Amazon reverses decision to ban customers from using Visa credit cards
By Simon Neville and Vicky Shaw, PA
Amazon has reversed a decision to ban customers from using UK Visa credit cards on its website.
The online retailer had been expecting to introduce the changes from this Wednesday, having warned customers the card company’s fees were too high.
But Amazon said on Monday: “The expected change regarding the use of Visa credit cards on Amazon.co.uk will no longer take place on January 19.
“We are working closely with Visa on a potential solution that will enable customers to continue using their Visa credit cards on Amazon.co.uk.”
A Visa spokesperson added: “Amazon customers can continue to use Visa cards on Amazon.co.uk after January 19 while we work closely together to reach an agreement.”
Amazon did not rule out a future ban.
The website previously said it has made the decision due to “the high fees Visa charges for processing credit card transactions”.
Amazon customers reported on Twitter that they had started to receive emails from the retailer, which confirmed they could continue using their cards as they do today and advance notice would be given if any changes related to Visa cards were made.
One Twitter user wrote: “I wasn’t going to get a new credit card but use it as another incentive not to use them.”
Another wrote: “Ended up getting an Amex with plan to use that instead on Amazon, but it’s now given me a card that has much better cashback (didn’t realise cashback on old Visa had ended) so worked out for me in the end.”
Another one said: “I’m very pleased that they’ve changed their minds on this.”
And someone else wrote on Twitter: “Made no attempt to change cards as I always thought they would sort it out – which they appear to have done.”
The Payment Systems Regulator (PSR) previously said it had been in contact with Amazon and the big card schemes.
And the Federation of Small Businesses (FSB) claimed previously that scheme fees charged by card providers had soared in recent years.
FSB national vice chair, Martin McTague, said on Monday: “Big online platforms like Amazon have the clout to renegotiate when they feel the card fees they’re being charged are unreasonable.
“Small businesses, especially in this climate, typically do not have the time or resource to challenge their terminal provider, or shop around for a new one.”