Millions of Amazon customers will be unable to make payments next year after the online retailer banned Visa credit cards in the UK.
In a email sent to customers, Amazon said it would no longer accept the cards due to the “high fees” Visa charges for processing transactions. The ban will come into force on Jan 19.
Customers will still be able to use Visa debit cards and non-Visa credit cards, such as Mastercard, Amex, or Eurocard. A spokesman for Amazon said: “The cost of accepting card payments continues to be an obstacle for businesses striving to provide the best prices for customers.
“These costs should be going down over time with technological advancements, but instead they continue to stay high or even rise. As a result of Visa’s continued high cost of payments, we regret that Amazon will no longer accept UK-issued Visa credit cards.”
Roughly nine in 10 British shoppers use Amazon, according to Mintel, a research firm, with around 40pc using its Prime subscription service. Amazon declined to comment on exactly how many customers would be affected.
A Visa spokesman said it was “very disappointed” that Amazon was threatening to “restrict consumer choice” by banning its cards. A spokesman said: “When consumer choice is limited, nobody wins. We have a long-standing relationship with Amazon, and we continue to work toward a resolution.”
