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Amazon To Remove Visa Credit Card Payment Option

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Amazon has announced it will no longer accept Visa credit cards on its UK online marketplace. Visa debit card payments are unaffected by the changes.  

The following email was sent to customers yesterday (17th November 2021):

"We’re writing to notify you of an upcoming change to Amazon.co.uk.

"Starting 19 January, 2022, we will unfortunately no longer accept Visa credit cards issued in the UK, due to the high fees Visa charges for processing credit card transactions. You can still use debit cards (including Visa debit cards) and non-Visa credit cards like Mastercard, Amex, and Eurocard to make purchases. Please update your default payment method now, or add one of these new, eligible payment methods if you do not have one.

"You can update your Prime membership here, and if you have any subscriptions on Amazon.co.uk, you can update them on the ''manage your subscription'' page here.

"We know this may be inconvenient, and we’re here to help you through this transition so you can continue enjoying Amazon’s low prices and wide selection. Please visit this help page for more information on payment methods, or go directly to your account."

Beyond the email to customers, Amazon has said little about the matter, telling Bloomberg, "As a result of Visa's continued high cost of payments, we regret that Amazon.co.uk will no longer accept UK-issued Visa credit cards as of 19 January, 2022," 

A Visa spokesperson said, "We are very disappointed that Amazon is threatening to restrict consumer choice in the future,"

"We continue to work toward a resolution, so our cardholders can use their preferred Visa credit cards at Amazon UK without Amazon-imposed restrictions come January 2022."

Following Brexit, Visa no longer has to adhere to the 0.3% cap on 'interchange' fees - charges imposed by card companies to a merchant's bank for each transaction - and is understood to have increased these to 1.5%.  Neither Amazon nor Visa has confirmed that any of these fees are those associated with their relationship.

Visa's plans were announced back in March 2021, a couple of months after Mastercard said it would increase fees for EU merchants who were selling online goods and services to UK buyers.

Amazon is currently incentivising customers who register a Mastercard, American Express or debit card to their accounts, by offering them £20 credit if they are a Prime member, or £10 if they are non-members.

The BRC announced yesterday that retailers in the UK and the EEA now face an estimated £150 million a year cost increase to accept cross-border card payments, with British retailers alone shouldering an extra £36.5 million, or £100,000 every day. 

Source : Insight DIY Team

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18 November 2021

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