Amazon and Visa have reached a deal that will see the online retail giant continuing to accept the payment network’s credit cards. The agreement comes after months of stalemate and growing concerns from customers globally.
Amazon and Visa Reach Agreement Over Credit Card Fees
Amazon threatened to stop accepting Visa credit cards in the United Kingdom late last year. The disagreement with Visa centered on fees, namely processing fees that Visa charged when using its credit cards. Interestingly, Visa debit and prepaid cards and credit cards from other payment networks (American Express, Mastercard, Diner’s Club, Discover, etc.) had no issues..
In November, Amazon emailed UK users of the site, blaming the cost of processing the payments. The retail giant state that “Starting 19 January 2022, we will unfortunately no longer accept Visa credit cards issued in the UK, due to the high fees Visa charges for processing credit card transactions.”
The Visa ban was scrapped by Amazon in January, as the retailer sought more time to negotiate in good faith with Visa. Now, the two sides have reached an agreement, with Amazon set to continue to accept Visa credit cards worldwide.
“A Broad, Global Agreement”
A Visa spokesperson told the Guardian that “Visa is pleased to have reached a broad, global agreement with Amazon. This agreement includes the acceptance of Visa at all Amazon stores and sites today, as well as a joint commitment to collaboration on new product and technology initiatives to ensure innovative payment experiences for our customers in the future.”
“We’ve recently reached a global agreement with Visa that allows all customers to continue using their Visa credit cards in our stores,” added an Amazon spokesperson. “Amazon remains committed to offering customers a payment experience that is convenient and offers choice.”
Agreement Is Good News for Chase
The Amazon-Visa agreement is good news for Chase, which issues two co-branded Visa credit cards with Amazon: the Amazon Prime Rewards Visa Signature and the Amazon Rewards Visa credit cards. Those rewards credit cards provide enhanced cash back with Amazon and Whole Foods purchases, gas, dining, drugstores, and more. Both cards also come with an Amazon gift card upon successful application.
Related Article: New Amazon Prime and Chase Gift Card Offer
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