E-commerce giant Amazon recently announced that it will no longer accept payments made with Visa credit cards issued in the UK, blaming the decision on high fees. Visa says that it is “very disappointed that Amazon is threatening to restrict consumer choice in the future.”
CNBC reports that Amazon plans to stop accepting payments made with Visa credit cards issued in the UK starting in 2022. Amazon told certain customers that from January 19 onward, the site will no longer be accepting Visa credit cards issued in Britain “due to the high fees Visa charges for processing credit card transactions.”
Earlier this year, Visa increased the interchange fees it charges merchants for processing digital transactions between the UK and the European Union. Visa shares fell by 2.5 percent in premarket trading following Amazon’s announcement.
Following Brexit, an EU cap on interchange fees does not apply in the UK anymore. This allowed card networks to raise their charges; Mastercard recently increased its U.K.-EU interchange fees also.
Amazon customers have been informed that they will still be able to use debit cards, including Visa issued debit cards, and non-Visa credit cards such as Mastercard and American Express.
Visa commented that it was “very disappointed that Amazon is threatening to restrict consumer choice in the future.” A Visa spokesperson stated: “U.K. shoppers can use their Visa debit and credit cards at Amazon U.K. today and throughout the holiday season.”
The financial giant continued: “We have a long-standing relationship with Amazon, and we continue to work toward a resolution, so our cardholders can use their preferred Visa credit cards at Amazon U.K. without Amazon-imposed restrictions come January 2022.”
Amazon criticized Visa for its high card charges, stating: “The cost of accepting card payments continues to be an obstacle for businesses striving to provide the best prices for customers. These costs should be going down over time with technological advancements, but instead they continue to stay high or even rise.”
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan or contact via secure email at the address firstname.lastname@example.org