Amazon.com Inc. said it would stop accepting Visa Inc. credit cards that have been issued in the U.K. because of high charges by Visa, in a spat highlighting ongoing tensions between retailers and payment processors over fees.
Amazon told customers it won’t take credit cards issued by Visa in the U.K. as of Jan. 19, “due to the high fees Visa charges for processing credit card transactions.” A spokesman said card payment costs keep customers from getting better prices and that those costs shouldn’t be staying high or rising even as technology improves.
The U.K. action continues a yearslong wrangle between businesses and credit card companies over the fees that credit card companies charge to process customer payments. Amazon is among large merchants that have sued Visa and other credit card providers and banks over such fees, which they say are unfairly set and raise prices for consumers. Card networks such as Visa and Mastercard Inc. set the interchange fees that businesses pay to credit-card issuers when consumers use credit cards.
Visa said it is trying to resolve the situation so that customers could keep using their credit cards after the January deadline without Amazon-imposed restrictions. It said it was disappointed that customer choice was under threat.
Amazon is offering some affected customers 20 British pounds, equivalent to $26.86, off a purchase to encourage them to update their payment method to another type of credit card or a Visa debit card.
Amazon has a branded Visa card via JPMorgan Chase & Co. giving Amazon Prime members cash back on purchases. The card is one of the most widely used co-branded credit cards in the U.S., according to a July 2021 report by Packaged Facts, beating out airline and hotel-branded credit cards.
This story has been published from a wire agency feed without modifications to the text
Subscribe to Mint Newsletters * Enter a valid email * Thank you for subscribing to our newsletter.
Never miss a story! Stay connected and informed with Mint.
our App Now!!