From next year, Amazon.com Inc (AMZN.O) will no longer accept Visa Inc (V.N) credit cards issued in the United Kingdom.
The e-commerce giant said on Wednesday that this is owing to the payment processor’s high transaction fees.
After Brexit, the UK was no longer subject to an EU interchange fee cap, allowing card networks to hike their costs. Hence, Visa raised the interchange fees it charges businesses for processing digital transactions between the United Kingdom and the European Union earlier this year.
What they are saying
Amazon spokesperson said in an emailed statement, “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,”
Customers can still use Visa debit cards, Mastercard and Amex credit cards, as well as Eurocard, according to an email from Amazon seem by Reuters.
“We are very disappointed that Amazon is threatening to restrict consumer choice in the future,” a Visa spokesperson said in a statement.
“We continue to work toward a resolution, so our cardholders can use their preferred Visa credit cards at Amazon UK without Amazon-imposed restrictions come January 2022,” they added.
UK Trade Commission responds
The decision by Amazon has caused the UK Trade Commission to urge the government to reform the UK-EU trade deal as calls for British regulators to look into the fees in the credit card market heightens.
“If Amazon can’t make it work, with all their resources and ability to navigate legislation to avoid costs, then small businesses have no chance and so the government must improve the UK-EU trade and cooperation agreement to keep British businesses competitive,” Tamara Cincik, UK Trade and Business Commission stated.
