Amazon UK to Stop Accepting Visa Credit Cards

Amazon and Visa Dispute: UK Credit Card Restrictions

A significant escalation in the ongoing dispute between Amazon and Visa has occurred. Beginning January 19th, 2022, Amazon will cease accepting Visa credit cards originating from the United Kingdom.

Customers of Amazon UK were informed of this alteration via email. The stated reason for this decision centers around the elevated transaction fees levied by Visa for credit card processing.

Continued Access During the Holiday Season

Despite this change, Visa credit card holders will retain the ability to utilize their cards for purchases throughout the holiday period. However, following January 19th, 2022, alternative payment methods will be required.

These alternatives include utilizing a Visa debit card, or switching to credit cards issued by Mastercard or American Express (AMEX).

Statements from Both Companies

According to a statement released by an Amazon representative, the company is addressing the increasing costs associated with Visa transactions.

Conversely, a Visa spokesperson expressed disappointment regarding Amazon’s decision to potentially limit consumer payment options. They asserted that restricting consumer choice ultimately benefits no one.

Visa further indicated their commitment to reaching a resolution with Amazon, aiming to ensure UK-issued Visa credit cards remain usable on the platform without imposed restrictions come January 2022.

Existing Partnerships

It is noteworthy that Amazon maintains strong relationships with other credit card networks. Currently, Amazon has a consumer credit card partnership with Mastercard and a business card partnership with AMEX within the UK.

A Public Negotiation Tactic?

The current public disagreement may represent a strategic maneuver by both companies to secure more favorable terms from one another.

Over recent months, Amazon has been actively applying pressure to Visa. This began with the implementation of a 0.5 percent surcharge on Visa credit card purchases on its Singapore website on September 15th.

Surcharges in Australia and Incentives

Subsequently, Amazon introduced a similar surcharge on Visa transactions in Australia approximately a month and a half later.

In both instances, Amazon incentivized customers to adopt alternative payment methods by offering gift cards – AU$20 in Australia and SG$30 in Singapore – upon adding a non-Visa credit card.