Amazon and Visa have resolved their dispute over credit card fees.
Gatekeepers News reports that Amazon has struck a new global deal with Visa, putting an end to the rejection of Visa credit card payments across its sites.
In November, the online retailer threatened to stop the use of UK-issued Visa credit cards because of the fees charged to process payments.
Gatekeepers News reported that Amazon while announcing this stated that “The cost of accepting card payments continues to be an obstacle for businesses striving to provide the best prices for customers.”
Visa on its part said it was “very disappointed that Amazon is threatening to restrict consumer choice in the future”.
After weeks of negotiations, the two businesses finally reached an agreement including the postponement of the ban for UK users.
A Visa spokesperson said, “Visa is pleased to have reached a broad, global agreement with Amazon. This agreement includes the acceptance of Visa at all Amazon stores and sites today, as well as a joint commitment to collaboration on new product and technology initiatives to ensure innovative payment experiences for our customers in the future.”
Amazon on its part said, “We’ve recently reached a global agreement with Visa that allows all customers to continue using their Visa credit cards in our stores. Amazon remains committed to offering customers a payment experience that is convenient and offers choice.”
In the past, Amazon customers in Australia and Singapore had to pay a surcharge when purchasing items using a Visa credit card. This has also been removed.
The furore comes after the removal of an EU cap on fees charged by card issuers in the UK after Brexit.
A senior editor at Which? Money, Ele Clark, while welcoming the news, said, “Using a credit card to pay offers shoppers valuable legal protections that debit cards cannot, and removing this option for Visa cardholders would have meant fewer rights for millions of consumers.
“However, there have been longstanding concerns about credit card fees, and this affects customers and businesses. The regulator must urgently take forward its proposals to examine whether card fees are fair and what impact this will have on competition.”
