Online retailer, Amazon will no longer accept purchases made using the Visa credit cards in the United Kingdom starting January next year. The ban on the use of credit cards is owing to the high transactional fees. The announcement concerning the ban was made by the e-commerce giant on Wednesday and Visa isn’t exactly pleased by the turn of events. This is what the emailed statement said,
“As a result of Visa’s continued high cost of payments, we regret that Amazon. co. uk will no longer accept UK-issued Visa credit cards as of 19 January 2022. “
The What and Why
The decision of the e-commerce giant to stop accepting Visa-issued credit cards in the UK was met with some amount of displeasure and disapproval from Visa which was of the opinion that through this decision Amazon was indeed restricting user choice. Whether these same users are happy about the high transactional fees is another question altogether. Although Amazon will stop accepting Visa credit cards, customers will be free to use Visa debit cards, Mastercard, or Amex credit cards, or Eurocard. Thus it cannot be said that the company is completely restricting consumer choice and freedom.
The move by Amazon might be influenced by Brexit to some extend. Ever since Brexit, the usual EU-enforced fee cap is no longer applicable. This fee cap is charged by the ones issuing the card. This decision made by the e-commerce giant has indeed managed to ruffle some feathers within the government. Because, if the reports are to be believed the UK Trade commission did call on the government to devise ways to improve the UK-EU trade agreement while also asking analysts to prod the British regulators to divert their focus and attention to the credit card market fees. The main concern here is the fact that if Amazon with all its resources finds it difficult to wade through the fees, then the smaller businesses will have it much worse. Thus the government must devise some ways to improve the situation since it can have a significant impact on the overall competitiveness and efficiency of businesses in Britain.
Responses On Twitter
Any news that creates a stir will definitely find a place in Twitter town, with Twitterati pouring their brains over the new topic of discussion. Quite naturally, the news of Amazon not accepting Visa credit cards did attract the attention of the Twitter folk, and soon enough “Visa” rocketed to the trending list. Let us flip through a few reactions and responses.
They won't accept PayPal so they won't get my custom.
And Amazon exploits their workers.
I can't think of any reason to ever use Amazon and now I have one more reason not to (and I don't even have a Visa credit card).
EBay, I like EBay.
— 🖤💛❤️ Lynne Murphy (@lynnemurphy1) November 17, 2021
Amazon in the Uk made £20.63 billion in total revenues during 2020, up from £13.73 billion in 2019. I don't think visa credit charges will make any dent at all in their earnings. Billionaires really trying to squeeze every penny for their bonuses.
— Leigh Way (@LA_Way) November 17, 2021
What in the fuck. We know Visa charges high fees to everyone and yes, it's a problem but so is a massive corporation not paying TAXES. Why don't we flip it and stop purchasing from Amazon. Problem solved.
— 🌎 (@maplespices) November 17, 2021
Amazon no longer accepting visa credit cards. A Brexit effect or unrelated? pic.twitter.com/QSOanJp243
— David Henig 🇺🇦 (@DavidHenigUK) November 17, 2021
A taste of freedom:
1. “We need Brexit to give our companies freedom”
2. Visa puts up fees post Brexit
3. Amazon bans the use of UK issued Visa cards for its customers https://t.co/Rp12yL4HSF
— Nick🇬🇧🇪🇺🇺🇦 (@nicktolhurst) November 17, 2021
The Biden Administration is now giving visas to more Communist Chinese propagandists masquerading as journalists. We stopped this charade. Espionage and propaganda will follow. Bad for America and for real press freedom.
— Mike Pompeo (@mikepompeo) November 17, 2021
Amazon says it is not longer taking UK issued Visa credit cards as payment because of high Visa fees! pic.twitter.com/vOqQf6n1LU
— Chi Chi Izundu (@blondeafro) November 17, 2021
Hey, another #brexit shaft. Amazon just announced from 19th Jan 2022 they won't accept Visa Credit card payments because we're not in the EU. How many more will follow suit? Remember the lies about a stronger economy? Our money will spend anywhere? We won't even get credit now.
— Andrew Oldham (@bongosherbert) November 17, 2021
Amazon to stop accepting visa – a pretty bold move I'd say. pic.twitter.com/arKjzh34iP
— Dominic Frisby (@DominicFrisby) November 17, 2021
Amazon to stop allowing people to use Visa credit cards from Jan (Visa debit, mastecard & amex still fine)
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.
— Martin Lewis (@MartinSLewis) November 17, 2021
— Blackwell's (@blackwellbooks) November 17, 2021