Amazon won’t accept payments from UK Visa credit cards from 2022 | Daily Mail Online

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imageAmazon revealed today it will stop accepting payments made using Visa credit cards issued in Britain from next year – sparking a bitter war of words between the firms.UK customers buying products will still be able to use Visa debit cards, Mastercard and Amex credit cards as well as Visa credit cards issued outside of Britain.But the Seattle-based firm has now sent out a mass email to say it will no longer allow Britons to make payments on UK Visa credit cards from January 19, 2022.The online retailer hit out at Visa by saying it will no longer accept the credit cards due to ‘the high fees Visa charges for processing credit card transactions’.

But Visa struck back, saying it was ‘very disappointed that Amazon is threatening to restrict consumer choice, adding: ‘When consumer choice is limited, nobody wins.’ MoneySavingExpert founder Martin Lewis said today that the move was ‘because Visa is increasing transaction rates now the EU cap no longer applies post Brexit’, adding: ‘It’s a possible negotiating tactic for Amazon to gets its fees reduced.’ Visa would not say how many UK cardholders it has for commercial reasons, and Amazon declined to say how many customers will be impacted by the decision.Neither firm would comment on what cut is taken by Visa or other card companies, which is confidential.The number of customers affected will likely be in the millions.Barclaycard and HSBC both currently rely on using Visa’s payment system, while Amazon’s own credit card has been in partnership with Mastercard since 2017.

Experts said the Mastercard link suggests Amazon would have a much closer relationship with the company and therefore probably better rates than with Visa.Amazon has imposed charges on Visa credit card users in other countries in recent months, including Australia and Singapore where there is a 0.5 per cent surcharge.Merchants have long disputed with payment processors over transaction fees – with one recent example being US supermarket chain Kroger, although it later U-turned.Kroger stopped accepting Visa credit cards at its 142 Smith’s Food and Drug Stores outlets from April 2019 – before reversing the decision six months later in October.Some customers received a notification from Amazon this week about the payment changes Some customers received a notification from Amazon this week after making purchases, which said that ‘starting 19 January 2022, we will no longer accept Visa credit cards issued in the UK’ due to the high fees charged by Visa to process the transactions, as per the report.A Visa spokesman told MailOnline today: ‘UK shoppers can use their Visa debit and credit cards at Amazon UK today and throughout the holiday season.

A retailer accepting card payments works with a financial institution known in the industry as an ‘acquirer’ such as a bank or company like Worldpay offering payment services.

These companies charge a fee to their merchants based on three factors.The first is a fee to provide terminals in store and online services.The second is an ‘interchange’ which is a fixed rate going from the retailer’s bank to the cardholder’s bank.This is a regulated figure of 0.3 per cent for credit cards and 0.2 per cent for debit cards.The third element is a fee that goes to the card provider for managing the transaction.

For Visa, typically on average across all UK transactions this is less than 0.1 per cent.The total percentage is normally a confidential figure that will vary between companies for the same type of card.’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.’ An Amazon spokesman told MailOnline: ‘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 January 19, 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.

‘With the rapidly changing payments landscape around the world, we will continue innovating on behalf of customers to add and promote faster, cheaper, and more inclusive payment options to our stores across the globe.’ Amazon’s email to customers this week said: ‘We’re writing to notify you of an upcoming change to Amazon.co.uk.’Starting January 19, 2022, we will unfortunately no longer accept Visa credit cards issued in the UK, due to the high fees Visa charges for processing credit card transactions.

‘You can still use debit cards (including Visa debit cards) and non-Visa credit cards like Mastercard, Amex, and Eurocard to make purchases.’Please update your default payment method now, or add one of these new, eligible payment methods if you do not have one.

We’re writing to notify you of an upcoming change to Amazon.co.uk.Starting 19 January, 2022, we will unfortunately no longer accept Visa credit cards issued in the UK, due to the high fees Visa charges for processing credit card transactions.You can still use debit cards (including Visa debit cards) and non-Visa credit cards like Mastercard, Amex, and Eurocard to make purchases.

Please update your default payment method now, or add one of these new, eligible payment methods if you do not have one.You can update your Prime membership here, and if you have any subscriptions on Amazon.co.uk, you can update them on the ”manage your subscription” page here.We know this may be inconvenient, and we’re here to help you through this transition so you can continue enjoying Amazon’s low prices and wide selection.Please visit this help page for more information on payment methods, or go directly to your account.’You can update your Prime membership here, and if you have any subscriptions on Amazon.co.uk, you can update them on the ”manage your subscription” page here.

‘We know this may be inconvenient, and we’re here to help you through this transition so you can continue enjoying Amazon’s low prices and wide selection.’Please visit this help page for more information on payment methods, or go directly to your account.’ Jo Thornhill, money expert at MoneySuperMarket, told MailOnline: ‘Amazon’s announcement that it will stop accepting visa credit cards from January is bad news for consumers as it will reduce choice when it comes to how they pay when making purchases with the online retailer.

‘If this announcement impacts you, we’d recommend you wait to see how this saga plays out over the coming weeks, as it could be the case that Amazon and Visa are able to sort out this situation before any blocks are put in place.’However if, come January, Amazon has stuck to its decision and you like using credit cards for online payments due to the protection they provide you under Section 75 of the Consumer Credit Act, you could always look for a new card to meet your needs.’There are lots of great offers out there, including cards providing interest free purchases for up to 23 months.’ And CNBC technology expert Ryan Browne added: ‘It could be a way to get some bargaining power over Visa to lower fees.’Smaller retailers aren’t in a position to negotiate, but Amazon – given its size – might be.Visa is clearly bruised by this decision, though, and it could damage their relationship in the long run.’.

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