Amazon will not ban Visa credit cards in UK stores on January 19

Image for article titled Amazon Simmers Down, says it won't block Visa credit cards in the UK store on January 19 after all

Photo: justin sullivan (Getty Images)

When it comes to Amazon and money, never say never. Two days before the e-commerce giant banned Visa credit cards from its UK store, he changed his tone. Visa credit cards are still welcome on the platform, for now.

On Monday, Amazon told customers in an email that it was “working closely with Visa on a potential resolution” to their disagreement, Sky News reported. Visa has confirmed that it is in talks with Amazon for various electrical outlets—Gizmodo has contacted the company’s European division, but we haven’t heard back yet—and that customers could continue to use their credit cards in the meantime. (Visa debit cards are not affected).

The sudden truce is good news for Amazon customers in the UK, where almost 90% buy on the e-commerce site, the Guardian underline. Additionally, aAn estimated 21 million people are Prime members. Reports in December said Amazon could have lost up to $1.9 in sales to UK customers. Visa would also have been hurt by the move, as customers would have been forced to use other cards on Amazon.

The feud between Amazon and Visa dates back to November. This month, mad at rising fees, the e-commerce giant has proclaimed that it will ban Visa credit cards from its site from January 19. Visa hit back at the time that Amazon was “restricting consumer choice”.

Amazon hasn’t publicly disclosed the rising fees it doesn’t like, but Sky News says the e-commerce platform is believed to be crazy about interchange fees, which it says have increased fivefold since Brexit. These fees are paid by Amazon or its merchants and would reduce profit margins and lead to changes that could increase prices for consumers.

The fight is not over yet, however. Both sides are working to reach an agreement, but that doesn’t mean they will. (Although given the big bucks involved, something tells me they probably will). If the talks dissolve without an agreement, Amazon said it would notify customers.

“If we make any changes related to Visa credit cards, we will let you know in advance. Until then, you can continue to use Visa credit cards, debit cards, Mastercard, American Express and Eurocard as you do today,” said the the company said in its email to customers.

Gizmodo contacted Amazon for comment on Monday but did not receive a response at the time of publication. We’ll be sure to update this article if someone from the company responds.


About Author

Comments are closed.