On Air Now

Old School Hits

6:00pm - 8:00pm

Now Playing

West Wolds Radio

The Latest News

Amazon to stop accepting Visa credit cards in UK

Amazon said it was due to high credit card transaction fees

Amazon, online retail giant, has said they will stop accepting Visa credit cards issued in the UK from 19 January

It said the move was due to high credit card transaction fees but said Visa debit cards would still be accepted.

Visa said it was "very disappointed that Amazon is threatening to restrict consumer choice in the future".

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

The online retailer said costs should be going down over time due to advances in technology, "but instead they continue to stay high or even rise".

An Amazon spokesperson said the dispute was to do with "pretty egregious" price rises from Visa over a number of years with no additional value to its service.

Amazon is offering £20 for Prime customers to switch from using Visa to an alternative payment method, and £10 for other customers, if they have a Visa cards as their default or only payment method on their account.

Visa said in a statement it was "very disappointed that Amazon is threatening to restrict consumer choice in the future. When consumer choice is limited, nobody wins."

It said it had "a long-standing relationship with Amazon" and that it was trying to resolve the situation so customers would be able to use Visa credit cards with Amazon UK.

Amazon declined to say how much Visa charges the retailer to process transactions made on credit cards.

Visa also declined to comment though it claimed that on average it takes less than 0.1% of the value of a purchase.

Chris Beauchamp, Chief Market Analyst from IG gave these thoughts on Amazon's decision and how it may affect them.

"Given everyone expects Visa and Amazon to strike a deal, the shares continue to suffer. Perhaps because it throws open a wider issue, namely, the rise in competition via startups in an area that has previously been the sole preserve of Visa and Mastercard, whose shares are down to today.

"Plus consumer spending is in focus too, with investors evidently worried that COVID restrictions might return. However, the experience of previous lockdowns points towards fairly resilient credit card activity."

More from National News

Keep Connected

Today's Weather

  • Pocklington

    Heavy Rain

    High: 5°C | Low: -1°C

  • York

    Heavy Rain

    High: 5°C | Low: -1°C

  • Hull

    Thunder storm

    High: 5°C | Low: 0°C

Pocklington's News