Amazon and Visa reach agreement over fee dispute

Amazon and Visa have finally reached an agreement over the well-documented dispute involving payment fees.

Visa cards will be continued to be accepted at all stores and bricks-and-mortar locations as part of a global agreement between the two companies.

The dispute started last November when Amazon announced it would stop accepting Visa credit cards issued in the UK because of the high transaction fees which were being charged by the payment processing giant.

“We’ve recently reached a global agreement with Visa that allows all customers to continue using their Visa credit cards in our stores,” an Amazon spokesperson said in an email to Reuters on Thursday.

Last month, Amazon reversed its decision at the very last moment and said that it was “working closely with Visa on a potential solution.”

READ MORE: Amazon reverses decision to stop accepting Visa payments

“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 giant announced at the time.

A Visa spokesperson told Reuters: “Visa is pleased to have reached a broad, global agreement with Amazon. This agreement includes the acceptance of Visa at all Amazon stores and sites today, as well as a joint commitment to collaboration on new product and technology initiatives to ensure innovative payment experiences for our customers in the future.

British lawmakers announced last month that they planned to scrutinise the increase in the fees that Mastercard and Visa charge businesses after the country’s payments regulator found no evidence to justify the rises.

FinnCap Cavendish director and head of financial Services Ben Goldring told Charged: “While the agreement which allows consumers to continue using their Visa card for Amazon purchases is unsurprising, I think it will be interesting to see how Amazon prioritises different payment options for consumers in 2022.

“I expect Amazon may privilege alternative payment rails which either provide enhanced SKU-level data and reactivation potential (BNPLs) or lower cost and chargeback rations (open banking payment providers).”

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