UPDATE: In January 2022, Amazon dropped its plan to stop accepting Visa cards in the UK, according to numerous reports.
Amazon customers with UK-issued Visa credit cards will need to find another way to make their purchases next year.
According to published reports, the online retail giant plans to stop accepting Visa cards issued in the United Kingdom beginning Jan. 19. Amazon said its decision was due to the high fees Visa charges for transactions.
Amazon will still accept Visa debit cards, as well as MasterCard and Amex credit cards, and Eurocard.
We reached out to Amazon, which didn’t immediately respond, but a Visa spokesperson told us via email:
“UK shoppers can use their Visa debit and credit cards at Amazon UK today and throughout the holiday season. We are very disappointed that Amazon is threatening to restrict consumer choice in the future. When consumer choice is limited, nobody wins. 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.”
The news did not go over well with some of Amazon’s customers, who took to Twitter to express their displeasure with the e-commerce heavyweight. Many blamed the United Kingdom’s withdrawal from the European Union last year, known as Brexit.
According to a Forbes report on the Amazon-Visa skirmish, Visa raised one type of credit-card transaction fee five-fold earlier this year in the wake of Brexit, which removed restrictions to the hike.
In September, the British Retail Consortium asked Parliament to take action, accusing card firms of “abusing their dominant market position.”
Amazon’s Visa credit card decision inspired a heavy dose of British sarcasm.
Amazon’s decision to stop accepting Visa credit cards isn’t the first time a merchant has taken drastic action against a payment processor.
In 2018, US supermarket chain Kroger stopped accepting Visa credit cards at its Foods Co. stores in California because of a dispute over fees. The following year, it expanded the Visa credit card ban to its Smith’s Food and Drug stores and fuel stations in seven states.
At the local level, small merchants can be reluctant to accept credit cards of any kind due to the fees payment processors charge.
Could the Amazon-Visa news open the door to other payment methods? One Twitter user saw it as a sign that Amazon is considering cryptocurrencies as a way to reduce its transaction costs.
How do Gen Zers, millennials, and boomers compare when it comes to generational payment methods? New data reveals intriguing insights that can help you provide smarter payment experiences.
While not referencing cryptocurrency, Amazon told Forbes that it would work to add “faster, cheaper, and more inclusive payment options to its stores.”
