topic Re: Amazon & Visa reach a deal in Credit in the News

Amazon UK vs Visa + Amazon in Talks to Switch Co-Brand Card to Mastercard From Visa

Anonymous — Thu, 18 Nov 2021 09:37:12 GMT

Amazon UK just announced that starting 19 Jan 2022 they will no longer accept UK-issued Visa credit cards, in a dispute over transaction fees.

Amazon says that while technology should cause costs to decrease, Visa has kept them high or even increased. Neither side is being specific, but Visa says that they take less than 0.1% of the average transaction. (I doubt that is the total fee, maybe just the bit Visa itself takes, but if true doesn't leave a whole lot of opportunity for a major reduction).

Some reports suggest that there will be a resolution before the cut off date, as it is too important for both sides.

Amazon to stop accepting Visa credit cards in UK - BBC News

Amazon to stop accepting UK-issued Visa credit cards | Amazon | The Guardian

Email:

Dear LTL Daughter,

We’re writing to notify you of an upcoming change to Amazon.co.uk.

Starting 19 January, 2022, we will unfortunately no longer accept Visa credit cards issued in the UK, due to the high fees Visa charges for processing credit card transactions. You can still use debit cards (including Visa debit cards) and non-Visa credit cards like Mastercard, Amex, and Eurocard to make purchases. Please update your default payment method now, or add one of these new, eligible payment methods if you do not have one.

You can update your Prime membership here, and if you have any subscriptions on Amazon.co.uk, you can update them on the ''manage your subscription'' page here.

We know this may be inconvenient, and we’re here to help you through this transition so you can continue enjoying Amazon’s low prices and wide selection. Please visit this help page for more information on payment methods, or go directly to your account.

Re: Amazon UK vs Visa

simplynoir — Wed, 17 Nov 2021 13:19:33 GMT

I didn't even realize region/country-specific credit card rates existed. Had assumed the rate for a Visa Signature/Infinite for example was the same no matter where you live and/or used the card

Re: Amazon UK vs Visa

coldfusion — Wed, 17 Nov 2021 13:24:43 GMT

I saw this a couple of hours ago. As I understand it the basis of the dispute is tied to Visa planning to implement a large jump in interchange fees in January, much like Mastercard already did earlier this year, since the agreement with EU members to keep a cap in place no longer applies to the UK.

As I also understand it Visa's 0.1% comment is technically accurate, but the amount of the increase for both Visa and Mastercard is somewhere in the 300-500% range which is what triggered Amazon to play the Chicken game.

Re: Amazon UK vs Visa

Remedios — Wed, 17 Nov 2021 13:30:04 GMT

Poor Amazon, how will they ever manage!

In other news, next *almost space* flight postponed by 3 minutes due to lack of funds

Re: Amazon UK vs Visa

Remedios — Wed, 17 Nov 2021 13:34:59 GMT

Original post edited to add news article, otherwise Smorg (not that it's a bad thing).

@Anonymous if you wish to cite a different source, feel free to edit link

Re: Amazon UK vs Visa

Anonymous — Wed, 17 Nov 2021 16:05:54 GMT

@Remedios wrote:
Original post edited to add news article, otherwise Smorg (not that it's a bad thing).
@Anonymous if you wish to cite a different source, feel free to edit link

Thanks, added a BBC link in addition to Guardian, plus the actual email.

BBC article doesn't specify that it is only UK issued Visa cards, but also has exciting stuff about 20GBP offer which I haven't seen on my account (I pay from prime with a US card, so probably why)

Re: Amazon UK vs Visa

Anonymous — Wed, 17 Nov 2021 19:19:45 GMT

@simplynoir wrote:
I didn't even realize region/country-specific credit card rates existed. Had assumed the rate for a Visa Signature/Infinite for example was the same no matter where you live and/or used the card

This is the reason why US rewards are often much better than those elsewhere, because the issuers can command higher swipe fees.

A card in the UK will often give 1 point for every 2 pounds spent (so 0.5%).

Re: Amazon UK vs Visa

simplynoir — Wed, 17 Nov 2021 19:33:48 GMT

@Anonymous wrote:
@simplynoir wrote:
I didn't even realize region/country-specific credit card rates existed. Had assumed the rate for a Visa Signature/Infinite for example was the same no matter where you live and/or used the card
This is the reason why US rewards are often much better than those elsewhere, because the issuers can command higher swipe fees.
A card in the UK will often give 1 point for every 2 pounds spent (so 0.5%).

Re: Amazon UK vs Visa

Adkins — Wed, 17 Nov 2021 20:05:55 GMT

I was wondering when some of the fall out of Brexit was going to impact the credit card industry. The UK has lost it's bargaining power, imo. This isn't going to hurt Amazon much, I don't think. If people want their items they'll use a different card is all. 🤷

Re: Amazon UK vs Visa

Anonymous — Wed, 17 Nov 2021 20:24:29 GMT

hi,

@Remedios wrote:
Original post edited to add news article, otherwise Smorg (not that it's a bad thing).
@Anonymous if you wish to cite a different source, feel free to edit link

where the original post was made?

Re: Amazon UK vs Visa

Remedios — Wed, 17 Nov 2021 20:31:55 GMT

@Anonymous wrote:
hi,
@Remedios wrote:
Original post edited to add news article, otherwise Smorg (not that it's a bad thing).
@Anonymous if you wish to cite a different source, feel free to edit link

where the original post was made?

Original post is the one thread starts with, so that would be the first one.

Amazon in Talks to Switch Co-Brand Card to Mastercard From Visa

Anonymous — Thu, 18 Nov 2021 02:09:25 GMT

Amazon in Talks to Switch Co-Brand Card to Mastercard From Visa

Amazon.com Inc. is considering shifting its popular co-brand credit card to Mastercard Inc. amid simmering tensions with Visa Inc., a feud that already prompted the retailer to ban the payment giant’s cards in the U.K. starting next year.

https://www.bloomberg.com/news/articles/2021-11-17/amazon-brings-visa-feud-to-u-s-with-mastercard-defection-threat?srnd=premium

This is an escalation on the previous Amazon / Visa feud with UK fees.

Re: Amazon in Talks to Switch Co-Brand Card to Mastercard From Visa

simplynoir — Thu, 18 Nov 2021 03:37:17 GMT

I have no dog in this race but I find it hilarious that Visa is upset about a possible network change when they did this to AMEX when the Costco contract was up for grabs like the article pointed out. First world problems at its finest

Re: Amazon in Talks to Switch Co-Brand Card to Mastercard From Visa

Adkins — Thu, 18 Nov 2021 04:17:29 GMT

@simplynoir wrote:
I have no dog in this race but I find it hilarious that Visa is upset about a possible network change when they did this to AMEX when the Costco contract was up for grabs like the article pointed out. First world problems at its finest

^This.

Re: Amazon in Talks to Switch Co-Brand Card to Mastercard From Visa

Anonymous — Thu, 18 Nov 2021 12:15:49 GMT

@Anonymous wrote:
Amazon in Talks to Switch Co-Brand Card to Mastercard From Visa
Amazon.com Inc. is considering shifting its popular co-brand credit card to Mastercard Inc. amid simmering tensions with Visa Inc., a feud that already prompted the retailer to ban the payment giant’s cards in the U.K. starting next year.

https://www.bloomberg.com/news/articles/2021-11-17/amazon-brings-visa-feud-to-u-s-with-mastercard-defection-threat?srnd=premium

This is an escalation on the previous Amazon / Visa feud with UK fees.

I wonder if (assuming it's not just a bargaining position) this would be part of the rumoured switch from Chase as well as from Visa

Re: Amazon in Talks to Switch Co-Brand Card to Mastercard From Visa

ChargedUp — Sat, 20 Nov 2021 03:13:04 GMT

While Costco shoppers can still use cash or check at it's checkstands, Amazon is solely dependent on electronic payment venues. Blocking out one of the largest networks in the world seems quite counter-intuitive.

I get the frustration of paying "card not present" fees when a company has taken steps to keep fraud issues at such a low level, but ending Visa acceptance seems like it will cost Amazon much more than it will Visa, even if just in the UK. Going the Costco route and making a deal with Visa for sole acceptance would likely be even more costly in the long run.

Changing the co-branded Amazon Visa to MC (or even Amex or Discover) could bring Visa to the bargaining table (I have no idea how many Amazon Visa's from Chase are floating around out there, but I'm fairly certain it's in the millions.) I don't see Chase having an issue with flipping the cards to MC if it came down to it, but there are likely other issues surrounding Amazon shopping for a new card backer besides the Visa issue itself.

Amazon discontinuing Visa Credit Card payments

Beast26 — Tue, 04 Jan 2022 00:02:11 GMT

What will this mean for the Amazon visa signature holders? Will it no longer work on Amazon? I don't have it but I'm curious I read an article about it and not sure if I'm allowed to link it here but it said in a few days amazon will no longer accept visa payments from a credit card because of high swipe fees.

Re: Amazon discontinuing Visa Credit Card payments

M_Smart007 — Tue, 04 Jan 2022 00:17:04 GMT

Could it just be in the UK ???

https://www.thesun.co.uk/tech/17199318/amazon-visa-credit-card-rejected/

ETA: A second article;

https://noetikavit.wordpress.com/2021/12/31/amazon-to-stop-accepting-visa-credit-cards-in-uk-from-jan-2022/

Re: Amazon discontinuing Visa Credit Card payments

House1204 — Tue, 04 Jan 2022 00:16:20 GMT

I believe that is in the UK only.

Re: Amazon discontinuing Visa Credit Card payments

M_Smart007 — Tue, 04 Jan 2022 00:18:17 GMT

@House1204 wrote:
I believe that is in the UK only.

I am in the US and received no emails in regards to Amazon NOT accepting "VISA"