In November last year, e-commerce platform Amazon announced that from January 19, 2022, its UK website Amazon.co.uk will stop accepting consumers to make purchases with UK Visa credit cards. Before the ban took effect, Amazon issued a statement on Monday (January 17) saying that it would negotiate with Visa, during which consumers can continue to use Visa to shop on Amazon’s UK station.
The reason why Amazon decided to reject Visa last year was related to the fact that after the UK leaves the EU completely at the end of 2020, Visa is no longer subject to the EU fee limit, and as a result, the fee has increased significantly from the previous 0.3% to 1.5%. Amazon believes that Visa’s fee too high. When Amazon announced that it was rejecting Visa, Visa said it was very disappointed with the decision, but would try to reach a consensus with Amazon.
Since most consumers use credit cards for shopping in online stores, the increase or decrease in credit card fees has a great impact on e-commerce platforms. Fraud, etc., so you need to charge a higher fee. Although Amazon stopped the decision to refuse Visa in the UK, it was only temporary, and the two sides always had to negotiate a solution to the handling fee.
Source: siliconrepublic
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