Why is Amazon stopping UK Visa credit card acceptance from Jan 19?

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Amazon Cites High Transaction Fees for Halting UK Visa Credit Card Acceptance

Amazon will cease accepting Visa credit cards issued in the United Kingdom from January 19, 2022, due to the high costs associated with transaction fees. The e-commerce company stated that these fees have not decreased with technological advancements as expected, but have instead remained high or increased. This decision follows similar actions taken by Amazon in Singapore and Australia, where surcharges were introduced on Visa credit cards because of elevated fees.
Escalating Dispute Over Transaction Costs

The core of Amazon's decision stems from a disagreement with Visa over the level of transaction fees. Amazon has indicated that these fees should be declining due to technological progress, but they are reportedly staying static or rising. This stance suggests a broader retail industry shift in how large merchants negotiate payment processing costs, moving away from accepting fees as a standard cost of accessing a large customer base.
Alternative Payment Methods Remain Available

Despite the halt on Visa credit cards, Amazon customers in the UK will still have multiple ways to pay. The company has confirmed that Visa debit cards will continue to be accepted, alongside credit cards from Mastercard and American Express, as well as Eurocard. This ensures that a range of payment options remain for consumers wishing to shop on Amazon UK.
Visa Expresses Disappointment and Seeks Resolution

Visa has publicly stated its disappointment with Amazon's decision, highlighting that it restricts consumer choice. The payment network has indicated that it is actively working towards a resolution that would allow Visa credit cardholders to continue using their cards on Amazon UK without any imposed limitations. This suggests ongoing negotiations between the two companies to find a mutually agreeable fee structure.

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Why is Amazon stopping UK Visa credit card acceptance from Jan 19?

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