Rezaiezadeh has described the move as the “moment retailers decided they’ve had enough of being stung by the high fees charged by the card industry, simply for the privilege of collecting a payment.”
UK consumers will still be able to use their Visa cards to checkout on the ecommerce giant’s site until January 19 2022.
The surprising news that Amazon was stopping accepting Visa credit cards from purchases conducted in the UK could prompt other retailers to follow suit, Rezaiezadeh believes.
“This move will prompt other merchants to explore alternative payment options and represents a tailwind for the adoption of newer methods, such as account-to-account (A2A) payments,” he said.
“Not only do these reduce the cost for businesses through removing the now-redundant intermediaries in each card transaction – they also make it easier, quicker and more secure to pay for consumers, thanks to other innovations like open banking.
“Amazon’s announcement shows that major brands are ready to fight back against the monopoly of card networks who have long had the power to set and raise fees.
“It continues the move away from pieces of plastic introduced in the pre-internet world to payment methods built for a digital society.”
Visa responded to the news by saying: “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.”
Amazon however hit back with a statement that read: “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.”