LONDON — Amazon plans to stop accepting funds made by way of Visa credit cards issued in the U.Ok. beginning subsequent 12 months.
The e-commerce big has advised some prospects that, from Jan. 19 onward, the firm will not settle for Visa credit cards issued in Britain due to excessive charges charged by the fee processor.
Visa earlier this 12 months hiked the interchange charges it prices retailers for processing digital transactions in the U.Ok., following the nation’s exit from the European Union. The transfer adopted an identical improvement from Mastercard, which additionally elevated its charges.
Amazon prospects have been advised they are going to nonetheless give you the option to use debit cards — together with these issued by Visa — and non-Visa credit cards like Mastercard and American Specific. Customers are being inspired to replace their default fee methodology forward of the adjustments. The information was first reported by Bloomberg.
Visa stated it was “very disappointed that Amazon is threatening to restrict consumer choice in the future.”
“U.K. shoppers can use their Visa debit and credit cards at Amazon U.K. today and throughout the holiday season,” a Visa spokesperson advised CNBC.
“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 U.K. without Amazon-imposed restrictions come January 2022.”
Amazon blasted Visa for its excessive card prices. “The cost of accepting card payments continues to be an obstacle for businesses striving to provide the best prices for customers,” a spokesperson for the firm advised CNBC.
“These costs should be going down over time with technological advancements, but instead they continue to stay high or even rise.”