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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. |
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
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.
Poor Amazon, how will they ever manage!
In other news, next *almost space* flight postponed by 3 minutes due to lack of funds
Original post edited to add news article, otherwise Smorg (not that it's a bad thing).
@longtimelurker if you wish to cite a different source, feel free to edit link
@Remedios wrote:Original post edited to add news article, otherwise Smorg (not that it's a bad thing).
@longtimelurker 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)
@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%).
@longtimelurker 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%).
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. 🤷
hi,
@Remedios wrote:Original post edited to add news article, otherwise Smorg (not that it's a bad thing).
@longtimelurker if you wish to cite a different source, feel free to edit link
where the original post was made?