Amazon said it would stop accepting Visa credit cards issues in the U.K. starting Jan. 19, 2022. The company blamed Visa's high credit-card transaction fees for the change.
"The cost of accepting card payments continues to be an obstacle for businesses striving to provide the best prices for customers," an Amazon spokesperson told TechCrunch. "These costs should be going down over time with technological advancements, but instead they continue to stay high or even rise."
Consumers will have to switch to a Visa debit card or a credit card operating on the Mastercard, American Express or Eurocard networks post-January. A Visa spokesperson told TechCrunch it was disappointed "Amazon is threatening to restrict consumer choice in the future" and "when consumer choice is limited, nobody wins." The credit card company said it's working toward reaching an agreement with Amazon to roll back the change.
Amazon responded to confused consumers on Twitter on Wednesday, some of who expressed annoyance and pinned the change on Brexit. Previously, European Union law capped Visa's transaction fees between the U.K. and the EU at 0.3%. When the U.K. left the EU, Visa was able to increase the fee to 1.5%. Mastercard did the same. Both Amazon and Visa told the BBC the fee changes had nothing to do with Brexit.
http://Amazon.co.uk\u00a0 will continue accepting Visa debit cards, and any Visa credit card issued outside of the UK. Only Visa credit cards issued in the UK will no longer be accepted. For accepted payment methods please visit https://amzn.to/3pRWWcZ\u00a0. -Christyn— Amazon Help (@Amazon Help) 1637140628
Other retailers have sparred with credit card networks as well. Walmart sued Visa over card fees in 2014 and blocked Visa from some of its Canadian stores in 2016.