Amazon will stop accepting Visa credit cards issued in the UK from January 19 next year.
In an email sent to UK customers, which many thought at first as a hoax (myself included), Amazon explains that:
“As of January 19, 2022, we will unfortunately no longer accept Visa credit cards issued in the UK, due to the high fees that Visa charges for processing credit card transactions. You can still use credit cards. debit (including Visa debit cards) and non-Visa credit cards like Mastercard, Amex and Eurocard for making purchases. Please update your default payment method now, or add one of these new payment methods. eligible payment if you do not have one. “
This decision will certainly frustrate customers who depend on a Visa credit card to pay for their orders, and switching to another type of card is never easy. It is certainly not a task that anyone would choose to perform during the vacation period.
As the BBC reports, Visa is obviously not happy with the decision, a spokesperson saying:
“We are very disappointed that Amazon threatens to restrict consumer choice in the future. When consumer choice is limited, no one wins … We have a long-standing relationship with Amazon, and we continue to work on it. a resolution, so our cardholders can use their preferred Visa credit cards on Amazon UK without restrictions imposed by Amazon from January 2022. ”
Amazon says “the cost of accepting card payments continues to be a barrier for businesses striving to offer customers the best prices” and technology is expected to allow the cost of digital transactions to gradually drop, “But instead they continue to stay high or even rise.”
As Amazon has already made the decision to remove card support, it seems the only way Visa can stop it is to agree to lower its purchase fees on Amazon. If so, other retailers will undoubtedly ask for the same and therefore it is unlikely to happen.