Amazon (AMZN) is to cease accepting payments made by UK-issued Visa (V) credit cards from next year, it has been revealed.
The online retail giant blamed the decision on high fees charged by Visa to process transactions.
The changes will come into effect as early as 19 January 2022, Bloomberg first reported, citing information that Amazon had shared with its customers this week, after they had purchased items.
Visa debit cards, as well as MasterCard and Amex credit cards, can still be used on the site. Visa credit cards issued outside of the UK can also be used as normal.
“UK shoppers can use their Visa debit and credit cards at Amazon UK today and throughout the holiday season. We are very disappointed that Amazon is threatening to restrict consumer choice in the future. When consumer choice is limited, nobody wins,” a Visa spokesman said.
“We have a long-standing relationship with Amazon, and we continue to work toward a resolution, so our cardholders can use their preferred Visa credit cards at Amazon UK without Amazon-imposed restrictions come January 2022.”
Amazon said: “The cost of accepting card payments continues to be an obstacle for businesses striving to provide the best prices for customers.”
Read more: Amazon opens first no-checkout store in London
The news comes a month after Amazon opened its first ‘4-star’ store concept outside of the US at the Bluewater shopping centre near Dartford in Kent.
Some 2,000 products that are rated four-star or above on Amazon’s website are on sale at the new shop, ranging from Lego sets, books and pet toys to kitchen gadgets.
The goods on sale will change regularly, depending on what is selling well online. Amazon has around 30 such stores in the US. The first 4-star store opened in New York in 2018.
Unlike its Fresh grocery store, this shop does not have Amazon’s “Just Walk Out” technology. Customers can pay with cash, credit card or through the Amazon app, but having an Amazon account is not necessary.
This is different from Amazon’s no-check out grocery store, which opened in the UK earlier this year. To use that, customers need to be signed up to Amazon’s Prime subscription service, which costs £7.99 ($11) a month.
In addition to its Fresh store, the online shopping giant has also opened a hair salon and six convenience stores in Britain this year.
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