Amazon will continue to accept Visa credit cards, which is great news

Amazon has backed down on plans to cease accepting Visa credit cards in the United Kingdom.

Following a pricing disagreement, the ecommerce behemoth said it will stop accepting Visa credit card payments on January 19.

However, Amazon now claims in an email to customers that it will not go forward with the shift and that it is “working closely” with Visa to find a solution.

“We’re collaborating closely”

According to an email obtained by Sky News, Amazon was “working closely with Visa on a possible solution.”

Although this does not indicate the problem has been totally remedied, the January 19 deadline should no longer be in effect.

“We will provide you an early notification if we make any changes connected to Visa credit cards,” Amazon wrote in the email.

“Amazon customers may continue to use Visa cards after January 19 while we work closely to find an agreement,” Visa said in a statement.

The prohibition was announced in November as the latest volley in an ongoing disagreement between the two businesses, which Amazon blamed on “the continuous high cost of payments.”

Visa and its competitor Mastercard are the two main payment networks that set the swipe charge rates for retailers. The banks get the bulk of those fees, but Visa has long been chastised for how it calculates them.

Given that the EU-enforced fee ceiling no longer existed after Brexit, Visa started charging an additional 1.5 percent on cross-border payments between the UK and the EU.

In recent months, Amazon has placed fees on Visa consumers in a number of locations, including a 0.5 percent premium on Visa credit card purchases on its Singapore website in September 2021, which was quickly followed by similar levies on Visa transactions in Australia.

The corporation has a tight partnership with Mastercard, having launched the Amazon Platinum Mastercard in 2017, which rewards users with cash back when they shop Now.