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Monday, September 11, 2023

Amazon Will Drop Visa As Their Partner On The US Credit Card

Amazon had said that it would stop accepting payments from Visa credit cards in the UK after which the shares of Visa dipped by 4.7%.

Amazon.com Inc is considering dropping Visa as a partner on its US branded credit card after earlier confirming it would stop accepting Visa credit cards in the United Kingdom as a dispute over payments intensified.

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Amazon Is In Talks With The Major Players

They are in talks with Mastercard, American Express, and Visa as a part of its standard process for reviewing its co-branded credit card agreement. Visa has declined to comment on this co-branded card while Mastercard and American Express did not respond to the requests.

In recent months, Amazon has introduced surcharges on customers using Visa credit cards in Singapore and Australia, citing high fees, as the relationship between the two firms deteriorated.

Britain’s exit from the EU has seen several providers hiking their charges as the EU-enforced cap on fees is no longer in place in the UK.

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Visa last month began charging 1.5% of the transaction value for credit card payments made online or over the phone between the UK and EU, and 1.15% for debit card transactions, up from 0.3% and 0.2%, respectively.

The average credit card processing fees across the industry range between 1.5% and 3.5% of each transaction, according to experts.

Laura Hoy stated that such a move has marked an important turning point in the payments industry and added that Amazon is hoping to drive more customers to their own payment system. The retail giant is the only one who would gain in this scenario, where the customer would adopt their payment system or Visa gives in to the demands and lowers its fees.

Amazon customers can still use Visa debit cards, Mastercard and Amex credit cards, and Eurocard, in the UK, Amazon said in a note to customers.

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