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While a lot of Amazon customers won't welcome this news, many consumers have an alternative payment option. I definitely think that Visa is most likely to blink first here. https://t.co/o8aAwBWteI
— Paul Sawers (@psawers) November 17, 2021
Those costs have gone up following Brexit, as that 0.3 percent was a cap (0.2 percent for debit cards) under the EU’s interchange fee regulation. That no longer applies post-Brexit. Note these costs are usually passed onto consumers via higher costs.
— Fiona Maxwell (@fionamaxwell) November 17, 2021
... And it could well win and force Visa to lower its fees – good news for consumers as they can continue to use Visa credit cards and ideally see lower costs passed through too – but a little embarrassing for regulators if they weren’t the ones to do it.
— Fiona Maxwell (@fionamaxwell) November 17, 2021
Doesn’t this just confirm that the trope of Amazon being “customer obsessed” is just nonsense? Horrible site/app and now this. https://t.co/VOjd0Uj4c6
— Shona Ghosh (@shonaghosh) November 17, 2021
Blimey. Amazon blaming ‘high fees’ for not accepting UK-issued Visa cards from January. I suspect this won’t wash with customers. Playing hardball on deals by using the public as a bargaining chip is never a good look. https://t.co/95BPbQCU8j
— Martin SFP Bryant (@MartinSFP) November 17, 2021
I don’t have a Visa credit card linked to my Amazon account - just a debit card. And they know that.
— Duncan Weldon (@DuncanWeldon) November 17, 2021
They could, I presume, have only emailed people effected rather than all customers. This feels like a bit of muscle flexing/the opening of a negotiation. pic.twitter.com/N6eDwTsSJJ
Finally, retailers are facing the challenge of higher fees, and the fact that there’s no real alternative, Visa/Mastercard account for 99 percent of transactions. Groups have argued that these costs (in the £billions) are equivalent to £46 per household per year.
— Fiona Maxwell (@fionamaxwell) November 17, 2021
Amazon to stop allowing people to use Visa credit cards from Jan (Visa debit, mastecard & amex still fine)
— Martin Lewis (@MartinSLewis) November 17, 2021
It's because Visa is increasing transaction rates now the EU cap no longer applies (post Brexit).
It's a possible negotiating tactic for Amazon to gets its fees reduced.
Specifically, fivefold rise in credit card interchange fees arises out of having left EU and then having also chosen to leave the single market/ European Economic Area - it is a classic example of an increase in Non-Tariff Barriers to trade with Europe, as a result of the deal
— Faisal Islam (@faisalislam) November 17, 2021
1. Brexit. Amazon cites high cost of Visa credit card payments as the reason for ban from Jan. 19. That’s due to interchange fees (cost paid by a retailer’s bank to the cardholder’s bank) which have gone up from a max of 0.3 percent of the value of the transaction to 1.5 percent.
— Fiona Maxwell (@fionamaxwell) November 17, 2021
been chewing on this, and it feels that Amazon is showing the world who holds more consumer sway? https://t.co/vMpGcmavoT
— alex (@alex) November 17, 2021
Amazon doesn't offer much detail, but from what I understand this move isn't just about interchange. There are other charges, like scheme fees.
— Ryan Browne (@Ryan_Browne_) November 17, 2021
Here's the full statement from the company: pic.twitter.com/9cRqujxnBg
It could be a way to get some bargaining power over Visa to lower fees. Smaller retailers aren't in a position to negotiate, but Amazon - given its size - might be.
— Ryan Browne (@Ryan_Browne_) November 17, 2021
Visa is clearly bruised by this decision, though, and it could damage their relationship in the long run.
Brits will still be able to use Visa debit cards and non-Visa credit cards like Mastercard and Amex.
— Ryan Browne (@Ryan_Browne_) November 17, 2021
Here's the email Amazon sent to customers: pic.twitter.com/OZ1jxdR0hG
Which brings me to number two: lagging regulators. Retail groups have been calling for regulators and politicians to do something about soaring fees for quite some time, but there’s little to show for it. And it's really only Amazon that could take on Visa...
— Fiona Maxwell (@fionamaxwell) November 17, 2021
Huge blow to Visa this morning, as Amazon tells UK customers it will no longer accept Visa credit cards starting 19th Jan 2022.
— Ryan Browne (@Ryan_Browne_) November 17, 2021
The changes are being made " due to the high fees Visa charges for processing credit card transactions," Amazon says. https://t.co/ijHM85Zppf
Amazon and Visa are involved in a very public spat over credit card processing fees. UK-issued Visa CCs won't be accepted from January 19th, 2022 -- unless an agreement is struck before then.https://t.co/Pt3shoQd0U
— Matt Brian (@m4tt) November 17, 2021
Note: Amazon UK has partnerships with Mastercard and AMEX ?.
Visa is unhappy (as you'd expect). Spokesperson tells me the company is "very disappointed" and says Amazon is trying to "restrict consumer choice."
— Ryan Browne (@Ryan_Browne_) November 17, 2021
"We have a long-standing relationship with Amazon, and we continue to work toward a resolution."
Amazon has its own credit cards which are, you guessed it, Mastercard https://t.co/AJQNvPeL66
— Sarah O'Connor (@sarahoconnor_) November 17, 2021
If the biggest retailer won't shoulder post-Brexit cost increases, what hope for smaller traders?
— Naomi Smith (@pimlicat) November 17, 2021
"Amazon is particularly angry at a rise in so-called interchange fees - additional cross-border costs - which it believes have risen five-fold since Brexit." https://t.co/QGvTbjCXCd
Just another Brexit 'bonus' for a Scotland that didn't vote for it: https://t.co/k5dUJeNydY Why any self respecting Scot wants to stay in the clutches of this shambolic, corrupt, sleaze ridden Tory @GOVUK is simply beyond me? #YesScots
— Bill Cruickshank (@BjCruickshank) November 17, 2021
Is this another Brexit bonus or unrelated?https://t.co/JViL2UJ61Y
— Ali Bongo #FBPE 3.5% (@AliBong63925727) November 17, 2021
Green MEP @BasEickhout was instrumental in negotiating lower credit card fees across EU single market
— Green?Molly (@GreenPartyMolly) November 17, 2021
? A privilege we lost after #Brexit
Now Amazon won't accept UK visa cards
? Yet another one of those Brexit bonuses#BrexitIsNotWorking@euromovehttps://t.co/PVcLH02pI2
Heard this on @BBCNewsbeat & @BBCRadio4 several times today and Brexit wasn't mentioned at all.
— Jim Love ??,???????? (@JimLovesLemons) November 17, 2021
"Amazon is particularly angry at a rise in so-called interchange fees - additional cross-border costs - which it believes have risen five-fold since Brexit."https://t.co/c2IqVeQJvE
A new #Brexit consequence: #Amazon will no longer accept UK-issued Visa cards because of the new cross-border interchange fees that took effect after the UK left the EU. https://t.co/LW7ghogcNH
— Dave Keating (@DaveKeating) November 17, 2021
And just in case you are thinking the story about higher credit card charges for retailers won’t affect you…
— Best for Britain (@BestForBritain) November 17, 2021
Amazon is about to stop taking UK-issued VISA as payment. Hands up anyone who voted for this Brexit. ? ~AA https://t.co/7zozudW8iI
https://t.co/WlKs2sDSPT We are getting more and more Brexshit benefits …
— Remove the Tory Government (@removethetorie1) November 17, 2021
it has begun. $amp $v $amznhttps://t.co/UowXd0OhRY pic.twitter.com/BfGGUlw5is
— ₥₳n ᶤᵑ ₿⌊₳č₭ (?,?) ? (@cryptoMIB) November 17, 2021
https://t.co/oeLj7m1MEt
— Mr_Blu (@MrBluSqr) November 17, 2021
AMAZON talking about the high cost of processing visa payments,...talks about payment tech, faster, cheaper, more inclusive methods of payment...
GO ONNNN......YOU KNOW YOU WANA AMAZON....
SHIB-ARMY!!@benny7579 ...ur area sir.
Amazon to stop accepting payments using UK Visa credit cards, due to BREXIT.
— Chris Shaw (@The_ChrisShaw) November 17, 2021
"It is understood Amazon is particularly angry at a rise in so-called interchange fees - additional cross-border costs - which it believes have risen five-fold since Brexit."https://t.co/E0Zb6gnxZj
But this is interesting... Although @BBCNews failed to determine a cause behind this, @SkyNews seem to think it might have something to do with cross border fees having risen FIVE TIMES HIGHER since, err, Brexit. Waddya know? ?https://t.co/PWNcjoOV1u
— SMR ? Pro-European Radio ? (@16MillionRising) November 17, 2021
Brexit is catching up to us all https://t.co/Rp5wQu3fbe
— Simon Coombes (@simon_comm) November 17, 2021
Amazon baulking at the “high fees Visa charges for processing credit card transactions”.?
— What Bitcoin Did (@WhatBitcoinDid) November 17, 2021
“With the rapidly changing payments landscape… we will continue innovating… to add & promote faster, cheaper, & more inclusive payment options.”?
Hmmm...?https://t.co/UU9CGzOZvb
Amazon to stop accepting Visa credit cards in UK https://t.co/YVd3jS98Bi
— Financial Times (@FT) November 17, 2021
This Amazon banning Visa credit cards story feels like another reminder of its huge and growing market power, & how readily it can flex it https://t.co/cna1sxoXt9
— Sarah O'Connor (@sarahoconnor_) November 17, 2021
Innovate, cut costs or die: Amazon is to stop accepting payments using UK-issued Visa credit cards from the start of next year.https://t.co/vMuu2zrkEM pic.twitter.com/bGceFPWdUM
— Adam Tooze (@adam_tooze) November 17, 2021
The battle between retailers, banks and payment networks just got a bit hotter today, after Amazon said it would stop accepting Visa's UK credit cards come January, citing "high fees". https://t.co/HUrQIqyLDd
— Siddharth Venkataramakrishnan (@SVR13) November 17, 2021
Amazon is to stop accepting payments using UK-issued Visa credit cards from the start of next year https://t.co/yj8kGJUfaR
— Financial Times (@FinancialTimes) November 17, 2021
Amazon to stop accepting Visa credit cards in UK | Financial Times https://t.co/tPKQ7v0g1X
— Dan Awrey (@DanAwrey) November 17, 2021
This seems like a big deal, no?https://t.co/QGHSfOnxMy
— Robert Armstrong (@rbrtrmstrng) November 17, 2021