Amazon has stepped back from its plans to stop accepting Visa credit cards in the UK.
The ecommerce giant had said it would halt Visa credit card payments from January 19 following a dispute over fees.
But in an email to customers, Amazon now says it is not going to go through with the move, and is "working closely" with Visa to find a solution.
"Working closely"
The Amazon email, seen by Sky News, said that the company was, "working closely with Visa on a potential solution".
Although this does not mean the issue is completely resolved, it should mean the January 19 deadline is no longer active.
"Should we make any changes related to Visa credit cards, we will give you advance notice," Amazon added in the email.
"Amazon customers can continue to use Visa cards on Amazon.co.uk after January 19 while we work closely together to reach an agreement," Visa added in a statement.
News of the ban, due to what Amazon blamed on, “the continued high cost of payments”, first came to light in November as the latest salvo in an ongoing dispute between the two companies.
Visa and its rival Mastercard are the two major payment networks that dictate the rates merchants pay in swipe fees. The majority of those fees go to the banks, but Visa has long been criticized for the way it calculates these rates.
In the UK, Visa began charging an extra 1.5% on cross-border payments between the UK and EU, given that the EU-enforced cap on fees no longer exists after Brexit.
Amazon had imposed charges on Visa customers in some countries within the last few months, including a 0.5% surcharge on Visa credit card purchases on its Singapore website back in September 2021, which was followed shortly by similar surcharges on Visa transactions in Australia.
The company has a much close relationship with Mastercard, launching the Amazon Platinum Mastercard back in 2017 offering customers rewards and money back when they buy on Amazon.
- Make sure to also check out our list of the best shopping cart software right now
Via Sky News
