You are here: Home - Credit Cards & Loans - News -

Amazon U-turn on Visa card ban

0
Written by: Emma Lunn
17/02/2022
The online giant has permanently scrapped plans to ban payments by UK-issued Visa credit cards after reaching a worldwide agreement with Visa.

The move brings the long-running dispute to a conclusion which means Amazon customers in the UK can continue to pay by Visa credit card indefinitely.

Amazon announced the Visa credit card ban in November and blamed the high cost of processing payments for the decision. Online card payments attract a range of fees including interchange fees and other transaction charges.

At the time customers were sent an email saying: “Starting 19 January 2022, we will unfortunately no longer accept Visa credit cards issued in the UK, due to the high fees Visa charges for processing credit card transactions.”

But Amazon suspended the ban at the last minute on 17 January saying it was still negotiating with Visa.

The two companies have now announced they have reached a ‘global agreement’ on the issue. The new agreement sees Amazon’s threat to block Visa credit card payments on its UK store dropped, while the surcharge applied to the use of Visa credit cards on Amazon’s Australian and Singaporean sites will be lifted from today.

A Visa spokesperson said: “Visa is pleased to have reached a broad, global agreement with Amazon. This agreement includes the acceptance of Visa at all Amazon stores and sites today, as well as a joint commitment to collaboration on new product and technology initiatives to ensure innovative payment experiences for our customers in the future.”

An Amazon spokesperson said: “We’ve recently reached a global agreement with Visa that allows all customers to continue using their Visa credit cards in our stores. Amazon remains committed to offering customers a payment experience that is convenient and offers choice.”

Ele Clark, senior editor at Which? Money, said: “It is welcome news that Amazon and Visa have agreed a deal for Amazon to continue accepting Visa credit cards.

“Using a credit card to pay offers shoppers valuable legal protections that debit cards can’t, and removing this option for Visa cardholders would have meant fewer rights for millions of consumers.

“However, there have been long-standing concerns about credit card fees, and this affects both customers and businesses. The regulator must urgently take forward its proposals to examine whether card fees are fair and what impact this will have on competition.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week