Amazon Will Stop Accepting Payments Through Visa Credit Cards In UK
Online Retail Firm Would Stop All Transactions Made with Credits Cards of Visa from January 19 Next Year
The online retail firm Amazon has recently made a public announcement in which they have clarified that the e-commerce company would soon stop the acceptance of payments from Visa credit cards that have been issued in the United Kingdom from January 19. Amazon said that this recent move had been finalized due to high transaction fees on credit cards, although the Visa debit cards would still be acceptable by the firm.
According to Visa, this move regarding the suspension of transactions through Visa credit cards is a very disappointing step that has been taken by Amazon and is threatening to make restrictions on the choices of customers in the upcoming future.
Amazon replied that the cost that comes from accepting payments from cards continues to be a massive obstacle for multiple businesses that are striving their best to provide the best possible prices to their customers. They further added that the cost for transactions made through Visa credit cards should be reduced over the course of time due to increasing advancements in technologies, but instead, it keeps on getting higher.
A spokesperson for Amazon said that the dispute is in direct relation to pretty egregious prices that are rising from Visa over the past several years with no amount of additional value-added to its provided services.
In a recent statement, Visa said that they have become very disappointed that such an online retail giant is threatening to take restrictive measures in the customer choice in the future. When the choices of customers are limited, nobody will win from this situation. Visa also stated that they had a long-standing relationship with Amazon and said that they are currently trying to resolve this condition so the customers would be able to make transactions from their Visa credit cards with Amazon in the United Kingdom.
It has later been declined by Amazon to give information regarding the charges that are made by Visa for Amazon to process for the transactions that are made through Visa credit cards. Visa has also declined the request to comment, although they claim that on the average amount, it requires less than 0.1% of the purchase value.
Decreased customer choice
It has been clarified by both firms that the changes in the Visa credit card fees do not have any relation with Brexit. However, both Mastercard and Visa have made certain increases in the so-called interchange fee on the transactions that are made across borders among businesses in the United Kingdom and the European Union following the Brexit deal.
The dispute that has recently surfaced between Visa and Amazon is to do with the credit card firm and their fee charges that have been placed on services provided by Amazon across the United Kingdom.
The senior personal finance edition, James Andrews, said on his website that the move regarding the suspension of transactions made by Visa credit card on Amazon UK would come as a major blow to millions of residents of Britain, as they use their credit card service by Visa, which also includes customers of HSBC and Barclaycard.
He further added that American Express has also been rejected by multiple retailers across the United Kingdom, which means that people are currently looking for rewards that come on their expenditure or trying to reduce the cost for shopping that comes with a 0% purchase card on Amazon will be then forced to choose another card from Visa’s rival firm Mastercard.
He said that the rewards card which is being offered by Amazon is actually powered by Mastercard.
A recent tweet has been posted by Steve Dresser, the retail analyst, that Amazon could possibly be aiming to bring the fees down with this recent move with Visa credit card. According to the Federation of Small Businesses (FSB), the Visa credit card fees that are also charged by some other card providers also have a dominancy over the space of cashless payments, which have soared in the past recent few years.
The natural chairman of FSB, Mike Cherry, said that the numerous small businesses have always suffered as they are charged more fees for the card terminals in comparison with big cooperates, so when the online firms start to throw the gauntlet, it can be understood that the overall situation is gradually becoming critical.