Amazon UK is to stop accepting credit cards from Visa, blaming the ban on the ‘high cost of payments’.
The measure, which takes effect Jan. 19, will issue purchases made with Visa debit cards.
In informing customers about the move, Amazon announced that they decided because of the “high Visa fee for using credit card transactions” on its UK cards.
A Sky News spokesman said: “The cost of receiving payment documents remains a barrier for businesses trying to offer customers the best prices.”
A visa was created to take advantage of Brexit to raise trade taxes on cross-border trade between the UK and the EU. Before Brexit, traders and paper manufacturers in Britain benefited from the 0.3% limit on credit card trading fees imposed by the European Commission.
But with the country leaving Europe, Visa increased its costs for internet and phone purchases by 1.5%. For credit card transactions, the price will increase from 0.2% to 1.15% in January, with similar action by Mastercard.
Amazon customers who use a Visa credit card as their giant non -payment option have been told to switch to another card.
Visa has expressed dissatisfaction with Amazon’s threat to “limit future consumer choices”.
“When consumer preferences are limited, no one wins,” a spokesman said. “We have a long-term relationship with Amazon, and we are still working on a solution for cardholders to use their Visa credit cards on Amazon UK without any of the restrictions that come with Amazon. January 2022.”