Key Sentence:
- Amazon will stop accepting Visa credit cards in the UK from January 19; the online retail giant has informed its customers.
Visa said it was “deeply disappointed that Amazon is threatening to limit consumer choice in the future.” Amazon says, “The cost of accepting card payments continues to be a barrier for businesses looking to offer their customers the best prices.” Online retailers say costs will decrease overtime as technology advances, “but otherwise will remain high or even increase.”
An Amazon spokeswoman said the dispute included Visa’s “pretty impressive” price hikes over several years with no added value to its services. Visa tell in a statement that it is “deeply disappointing that Amazon threatens to limit consumer choice in the future. When consumer choice is limited, no one wins.”
It says it has a “longstanding relationship with Amazon” and is trying to resolve the situation so customers can use Visa credit cards with Amazon UK. Amazon didn’t want to say how much Visa would charge merchants for processing credit card transactions. Visa also declined to comment, although it claims that it takes, on average, less than 0.1% of the purchase value.
Amazon and Visa have stated that any change in fees has nothing to do with Brexit.
Both Visa and rival Mastercard have increased what is known as cross-border transaction fees between companies in the UK also the European Union since Brexit.
The dispute between Amazon and Visa relates to fees charged by credit card company Amazon for its services in the UK. Analyzer box from Kevin Peachy, the personal finance correspondent. The dispute between these two giant companies is now happening in front of their customers.
Amazon says visa fees are excessive and are a barrier to low prices for consumers. Visa says the costs are competitive, have minimal impact on pricing, and no one wins if options are limited.
Whether these lines are for taxis or just smoke curtains are mainly irrelevant to users of these services. They know that they may need to change their payment method on Amazon. However, time is of the essence. These messages to customers become even louder when people regularly use Amazon for Christmas shopping. But it also means there is still until January 19 to reach a compromise.