AMAZON will block payments made using Visa credit cards in the UK from next year, affecting millions of customers.
The retail giant emailed customers to confirm it will stop accepting payments made using Visa credit cards issued in the UK “starting January 19 2022”.Visa credit card customers won’t be able to shop with Amazon next year[/caption]
Amazon cited “the high fees Visa charges for processing credit card transactions” as the reason for the decision.
Shoppers will still be able to use Visa debit cards and credit cards issued by other payment firms.
In March it was reported that Visa was planning to hike fees for purchases ordered in the UK from Europe.
The interchange fee for online credit card payments jumped to 1.5% – up five times from the previous 0.3% rate.
The fee increase was sparked by the UK leaving the European Union and followed similar action from rival Mastercard.
An Amazon spokesperson said: “The cost of accepting card payments continues to be an obstacle for businesses striving to provide the best prices for customers.
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“These costs should be going down over time with technological advancements, but instead they continue to stay high or even rise.
“As a result of Visa’s continued high cost of payments, we regret that Amazon.co.uk will no longer accept UK-issued Visa credit cards as of 19 January, 2022.
“Customers can continue to use all debit cards (including Visa debit cards) and other non-Visa credit cards to shop on Amazon.co.uk.
“With the rapidly changing payments landscape around the world, we will continue innovating on behalf of customers to add and promote faster, cheaper, and more inclusive payment options to our stores across the globe.”
Visa said it is “disappointed” in Amazon’s decision, adding that it will try and come to a resolution to avoid the ban.
A spokesperson said: “We have a long-standing relationship with Amazon, and we continue to work toward a resolution, so our cardholders can use their preferred Visa credit cards at Amazon UK without Amazon-imposed restrictions come January 2022.”
What should I do if I use my Visa credit card to shop on Amazon?
If you currently use a Visa credit card to shop on Amazon, your payments will be unaffected until January 19 2022.
But Amazon customers with a Visa credit card should update their default payment method before the cut off date.
If you don’t update it, you could find that your Prime membership or any subscriptions you have could be cancelled or paused.
You can change your details on the “manage your subscription” page in your Amazon account.
From January, you can still use debit cards – including Visa debit cards – and non-Visa credit cards like Mastercard, Amex, and Eurocard to make purchases.
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