Starting on January 19th, 2022, the e-commerce giant Amazon will stop accepting Visa credit cards issued in the UK.
Amazon notified its UK customers via mail that it will unfortunately no longer accept any Visa credit cards issued in the UK, due to the high fees Visa charges for processing credit card transactions. The customers can still use debit cards (including Visa debit cards) and non-Visa credit cards like Mastercard, Amex, and Eurocard to make purchases.
In the United Kingdom, Amazon has a consumer credit card agreement with Mastercard and a business card collaboration with AMEX.
“The cost of accepting card payments continues to be an obstacle for businesses striving to provide the best prices for customers,”said Amazon’s spokesperson.
“We are very disappointed that Amazon is threatening to restrict consumer choice in the future. When consumer choice is limited, nobody wins,” a Visa spokesman said in an email. “We have a long-standing relationship with Amazon, and we continue to work toward a resolution.”
Amazon has already implemented a surcharge for people who pay with Visa credit cards in Singapore and Australia.
At 9:36 a.m. in New York, Visa shares were down 5.2 percent to $203.96. They’ve lost 6.6 percent this year, versus a 29 percent gain for the S&P 500 Information Technology Index.
However as a concession, Amazon UK has offered £20 off on next purchase the first time users set any debit or non-Visa credit card as default.