Amazon has announced that as of January 19 next year it will no longer accept Visa credit card payments. On a note, the company confirmed that the decision came as a result of the increase in fees that Visa charges merchants who accept payments with their credit cards.
The exchange fee on transactions between the UK and the EU was limited to 0.3% under EU law. With the UK leaving the European Union, Visa has been able to review these commissions and start charging a fee of 1.5% on every transaction.
The cost of accepting credit card payments continues to be an obstacle for companies striving to bring consumers the best rates. These costs should decrease over time and with technological development, but instead continue to rise or even rise,” Amazon confirms, citing The Verge.
A spokesperson for Visa has already responded to the decision on BBC News, acknowledging that the company is deeply disappointed that Amazon threatens to restrict consumer choice. “When consumer choice is limited, no one wins.”
Visa also took the opportunity to highlight that, throughout the Christmas period, customers can still pay with their credit cards, also ensuring that they continue to work to resolve the issue.
After January 19, Amazon UK customers will continue to pay with Visa debit cards and credit cards from other brands such as Mastercard, which even before Visa also increased fees charged for processing payments on your credit cards. What needs to be clarified are the differences in the two companies’ policies that justify banning one payment system over the other.
Information published by Bloomberg ensures that Visa differentiates prices for various sectors. Commissions in e-commerce have increased. In areas such as education or real estate, I underestimated them, a distinction that may have contributed to the decision.
“Writer. Analyst. Avid travel maven. Devoted twitter guru. Unapologetic pop culture expert. General zombie enthusiast.”