Is Brexit to blame for Amazon banning Visa Credit Cards in the UK? Amazon is set to ban Visa Credit Cards in the UK from next year.
Amazon.com Inc has made the controversial decision to ban UK issued Visa credit cards from next year. The decision is said to be due to increasing transaction fees. Brexit has been partially blamed for this as fees have risen since the UK left the EU.
A spokesperson for Amazon commented: “the cost of accepting card payments continues to be an obstacle for businesses striving to provide the best prices for customers.”
Amazon customers were notified that the changes will come into force from January 19, 2022. High transaction fees mean that Amazon: “will no longer accept Visa credit cards issued in the U.K.”
Amazon customers with Visa cards that were issued outside of the UK will be okay though as well customers using Visa debit cards, MasterCard Inc. and American Express Co. credit cards. Amazon is already hitting users with a surcharge in Australia and Singapore to use Visa credit cards.
Visa are not impressed with the decision to ban their credit cards. A spokesperson for Visa commented: “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.”
Since Brexit, the cap on transactions fees between the UK and the European Economic Area has been ditched, which has meant that fees have increased. When customers purchase products on Amazon UK, Amazon still processes the payments in the EU. This means high “cross-border” fees are applied.
Andrew Cregan is the payments policy adviser at the British Retail Consortium. Cregan commented: “Card payments accounted for over four-fifths of U.K. retail spending in 2020, with just two firms facilitating 98% of these payments,”
“Ultimately, it will be consumers who suffer higher prices unless these spiraling costs can be brought to heel.”
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