Amazon has announced it is “working closely with Visa on a potential solution,” which would mean that it reverses its decision to stop accepting Visa payments.
The move had been planned for later this week and would affect thousands of businesses in the UK.
“The expected change regarding the use of Visa credit cards on will no longer take place on January 19. We are working closely with Visa on a potential solution that will enable customers to continue using their Visa credit cards on Amazon,” the ecommerce company announced.
“Should we make any changes related to Visa credit cards, we will give you advance notice.”
“These costs should be going down over time with technological advancements, but instead they continue to stay high or even rise,” the ecommerce behemoth said after the initial announcement.
Visa hit back with a spokesperson saying: “We are very disappointed that Amazon is threatening to restrict consumer choice in the future,” back in November.
“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.”
Twitter user @neil_levett said: “For once I actually support Amazon on this. It’s an issue that affects small businesses too.”
Another added: “Have they now realised that Visa is all most people in the UK have got?”
GoCardless director of product marketing Siamac Rezaiezadeh said: “While the news that Amazon and Visa are working to find a resolution is positive for customers who may have been impacted, it shouldn’t take away from the bigger conversation: businesses are pushing back against the draconian terms and high fees that are levied just for the privilege of taking a payment.
“The uprising has well and truly begun, with AllSaints, Superdry, and Levi’s just some of the other brands also taking the fight to the card networks, this time through legal action.
“Merchants of all sizes now have access to plenty of alternative payment options, many of which are popular with consumers. So is it time we see the sun set on cards?
Thanks to innovations like open banking, payments can instantly move from one account to another, offering all the benefits of cards — and more — while removing the pain points, such as the costs created by the myriad of intermediaries in each transaction.
“As adoption increases for these digital-first payment options, we expect to see an end to ‘card on file’ and the rise of ‘account on file’ instead.”