Amazon, Visa strike deal to accept credit card payments worldwide

Amazon, Visa strike deal to accept credit card payments worldwide

by Pranali Mehta

Visa and Amazon have reportedly come to a long-awaited agreement regarding the payment fees in the U.K. and elsewhere. The companies have reached a global agreement that enables customers to continue to make payments with their Visa credit cards across all Amazon stores.

In January this year, Amazon had said that it would stop accepting Visa’s credit cards in Britain, due to its high transaction fees.

The remainder of Europe wasn’t affected since the EU has imposed a ceiling on card issuer fees, but both Visa and Mastercard cards had increased fees in the U.K. following Brexit. Notably, regulators in the U.K. have recently announced that they’d investigate such increases.

 Market experts were skeptical as to whether Amazon would carry out its threat, given Visa’s supremacy in the payments market.

The prediction turned out to be accurate as shortly before the deadline, Amazon stated that it would continue to accept Visa cards after all and announced that it was closely working with the financial services company on a potential solution.

According to sources, Amazon hasn’t banned or warned that it would ban Visa cards elsewhere in the world, but it did levy an extra 0.5% transaction fees for customers who use Visa cards in Singapore and Australia. However, that charge has now been revoked, and Amazon and Visa seem to have overcome their long-winded dispute.

A Visa spokesperson was quoted saying that the agreement will include acceptance of all Visa cards at Amazon websites and stores today, along with a joint commitment to collaborating on various technology and product initiatives.

It is worth noting that most credit card transactions levy various fees, including technology and service charges, as well as ‘interchange fees’ that the cardholders’ bank reimburses to the retailer’s bank. The type of fees around which the U.K. dispute revolved is yet to be known.

Source Credits –

https://techcrunch.com/2022/02/17/amazon-reaches-deal-to-continue-accepting-visa-payments-worldwide/

Pranali Mehta

A chemical engineer by qualification, Pranali Mehta dutifully walked down the slated path and worked in a chemical firm for a year. Her passion for writing however, pushed her into experimenting with the same as a career. With over three years of experience in content writ Read more...