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

longtimelurker
Epic Contributor

Re: Amazon discontinuing Visa Credit Card payments

Message 21 of 28
M_Smart007
Legendary Contributor

Re: Amazon discontinuing Visa Credit Card payments


@longtimelurker wrote:

Earlier thread on this

 

Amazon UK vs Visa + Amazon in Talks to Switch Co-B... - myFICO® Forums - 6443064


Thanks LTL, I usually read " Credit in the News " but somehow missed that oneSmiley Tongue

Message 22 of 28
longtimelurker
Epic Contributor

Re: Amazon discontinuing Visa Credit Card payments

Update:  Amazon suspends the plan for now.

 

Amazon halts plan to block UK Visa credit cards amid talks - BBC News

Message 23 of 28
Adkins
Legendary Contributor

Amazon & Visa reach a deal

UK customers can go back to using Visa .   

 

"The deal means Amazon customers in the U.K. can continue using Visa credit cards, as previously announced by the two companies.

 

Amazon will also drop a 0.5% surcharge on Visa credit card transactions in Singapore and Australia, which it introduced last year.

 

Amazon has been piling pressure on Visa to lower its fees, signaling growing frustration from retailers over the costs associated with major card networks."

Last HP 05-15-2022



Message 24 of 28
gdale6
Moderator

Re: Amazon & Visa reach a deal

Yeah well you get to pay to play, just because you are Amazon doesnt give you the right to lower fees. Pretty clear to me now as to all the talk of Chase losing their credit card portfolio.

Message 25 of 28
LADave
Regular Contributor

Re: Amazon & Visa reach a deal

It's not exactly clear what the outcome was for Amazon and Visa (the  linked article is pretty vague about it). But merchants smaller than Amazon have negotiated with companies like Visa and American Express for smaller fees.

 

Costco took only AMEX credit cards until 2017, and they now only take Visa. The swipe fee they pay Visa is only 0.4 percent(!) - way less than the rewards that most of their customers receive for those Visa cards, including the non-Costco-branded Citibank cards. (https://www.mentalfloss.com/article/619285/why-costco-only-accepts-visa-credit-cards)

 

Having 79 million customers gives Costco tons of leverage, and there are people who keep at least one Visa card because they want to use a credit card at Costco. If Amazon had gone to either not taking Visa in the U.S. or charging a surcharge, you can be sure that many would have decided to carry at least one non-Visa card for the same reason.

Message 26 of 28
Red1Blue
Super Contributor

Re: Amazon & Visa reach a deal

I think the issue here is lot more complicated than Visa and Amazon involved. This issue is only in UK and it started when UK left EU and several changes happend. I am not an expert on EU and UK issues but the dispute Amazon and Visa had it over the users located in UK.

Message 27 of 28
Dinosaur
Moderator Emeritus

Re: Amazon & Visa reach a deal


@gdale6 wrote:

Yeah well you get to pay to play, just because you are Amazon doesnt give you the right to lower fees. Pretty clear to me now as to all the talk of Chase losing their credit card portfolio.


No sin in flexing your competitive corporate muscle and that certainly does give you the right to lower fees if you can. Some one is going to make money (may not be the consumer) so it will be someone for sure.

 

My sympathy for Visa is only equal to my sympathy for MasterCard ... NONE!

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Message 28 of 28
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