With just two days to go before its impending deadline, Amazon has announced it'll continue to accept Visa cards in the United Kingdom like normal. Late last year, Amazon dropped a pretty big bombshell for its UK shoppers. The company announced in November 2021 that it planned to stop accepting Visa debit card payments as of January 19, 2022.
The problem? Increasing transaction fees. Amazon slammed Visa for its "egregious" fee increases, saying that the cost of accepting Visa cards was "an obstacle for businesses striving to provide the best prices for customers." Visa fired back and denied the accusations, but it didn't do much good. Amazon was saying one thing, Visa was saying another, and UK shoppers were left in the middle with a huge headache ahead of them.
Thankfully, it looks like things are partially patched up between the two companies. Just two days before January 19, Amazon sent an email to its UK customers announcing that its Visa ban is on hold. More specifically, the email reads, "The expected change regarding the use of Visa credit cards on Amazon.co.uk will no longer take place on January 19. We are working closely with Visa on a potential solution that will enable customers to continue using their Visa credit cards on Amazon.co.uk." In other words, it's business as usual.
More Amazon & Visa Troubles Might Lie Ahead
Or is it? While Visa cards will continue to work on Amazon's UK site past January 19, Amazon's wording indicates more troubles could lie ahead. At another point in the email, Amazon says, "Should we make any changes related to Visa credit cards, we will give you advance notice." In a statement given to CNBC, an Amazon spokesperson commented that Visa cards will keep working "while we work closely together to reach an agreement."
In other words, there's still work to be done. Amazon and Visa managed to keep the cards working for now, but it's clear that a permanent solution still hasn't been reached. What'll it take for that to happen? Who knows. Amazon was persistent in its allegations against Visa last year, and Visa was just as adamant countering those. The two may find common ground and agree on things, or we could face another threat of banned Visa cards later on down the road.
As this back-and-forth between the companies continues, it also raises concern about how it may impact Amazon and Visa in the U.S. The quarrel's been limited to the UK for now, but if Amazon and Visa can't come to terms with each other, that's not to say it couldn't expand to other markets. The revoked January 19 deadline is good news for now, but it's also something to keep an eye on in the weeks and months ahead.
Source: CNBC