By Chris King • 18 February 2022 • 0:53
Amazon and Visa agree deal to accept credit cards.
image: creative commons
A global deal has finally been reached between online giant Amazon, and credit card company Visa. Amazon will now accept credit card payments from Visa card users.
Last year, due to the fees that Visa was charging to process credit card payments for online purchases, Amazon had threatened to stop accepting their cards.
Customers in Australia and Singapore had also been hit with surcharges when using Visa to pay for goods on Amazon. From Thursday, February 17, Visa will remove this surcharge in those countries.
While negotiations were ongoing, Amazon had already lifted the ban on using Visa cards from the UK for payment.
“We’ve recently reached a global agreement with Visa that allows all customers to continue using their Visa credit cards in our stores”, said a statement from Amazon.
“This agreement includes the acceptance of Visa at all Amazon stores and sites today, as well as a joint commitment to collaboration on new product and technology initiatives to ensure innovative payment experiences for our customers in the future”, Visa said in response.
The cost of processing Visa card payments was labelled ‘an obstacle’ to providing their customers with the best possible prices by Amazon last year when they started to consider banning these cards.
Following Brexit, a cap on credit card fees that was in place by the EU, was no longer applicable in the UK. Last October, Visa had started to charge credit card holders 1.5 per cent of any online transaction fee made between the UK and the EU. Previously, it had been 0.3 per cent.
The charges were said to not apply to Visa debit cards though. But, according to the UK Treasury Committee, both Visa, and Mastercard, had increased the cost of processing debit card payments from 0.2 per cent to 1.15 per cent.
“When consumer choice is limited, nobody wins”, Visa said of Amazon at the time, accusing them of restricting customer choice. Meanwhile, a review of credit card fees, carried out by the Payment Systems Regulator, revealed that they had “increased significantly in recent months”, and this is currently under investigation, as reported by bbc.com.
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Originally from Wales, Chris spent years on the Costa del Sol before moving to the Algarve where he is a web reporter for The Euro Weekly News covering international and Spanish national news.
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