Effective January 19, 2022, Amazon will no longer accept Visa credit cards for payments in the UK. Amazon cut ties with visa Due to increased transaction costs in the United Kingdom (UK) after Brexit. American Express and Mastercard credit cards will still be accepted. to write the edge.
Consequences of Britain leaving the European Union
The fact that Amazon has come to this decision mainly relates to Britain’s exit from the European Union. Since the UK left the European Union, credit services have been given free rein to raise their transaction costs. Under European legislation, these costs are set at 0.3 percent of the purchase. Since Brexit, Visa has used this freedom to increase transaction costs in the UK to 1.5%.
Of course, this decision infuriates Amazon, which sees a greater part of its revenue disappearing into payment services. Card payment transaction costs are still an obstacle for companies striving to provide the best service to their customers. An Amazon spokesperson said these costs should decrease over time due to technological advances, but remain the same or until we notice an increase.” the edge. “For this reason, we regret to say that amazon.co.uk will not be accepting payments with Visa credit cards from January 19, 2022.”
Single Visa Credit Cards
At Visa, they responded with disappointment to the news: “We deeply regret that Amazon threatens to limit consumer choice in the near future. When consumer choice is limited, no one wins. We have a longstanding relationship with Amazon and continue to look for a solution.”
Interestingly, the ban only applies to Visa credit cards, so Brits who own a Visa debit card or a credit card from another company such as Mastercard can continue to buy from Amazon. However, MasterCard implemented a similar increase in transaction costs in the UK. Amazon may realize that many purchases on its site are made via credit cards.