Amazon Will Stop Accepting Visa Credit Cards in the UK

Amazon will stop accepting Visa credit cards issued in the UK due to high transaction fees.

From January 19th, 2022 onward, Amazon will no longer accept Visa credit cards issued in Britain.

Source: Compare the Market 

A credit card allows you to spend money up to a pre-set limit. You'll get a bill for what you've spent each month. If you pay off the bill in full, you won't pay any interest on what you've borrowed unless you have used your credit card to withdraw cash.

Visa is very disappointed that Amazon is threatening to restrict consumer choice in the future.

Amazon customers were told they will still be able to use debit cards — including those issued by Visa — and non-Visa credit cards like Mastercard and American Express.

Users are being encouraged to update their default payment method ahead of the changes. 

Visa increased the interchange fees it charges merchants for processing digital transactions in the United Kingdom following the country’s exit from the European Union. 

Amazon blasted Visa for its high card charges.

The cost of accepting card payments continues to be an obstacle for businesses striving to provide the best prices for customers.

British customers make tens of billions of pounds of purchases every year from European merchants on credit cards alone - and the hike in fees from Visa will affect the majority of those.

With the increase not coming in until next year, international companies may look at ways to reclassify UK sales, to avoid the charges.

Transactions fees should be going down over time with technological advancements, but instead they continue to stay high or even rise.