Amazon has finally reached an agreement with Visa, will continue to accept Visa credit cards globally
In November last year, Amazon announced that it would stop accepting Visa credit cards in the UK due to a dispute related to Visa’s processing fee. Amazon had initially planned on dropping support for Visa credit cards on January 19. However, the company scrapped this change a few days ahead of the deadline and revealed that it was “working closely with Visa on a potential solution.” The two companies have finally reached an agreement, and Amazon has now announced that it will continue to accept Visa credit cards globally.
In an announcement on Thursday, Amazon revealed (via Reuters) that it has reached an agreement with Visa regarding the processing fee. While neither company shared details about the deal, Visa shared a statement saying, “This agreement includes the acceptance of Visa at all Amazon stores and sites today, as well as a joint commitment to collaboration on new product and technology initiatives.”
For the unaware, Visa started charging 1.5% (up from 0.3%) of the transaction value for credit card payments made online or over the phone between the UK and EU last October. The company also increased the processing fee for debit card transactions from 0.2% to 1.15%. This change is what led to Amazon’s initial announcement in November. But since the two giants have now come to an agreement, users shouldn’t face any issues while using Visa credit cards on Amazon.
Note that this isn’t the first time a major retailer has threatened to stop accepting Visa credit cards due to the processing fee. Reuters notes that back in 2016, Walmart’s Canadian unit said that it would stop accepting Visa credit cards after it couldn’t reach an agreement on the fees. However, the two companies reached an agreement a few months later and settled the matter.