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Amazon will ban payments with UK-issued Visa credit cards from January 19, 2022. It will be possible to pay with Visa debit cards, as well as credit cards from MasterCard, American Express and other companies.
Amazon is blocking UK Visa credit cards due to controversy over fees that bank issuers charge for each transaction. Visa's fees for transactions between the UK and the European Union (where Amazon UK handles payments) was previously capped by EU law at 0.3%. But since the UK left the EU, Visa has raised that fee to 1.5%.
It's worth noting that Visa isn't the only company to have introduced this change. MasterCard increased fees even earlier than Visa, but Amazon did not block it. It is not entirely clear why the retailer selected Visa. This is likely due to the company's relatively complex payment rules. For example, Bloomberg notes that Visa has increased transaction fees for e-commerce sites while lowering fees in other areas such as education and real estate purchases. It is unclear if there are similar differences in the rules of MasterCard or other issuers.
Amazon said in a statement that payment fees are a hindrance for businesses looking to lower prices.
“Commission costs should decrease as technology advances, but instead they continue to rise. We're sorry but Amazon.co.uk will no longer accept UK-issued Visa credit cards. Customers can continue to use all debit cards (including Visa). and other non-Visa credit cards for purchases on Amazon. "
A Visa spokesman told BBC News that the company was very disappointed with the retailer's decision.
"We have a long-standing relationship with Amazon and we are continuing to work to resolve it so that shoppers can use their Visa credit cards with Amazon UK without restrictions."
Amazon is blocking UK Visa credit cards due to controversy over fees that bank issuers charge for each transaction. Visa's fees for transactions between the UK and the European Union (where Amazon UK handles payments) was previously capped by EU law at 0.3%. But since the UK left the EU, Visa has raised that fee to 1.5%.
It's worth noting that Visa isn't the only company to have introduced this change. MasterCard increased fees even earlier than Visa, but Amazon did not block it. It is not entirely clear why the retailer selected Visa. This is likely due to the company's relatively complex payment rules. For example, Bloomberg notes that Visa has increased transaction fees for e-commerce sites while lowering fees in other areas such as education and real estate purchases. It is unclear if there are similar differences in the rules of MasterCard or other issuers.
Amazon said in a statement that payment fees are a hindrance for businesses looking to lower prices.
“Commission costs should decrease as technology advances, but instead they continue to rise. We're sorry but Amazon.co.uk will no longer accept UK-issued Visa credit cards. Customers can continue to use all debit cards (including Visa). and other non-Visa credit cards for purchases on Amazon. "
A Visa spokesman told BBC News that the company was very disappointed with the retailer's decision.
"We have a long-standing relationship with Amazon and we are continuing to work to resolve it so that shoppers can use their Visa credit cards with Amazon UK without restrictions."
