Amazon u-turn as it SCRAPS ban on Visa credit cards

Amazon u-turn as it SCRAPS ban on Visa credit cards

AMAZON's ban on Visa credit cards will NOT come into force this week, giving millions of shoppers more time to swap their payment method.

The US retail giant announced last year that it would block Visa credit card payments from the start of 2022.

It meant if you use a Visa credit card when shopping online with Amazon, you needed to add a different payment method before Wednesday, January 19.

In an email sent to Amazon customers seen by The Sun, Amazon said the shake-up will "no longer take place on January 19".

It said: "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. "

Customers are taking to social media to report that they have received emails too from Amazon about the u-turn.

One customer said: "I had one [email] saying they were in discussion with Visa to try and sort it out and that they won't be putting the credit card ban from the 19th of this month."

Another tweeted after receiving the email: "You could still use a Visa Debit Card after the 19th."

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The Sun approached Amazon for comment.

It means you have more time to avoid disruption to your account, such as your Prime membership being paused or cancelled.

You can change your details on the "manage your subscription" page in your Amazon account.

Some customers were offered a £20 credit incentive to switch to a new card.

When it comes into play, ban will not affect the use of Visa debit and customers are free to continue using that card as a payment option. 

Consumers can also still use credit cards issued by other payment firms, like Mastercard or Amex.

Amazon blamed the decision on the high fees it has to pay to Visa for each transaction.

Visa hiked its interchange fee for online credit card payments to 1.5% last year – up five times from the previous 0.3% rate.

Announcing the ban last year, Amazon 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 January 19, 2022."

Amazon said that fees "should be going down over time with technological advancements, but instead they continue to stay high or even rise.”

However Visa said the decision would limit consumer choice.

In a previous statement it said: "When consumer choice is limited, nobody wins. 

“We have a long-standing relationship with Amazon, and we continue to work toward a resolution, so our cardholders can use their preferred Visa credit cards at Amazon UK without Amazon-imposed restrictions come January 2022."

Visa cards have been ditched by major banks including Santander and First Direct, with customers sent new Mastercards to replace them.

Earlier this year Paypal introduced new fees for EU orders.

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