Amazon has announced that it will no longer accept payments from Visa cards issued in the UK due to the high fees charged. Visa considers the decision “strange” at a stage of negotiations.
Amazon will no longer accept credit cards issued by Visa in the UK from January 19th. At issue are the high fees charged by the payment company. Visa has already responded saying this is an “unfortunate” decision and hopes that the wrestling match with the retailer can be resolved.
Visa’s CEO has already called Amazon’s decision “weird” and “unfortunate” but said he hoped the “issue” could be resolved.
“Clearly, we are in a challenging negotiation,” Al Kelly told the Financial Times. “What’s different here is that Amazon, unfortunately, decided to make the challenging negotiations we’re having public and, strangely, choose the threat to penalize consumers,” he said.
Amazon announced the decision last week and offered affected customers a £20 credit to use in another payment method.
An Amazon spokesperson explained, at the time of the public announcement, that card payment costs prevent customers from getting better prices and that these amounts should not remain high or increase even as technology advances.
What is certain is that, according to the payments company Bambora cited by the FT, in the UK Mastercard and Visa set fees on payments that are quite similar.
“I find it quite strange that they claim they did it because of the high transaction costs in the UK,” said Al Kelly. And he concluded: “It is absolutely incorrect”.
Visa and Mastercard announced rate increases applied to payments for transactions between the UK and the EU after Brexit was formalized.
Source: with agencies