{"id":2797,"date":"2022-02-17T18:19:25","date_gmt":"2022-02-17T18:19:25","guid":{"rendered":"https:\/\/cherylroll.com\/amazon-visa-truce-over-fee-increases-380465\/"},"modified":"2022-02-17T18:19:25","modified_gmt":"2022-02-17T18:19:25","slug":"amazon-visa-truce-over-fee-increases-380465","status":"publish","type":"post","link":"https:\/\/cherylroll.com\/amazon-visa-truce-over-fee-increases-380465\/","title":{"rendered":"Amazon and Visa come to a truce over fee increases"},"content":{"rendered":"
Amazon and Visa have come to an agreement allowing customers to continue to use Visa credit cards at Amazon websites and stores, according<\/a> to Reuters<\/em>. In November 2021, Amazon announced that it would no longer accept UK-issued Visa payments<\/a> on Amazon.co.uk., citing high transaction fees.<\/p>\n Why we care. <\/strong>Amazon customers in the UK can keep using Visa credit cards as a payment method, which means one less factor that can negatively impact sales for merchants. <\/p>\n Ending this feud in the UK may also be a positive indication that this battle may not occur in other markets.<\/p>\n Amazon reportedly<\/a> considered switching its co-branded rewards credit card from Visa to Mastercard, but now that an agreement has been reached, that’s unlikely to happen. Customers that have Amazon’s co-branded Visa can continue to accumulate rewards with it, without having to open up a new line of credit, which may also help Amazon maintain its base of Prime subscribers.<\/p>\n Brexit-related fee increases.<\/strong> The European Union imposes fee limits on credit card issuers, but those restrictions no longer apply to the UK, enabling issuers to freely raise fees.<\/p>\n In October 2021, Visa raised its fee from 0.3% to 1.5% for online credit card payments between the UK and EU. It also increased its debit card fee from 0.2% to 1.15%. Mastercard raised its fees from 0.3% to 1.5% as well, according<\/a> to BBC. “Average credit card processing fees across the industry range between 1.5% and 3.5%, according to analysts,” Shivani Tanna and Mrinmay Dey wrote for Reuters<\/em>. <\/p>\n Last month, British lawmakers announced<\/a> plans to scrutinize Visa and Mastercard’s fee hikes after the country’s payments regulator found no justification for the increases.<\/p>\n Get the daily newsletter search marketers rely on.<\/p>\n \t\t\t\t\t\t\t