Millions of people’s credit cards will stop working on Amazon’s UK website from this week – unless there is an 11th-hour resolution to a bitter dispute between the retailer and payments giant Visa.
In November, Amazon told customers that from 19 January it would stop accepting payments made with UK-issued Visa credit cards, in what has been described as a “game of corporate chicken”.
It is not known how many people are affected by the payment ban, though in March 2021, Mintel said 89% of Britons shopped at Amazon, and its analysts estimated Amazon Prime membership in the UK at about 21 million. Last month it was claimed that Amazon faces losing nearly £1.4bn from UK shoppers as a result of its move.
There is speculation, however, that a last-minute agreement could be reached between the two sides. On Friday, Amazon and Visa declined to provide an update on negotiations.
Amazon blamed its decision on “the high fees Visa charges for processing credit card transactions”.
The move potentially inconveniences millions of people who use a Visa credit card issued by providers including Barclaycard to buy items on the website or pay for their Amazon Prime membership.
The retailer said it would continue to accept all debit cards (including Visa debit cards) and non-Visa credit cards, including Mastercard-branded ones and American Express.
