Amazon says it will continue to accept payment in the UK from Visa credit cards, reversing a decision to ban the cards that was announced last November and due to kick in this week on Wednesday, January 19th.
In an email to customers, Amazon said it was “working closely on a potential solution that will enable customers to continue using their Visa credit cards on Amazon.co.uk.” The company did not say what the solution was or how long it might be in place, but added that “should we make any changes related to Visa credit cards, we will give you advance notice.”
The original decision to ban Visa credit cards on Amazon.co.uk arose from a dispute over payment fees levied by card issuers. The European Union sets limits on these particular fees, but when the UK left the EU it gave issuers free rein to increase them. Visa raised its interchange fees from 0.3 percent to 1.5 percent, which evidently annoyed Amazon.
Although it’s not clear what deal has been brokered between Amazon and Visa and who it favors, it was Visa’s stock that dropped after the ban was initially announced. As per Sky News, Visa said in a statement: “Amazon customers can continue to use Visa cards on Amazon.co.uk after 19 January while we work closely together to reach an agreement.”
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