Amazon U-turns on decision to ban UK-issued Visa credit cards – FinTech Futures

Amazon has made a last-minute U-turn over its decision to stop accepting Visa credit cards issued in the UK.

Amazon says it is “working closely” with Visa

The plan to remove Visa credit cards as a viable payment method on the site was due to come into effect on 19 January 2022.

But in an e-mail to customers 48 hours before the deadline, the e-commerce giant says the move will “no longer take place on January 19” and that it is “working closely with Visa on a potential solution” that will mean customers can continue to pay on the site using their Visa credit card.

Visa says it is working closely with Amazon “to reach an agreement”.

Amazon adds that customers will be given “advance notice” of any changes. “Until then, you can continue to use Visa credit cards, debit cards, Mastercard, American Express, and Eurocard as you do today.”

The dispute between the two household names originates with Brexit. In the UK, an EU-enforced cap on fees charged by card issuers is no longer in place and both Visa and Mastercard have increased some fees as a result.

The original decision was announced by Amazon in November. A spokesperson for the retail behemoth said: “As a result of Visa’s continued high cost of payments, we regret that will no longer accept UK-issued Visa credit cards as of 19 January 2022.”

A Visa spokesperson said in a statement at the time the payments giant was “very disappointed” that Amazon was “threatening to restrict consumer choice”.

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