Amazon UK to Stop Accepting Visa Credit Cards from 19th January 2022

[Flyinspanner]

Amazon doesn’t like to pay their fair share of taxes…

Seems like they don’t like to pay service charges to other companies either….

greedy, greedy, greedy..

 

[st13phil]

greedy, greedy, greedy..

Maybe, but that charge has long been laid at the door of the card providers in the UK market:

The Federation of Small Businesses (FSB) said credit card fees "charged by the handful of card providers which dominate the cashless payment space have soared in recent years".

"Small businesses are almost always charged more for card terminals than big corporates - so when online giants start throwing down the gauntlet, you know the situation is becoming critical," said FSB national chairman Mike Cherry.

Businesses have had ongoing concerns about credit card fees from the major providers.
Last October, Visa and Mastercard were accused by the British Retail Consortium (BRC) of charging excessive fees. The trade body said they had doubled in two years.
At the time, the BRC warned that retailers would be forced to pass on costs to consumers, with credit card bills rising by up to £40.
The Payment Systems Regulator said there were "real questions about how well the cards market is working".
"We will look into how well this market is working, including the issue of increasing card fees," a spokesman for the regulator said. "If necessary we will intervene to address any issues we identify."

Amazon is certainly not averse to maximising it’s profits, but the card providers have long tended to milk smaller businesses unmercifully, with quite large transaction fees.

 

[AMGeed]

I have an Amazon Prime account and haven't received any email as yet.
I feel left out

 

[Darrell]

I have an Amazon Prime account and haven't received any email as yet.
I feel left out

Don’t worry too much. I’ve not even got a credit card.

 

[Markw70]

RBS have dropped Visa and moved to Master card on debit & credit also, don’t know if it’s connected.

 

[clk320x]

Seems like they don’t like to pay service charges to other companies either….

greedy, greedy, greedy..

It’s their choice though and as a business they need to do what is in their best interests.

I order everything through Amazon as their prices are far better than other stores both online or on the high street.. not to mention the next/same day delivery and excellent customer service.

This VISA change doesn’t affect me as I use AMEX but even if it did then I wouldn’t let it stop me buying from Amazon.. as a customer their service is pretty unmatched IMO.

 

[Bobby Dazzler]

It’s their choice though and as a business they need to do what is in their best interests.

I order everything through Amazon as their prices are far better than other stores both online or on the high street.. not to mention the next/same day delivery and excellent customer service.

This VISA change doesn’t affect me as I use AMEX but even if it did then I wouldn’t let it stop me buying from Amazon.. as a customer their service is pretty unmatched IMO.

I use Amex with Amazon too, and they’re notoriously expensive for the seller, but maybe they were prepared to negotiate with Amazon, but VISA weren’t!

 

[clk320x]

I use Amex with Amazon too, and they’re notoriously expensive for the seller, but maybe they were prepared to negotiate with Amazon, but VISA weren’t!

Yes I’m sure AMEX have a very good deal in place with Amazon as you can even see how many points you have on Amazons site and redeem them etc.

 

[John]

All our credit cards flipped to Mastercard years ago.

I suspected it was VISA charging too much.

Probably why Rockstar Games refer to them as Fleeca in their games.

 

[Accused]

My business Visa and personal both went to Mastercard recently (Santander) wondered why

 

[MikeInWimbledon]

Might be wrong, by my understanding is that they're kicking out VISA credit (only), but continuing to accept VISA debit and all the usual suspects.

So it's not disintermediation of a major payment system, just kicking out a credit card provider that rips off both the service provider and the end client.

Might be wrong, but someone needs to be challenging how these payment monopolies (technically correct) rip off the end client.

 

[whitenemesis]

Might be wrong, by my understanding is that they're kicking out VISA credit (only), but continuing to accept VISA debit and all the usual suspects.

Not wrong that's exactly what Amazon is doing. Both parties are in talks and I expect VISA will come to some agreement i.e will reduce it's charges and Amazon will reinstate acceptance of their credit card. VISA will not want to loose what must be a massive bit of business for them...

 

[SpikyMikey]

I have an Amazon Prime account and haven't received any email as yet.
I feel left out

The Present Mrs Spiky hasn't had an email either; I'll send her round so you can sulk together

 

[markjay]

My wife and I both have separate Amazon accounts and I got the £20 credit offer in my email, yet she didn't in hers.

I've made use of it already

You didn't offer your credit to her...? Ooooh..... where has chivalry gone....?

 

[st13phil]

There's a little further info on the background to this on the front of the FT today.

When the UK left the EU, payment companies escaped the EU cap on cross-border interchange fees. For credit card payments made online or over the phone between the UK and EU, the charge levied by VISA before last month was 0.3%, but from last month, VISA hiked the fee to 1.5% which looks somewhat opportunist to say the least, and I tend to concur with Amazon's definition that this is an "egregious increase". Amazon have been clear that Brexit is not the specific cause of their dispute with VISA who they blame for increasing fees over a long period.

The article also mentions that grocery chains in the US owned by Kroger have previously announced a ban on VISA credit card transactions over excessive transaction fees, but have subsequently reversed it, and that since earlier this year Amazon has been adding a 0.5% surcharge on purchases made with VISA credit cards in Australia and Singapore, so it's clear that this is an ongoing and global issue.

 

[Gollom]

The Present Mrs Spiky hasn't had an email either; I'll send her round so you can sulk together

Guessing the mail went only to people who had a VISA credit card as their primary payment method?

 

[davymead]

Guessing the mail went only to people who had a VISA credit card as their primary payment method?

Not in my case as I pay my Amazon Prime by VISA debit, not credit.

 

[SpikyMikey]

Guessing the mail went only to people who had a VISA credit card as their primary payment method?

Her's is a Visa credit so

 

[Gollom]

Her's is a Visa credit so

Go get 'em Floyd!