Amazon plans to stop accepting Visa credit card payments in the UK from next year. Why is Amazon doing this? Visa is increasing its surcharges for card payments and Amazon is unwilling to pay them.
The cap on interchange fees, valid in the EU, will no longer apply in the UK after Brexit. This has allowed card networks such as Visa and Mastercard to increase their fees. Because of this, both companies have increased the fees they charge merchants for processing transactions between the UK and the EU.
Credit card payments on Amazon
However, Amazon will only restrict Visa credit card payments. Customers have been informed that they will still be able to use debit cards, including those issued by Visa, and non-Visa credit cards, such as Mastercard and American Express.
Amazon has made this visible once again with its statement warning Singapore shoppers that they will be charged a 0.5% surcharge on purchases made with Visa cards. The company also left the door open to the possibility of this happening in other countries if credit card fees increase.