Amazon, the world’s largest online retailer, has declared that as of January 19, 2022, it would no longer accept Visa credit cards issued in the United Kingdom.
In an email to its UK customers, the company announced that it will no longer take certain cards due to the excessive expenses associated with credit card transactions.
Despite the fact that the email has been misinterpreted as Amazon intensifying its struggle with Visa in order to gain better terms, the firm claims it is committed to providing better services to its customers.
A spokesperson from the ecommerce company said in regards to the matter “The cost of accepting card payments continues to be an obstacle for businesses striving to provide the best prices for customers,” .
However, all Visa debit cards, MasterCard credit cards, American Express credit cards, and Visa credit cards issued in countries other than the United Kingdom will be accepted. Customers can also have a direct debit account set up for them.
Amazon has been exerting pressure on credit card providers in recent months, particularly in the UK, due to an increase in interchange fees.
Credit card interchange fees are capped at 0.3 percent under EU regulations. As a result of Brexit, the UK no longer has access to that cap. Customers in the United Kingdom are charged a 1.5 percent fee by Making Visa.
It’s the first case whereby the ecommerce store had to take action against Visa; somtime in September Amazon also obtrude an extra payment of money in addition to the usual payment on Visa credit cards in Singapore which is still in effect.
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