Credit cards

Amazon to ban Visa credit cards in UK

AMazon announced on Wednesday that it will no longer accept UK-issued Visa credit cards from January, citing high transaction fees charged by the company.

The news comes after the UK left the European Union, which got rid of mandatory caps on credit card transaction fees. Amazon said consumers are still allowed to use Visa, Eurocards, Mastercards and American Express debit cards.

“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,” an Amazon spokesperson said. MarketWatch. “Due to the high cost of Visa payments, we regret that Amazon.co.uk will no longer accept UK-issued Visa credit cards from 19 January 2022.”

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Visa has increased its surcharge to 1.5% of the transaction value for credit card payments in the UK and EU, made online or over the phone, from 0.3%. It also changed the fee for debit card transactions to 1.15% from 0.2%, Reuters reported.

Visa said it hopes to reach an agreement with Amazon in the near future so that its customers can still use their credit cards without problems.

“We are very disappointed that Amazon is threatening to restrict consumer choice in the future,” a Visa spokesperson said. MarketWatch. “When consumer choice is limited, no one wins.”

The battle between Amazon and Visa has prompted the UK Trade and Business Commission to call on the government to improve the UK-EU trade deal.

“If Amazon can’t make it work, with all of its resources and its ability to navigate legislation to avoid costs, then small businesses don’t stand a chance and therefore the government needs to improve the trade and cooperation agreement. between the UK and the EU to keep UK businesses competitive,” Tamara Cincik of the UK Trade Committee said Reuters.

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Amazon said it was considering dropping Visa as a partner on its US co-branded credit card, according to Reutersbut no official decision has been made.