Are you enjoying online shopping on Amazon? Then you should know that starting next year, Amazon.com Inc. will no longer accept credit card purchases initiated with Visa Inc. cards issued in the U.K.
Of course, users will still be able to shop using Visa debit cards issued in the UK, MasterCard, American Express, and others listed here.
The decision is part of a continuing struggle over the taxes charged by card issuers to a merchant’s bank for transactions, also known as over “interchange” fees. Ever since the UK left the EU, Visa has been able to increase the fee to 1.5 percent, from 0.3 percent by EU law.
According to Amazon, “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. 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. Customers can continue to use all debit cards (including Visa debit cards) and other non-Visa credit cards to shop on Amazon.co.uk”
On the other hand, Visa a spokesman said “UK shoppers can use their Visa debit and credit cards at Amazon UK today and throughout the holiday season. We are very disappointed that Amazon is threatening to restrict consumer choice in the future. When consumer choice is limited, nobody wins. 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 UK without Amazon-imposed restrictions come January 2022.”
Curiously enough, MasterCard performed an equal increase to its interchange fees. but hasn’t been checked out by Amazon.