What is the Amazon and Visa dispute about?
Last year, Amazon announced it would stop accepting Visa credit cards from UK customers in January 2022 due to “the high fees Visa charges for processing credit card transactions”. A spokesperson for Amazon explained the decision was made because “the cost of accepting card payments continues to be an obstacle for businesses striving to provide the best prices for customers”.
Visa responded in a statement that it was "very disappointed that Amazon is threatening to restrict consumer choice in the future. When consumer choice is limited, nobody wins”. It said that it would attempt to resolve the dispute to honour its “long-standing relationship with Amazon" and claimed that its transaction fees typically amount to less than 0.1% of the value of a purchase.
Meanwhile, a European Union cap on transaction fees charged by card issuers no longer applies in the UK due to Brexit, and both Visa and competitor Mastercard have since raised fees on transactions between businesses in the UK and the EU. Despite this, Amazon and Visa have stated that the disagreement is not due to any Brexit policies.
It is also notable that Amazon has not taken up the issue of higher fees with Mastercard, however, which is also the issuer for its own credit card.
How has the planned ban on Visa credit cards changed?
The ban on Visa credit cards was meant to come into effect on Wednesday 19 January 2022. Amazon customers have been able to use Visa credit cards up until now, but they were expected to be removed as a supported payment option this week. However, in an email to customers on Monday 17 January, Amazon announced it was working closely with Visa on "a potential solution that will enable customers to continue using their Visa credit cards on Amazon.co.uk". There is currently no indication when the talks might conclude and if an agreement will be reached between the two parties.
Can I still use my Visa credit card on Amazon?
In the meantime, UK customers can continue to use Visa credit cards to make purchases on Amazon as they would normally. The 19 January 2022 deadline no longer applies. Credit cards by other providers, such as Mastercard and American Express, are not affected by the ongoing talks and can also continue to be used as normal.
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