payments Initiative, which is facing each other serious difficulties.
“There are many payment methods but due to the way the pay market is established, there are a number of disputes which means that some new and existing alternatives are difficult to compete with the cards,” said Alex Ellwood, vice president at CMSPI. . “Paying for cards feeds a lot of people who have money to pay.”
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