18 Nov 2021
U.K issued Visa Credit Cards Will No longer be Accepted by Amazon
The Index Today
Amazon Inc has announced plans to stop accepting U.K credit cards for Visa. The move comes as Amazons battle with the credit card company escalates due to higher transaction fees.
Starting from January 19th2022, Amazon will not accept credit cards which were issued in the U.K as interchange fees on credit card transactions lead to higher prices for consumers. With every credit card transaction taking place on the platform, amazon has to pay a fee to the credit card network which averages around 2%. Amazon spokesperson said, “These costs should be going down over time with technological advancements. But instead they continue to stay high or even rise.”
Visa has come forward to resolve the situation and allow customers to be able to use Amazon in the future. A spokesperson for the company said, “We are very disappointed that Amazon is threatening to restrict consumer choice in the future.” Visa and MasterCard have always been leading the credit network industry and have benefited immensely from the growing use of credit card during the pandemic.
Amazon along with other global merchants have sued Visa and various credit card networks over interchange fees. According to these retail giants, the fees are a hidden tax and are typically shifted onto the end consumer. U.K shoppers affected by the new restriction will be offered $27 off on any purchase by Amazon. This move will help encourage customers to update their payment method or use another credit card company.