Amazon has just announced that it will no longer block UK Visa credit cards from Wednesday, as the e-com giant had originally planned to do.
As part of a last-minute deal, UK-issued cards will still be allowed to make payments, the company said.
Amazon said it was “in talks” with Visa to reach an agreement.
Responding to News Today, David Ritter, a financial services strategist at digital consultancy CI&T, said it would have ultimately been too difficult for Amazon to call a monopoly on this, especially since issued cards tend to sit behind digital wallets and Amazon’s automatic subscriptions. , like Prime, tend to be tied to Visa cards.
“It makes it too complicated for consumers. Rather, Amazon was more likely to apply pressure tactics to negotiate a longer-term pricing deal,” Ritter explained to AM City
Meanwhile, David Beard, editor and personal finance expert at financial comparison site Lendingexpert.co.uk, was unsurprised by Amazon’s U-turn.
“Dictating consumers how they can pay was an arrogant move on the part of the retail giant.”
“Amazon could have lost customers because they forced them to make a decision; either switch to paying with a debit card or request a new Mastercard. said Beard AM City
“Switching to paying for items with a debit card meant customers would no longer get Visa credit card benefits like cheap borrowing if they had a 0% interest period, cash back, rewards and extra protection for purchases over £100,” he added.
“This is a welcome relief for Amazon customers and a sensible move for the retailer who should always put customers before profits,” Beard concluded.
Last month, Amazon confirmed AM City this morning that it will stop accepting payments made with UK-issued Visa credit cards.
“Due to the high cost of Visa payments, we regret that Amazon.co.uk will no longer accept Visa credit cards issued in the UK from January 19, 2022,” a spokesperson said. Amazon in December.
“The cost of accepting card payments continues to be a barrier for businesses trying to offer the best prices to customers.”
“These costs are expected to decrease over time with advances in technology, but instead continue to remain high or even increase,” Amazon’s spokesperson for the decision explained at the time.
“With the rapidly changing payments landscape around the world, we will continue to innovate on behalf of customers to add and promote faster, cheaper and more inclusive payment options in our stores around the world,” explained the spokesperson last month.
Visa has not yet responded to Amazon’s statement.