Due to the “high cost of payments”, according to the online retailer, Amazon will not be accepting UK-issued Visa cards anymore, which came as an abysmal shock, given how Visa was the leading card brand in the UK no further than 2 years ago.
The company admits their decision is “inconvenient”, however, they insist that it’s in their best interests. Visa, on the other hand, accuses the company of restricting choice
Amazon customers were informed the ban would take effect starting 19th January via email on Wednesday, with the online retail giant assuring users that no other credit or debit cards would be included, except Visa.
The reason behind Amazon’s sudden shift are the so-called interchange fees acting as additional cross-border tolls, which according to Amazon, have risen five times since Brexit. These particular fees, if passed on, would destroy margins, ultimately leading to higher Amazon prices, according to the company.
Simultaneously, the British Retail Association reported an additional annual increase in card fees by £150m, with some of them rising by nearly 500% all around Europe.
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