Amazon to stop accepting Visa payments

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Amazon will stop accepting payments made through Visa credit cards issued in the UK, according to Bloomberg.

The change will come into play from 19 January next year.

Customers who use Visa credit and debit cards and Mastercard and Amex credit cards will still be able to pay with them on the Amazon site so long as they are issued outside of the UK.

Some Amazon customers received the notification from the ecommerce giant this week after making a purchase with their Visa card.

The change is the result of high fees charged by the card issuer when processing card transactions, Amazon said.

“We are very disappointed that Amazon is threatening to restrict consumer choice in the future,” a Visa spokesperson commented.

“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.”

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Amazon responded by saying: “The cost of accepting card payments continues to be an obstacle for businesses striving to provide the best prices for customers.

“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 January 19 2022.

“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.”

The news comes after Amazon confirmed its customers would be able to checkout with Venmo last week.

The new partnership will allow Venmo’s more than 80 million users in the US to use the service for purchases on Amazon’s website and via its mobile shopping app in 2022.

The news comes as a recent Venmo behaviour study revealed that 65 per cent of Venmo users said they increased their online purchasing behaviours during the pandemic, while 47 per cent are interested in paying with Venmo when checking out with merchants.

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