Amazon reverses decision to ban Visa credit cards in UK over fees

Amazon says it will continue to accept payment in the UK from Visa credit cards, and reverses a decision to ban the cards announced in November last year, which were due to start this week on Wednesday 19 January.

In an email to customers, Amazon said they are “working closely on a potential solution that will allow 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 could be in place, but added that “should we make 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 imposed by card issuers. The European Union sets limits on these special fees, but when the UK left the EU, it gave issuers free rein to increase them. Visa increased brokerage fees from 0.3 percent to 1.5 percent, which clearly annoyed Amazon.

Although it is not clear which agreement has been brokered between Amazon and Visa and who favors it, it was Visa’s shares that fell after the ban was first announced. Som pr Sky News, Visa said in a statement: “Amazon customers can continue to use Visa cards on Amazon.co.uk after January 19 as we work closely together to reach an agreement.”