Retail giant, Amazon, will stop accepting Visa credit cards issued in the UK from 19 January 2022.
“As a result of Visa’s continued high cost of payments, we regret that Amazon.co.uk will no longer accept UK-issued Visa credit cards as of 19 January 2022,” Amazon said in a statement, also notifying its users via emails.
It said the move was due to high credit card transaction fees but said Visa debit cards would still be accepted.
The online retailer is also considering dropping Visa Card as its partner for U.S. co-branded credit cards.
Reuters reports that the e-commerce company is currently in talks with several payment networks including Mastercard and American Express.
After Britain’s exit from the European Union, card charges are no longer regulated under EU laws. This means card providers are free to raise their charges.
In January, Mastercard pushed for the increase of transactions charges and in October, Visa started charging 1.5 per cent of the transaction value for credit card payments made online or over the phone between the UK and EU, an increase from 0.3 per cent and 0.2 per cent charged on debit transactions, respectively.
“We are very disappointed that Amazon is threatening to restrict consumer choice in the future,” a Visa spokesperson said to the Irish Independent. “We have a long-standing relationship with Amazon, and we continue to work toward a resolution.”