Amazon has announced that it would no longer accept Visa credit cards issued in the United Kingdom as of January 19, 2019.
It stated that the move was necessary owing to high credit card transaction costs, but that Visa debit cards will continue to be accepted.
Visa stated that it is “very unhappy” that Amazon is threatening to limit customer choice in the future.
Expenses should be decreasing over time owing to technological developments, yet they “remain high or even climb.”
According to an Amazon spokesman, the disagreement stems from Visa’s “quite outrageous” pricing increases over a number of years with no new value to its service.
Amazon is paying £20 to Prime members who move from using Visa to another payment method, and £10 to non-Prime members who use a Visa card as their primary or sole payment option on their account.
In a statement, Visa said it was “extremely concerned that Amazon is threatening to restrict customer choice in the future since when consumer choice is limited, nobody wins.”
It stated that it has a “long-standing partnership with Amazon” and that it is working to rectify the matter so that consumers may use Visa credit cards with Amazon UK.
Amazon refuses to divulge how much Visa costs the store to handle credit card transactions.
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