Amazon has confirmed that it will continue to accept Visa credit cards for payment in the United Kingdom, reversing a decision to prohibit the cards announced in November and set to take effect this week on Wednesday, January 19th.
Amazon claimed it was “working closely on a potential solution that will enable consumers to continue using their Visa credit cards on Amazon.co.uk” in an email to customers. The business did not specify what the remedy was or how long it would be in effect, but did note that “should we make any modifications connected to Visa credit cards, we will notify you in advance.”
AFTER THE UK LEFT THE EU, VISA FEES RAISED FIVE-FOLD IN INTERCHANGE FEES.
The original decision to prohibit Visa credit cards from being used on Amazon.co.uk stemmed from a disagreement about card issuer payment fees. The European Union sets restrictions on these costs, but when the United Kingdom left the EU, issuers were given carte blanche to raise them. Amazon was clearly irritated when Visa increased their interchange fees from 0.3 percent to 1.5 percent.
Although it’s unclear what agreement Amazon and Visa have reached or who benefits from it, Visa’s stock plummeted after the suspension was first announced. “Amazon customers can continue to use Visa cards on Amazon.co.uk after 19 January while we work closely together to negotiate an agreement,” Visa stated in a statement, according to Sky News.