Amazon users were told this week that as of January 19, they can no longer use UK-issued Visa credit cards to make purchases due to high fees charged by the payment processor, according to multiple reports.
Amazon’s response is the latest in a series of payments by retailers regarding transaction fees charged by payment networks such as Visa.
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Customers can use Visa, Mastercards and American Express debit cards in addition to Visa credit cards issued outside the UK, reports say.
“The cost of accepting card payments continues to be an obstacle for companies striving to provide the best rates to customers,” an Amazon spokesperson said, according to Bloomberg. “These costs should decrease over time with advances in technology, but instead continue to rise or even rise.”
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Card fees have been the subject of contention between Visa, Mastercard, and their merchants, banks, and payment networks. Retailers have had trouble with the billions they spend to accept electronic payments, with fees continuing to rise and even higher when customers use premium cards, which have higher exchange rates.
A spokesperson for Visa said the company was “deeply disappointed that Amazon threatens to restrict consumer choice in the future. When consumer choice is limited, no one wins.”
“We have a long-standing relationship with Amazon, and we continue to work towards a solution,” the spokesperson added.
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