Blaming the “high cost of payments,” Amazon.com said starting next year, it will no longer accept Visa credit-cards issued in the U.K.
“The cost of accepting card payments continues to be an obstacle for businesses striving to provide the best prices for customers. These costs should be going down over time with technological advancements, but instead they continue to stay high or even rise,” said an Amazon
AMZN,
spokesperson in emailed statement on Wednesday.
“As a result of Visa’s continued high cost of payments, we regret that Amazon.co.uk will no longer accept UK-issued Visa credit cards as of 19 January, 2022,” the spokesperson said. The e-commerce giant will accept debit cards, including those from Visa, along with other cards not issued by the credit giant.
“With the rapidly changing payments landscape around the world, we will continue innovating on behalf of customers to add and promote faster, cheaper, and more inclusive payment options to our stores across the globe,” said Amazon.
In a separate statement, a Visa
V,
spokeperson said the company was “very disappointed that Amazon is threatening to restrict consumer choice in the future.
“When consumer choice is limited, nobody wins. We have a longstanding relationship with Amazon, and we continue to work toward a resolution, so our cardholders can use their preferred Visa credit cards at Amazon U.K. without Amazon-imposed restrictions come January 2022,“ said the spokesperson in an emailed statement.
Separately, a Visa spokeswoman said the company’s fees remain “competitive.”
As others pointed out, it could mean more business for Amazon’s own credit card offerings, as the company has partnerships with American Express
AXP,
and Mastercard
MA,
This post was originally published on Market Watch
