Amazon to ban Visa credit cards in the UK from January. The company is also considering dropping Visa as partner on its U.S. co-branded credit card – Reuters

Amazon have announced it would stop taking payments from Visa credit cards issued in the UK, citing the high cost imposed by the card company.

An email to customers said: “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.”

Customers were advised to update their payment options.

Amazon said: “The cost of accepting card payments continues to be an obstacle for businesses striving to provide the best prices for customers. These costs should be going down over time with technological advancements, but instead they continue to stay high or even rise.”

The move comes after Visa increased fees last month. The Financial Times reported earlier this year that Visa would raise fees charged on transactions between the UK and EU from 0.3% to 1.5% from October.

Visa statement: “We are very disappointed that Amazon is threatening to restrict consumer choice in the future. When consumer choice is limited, nobody wins. We have a long-standing relationship with Amazon, and we continue to work toward a resolution.”

James Andrews, personal finance editor at money.co.uk, said: “Hopefully, Visa and Amazon work out their differences before the ban comes into force on January 19.„

However. Amazon.com Inc is also considering dropping Visa as partner on its U.S. co-branded credit card, according to Reuters.

The move marks an „important turning point in the payments industry,” said Laura Hoy, equity analyst at Hargreaves Lansdown, adding Amazon may hope to drive more customers to its own payments system.

„Ultimately, we think Amazon has the edge in this game of chicken – whether customers adopt its own payment system or Visa gives in and lowers its fees, either is a win for the retail giant,” Hoy said.