Amazon halts plan to block UK Visa credit cards amid talks

The image is from the same source.

Amazon has dropped plans to block UK Visa credit card payments this week, as the two sides try to resolve a dispute over payment fees.

The change in the use of Visa credit cards on Amazon.co.uk will not take place on January 19th.

Visa said it was working to reach an agreement.

Visa payment costs are an obstacle to providing the best prices for customers, according to Amazon.

Visa accused Amazon of trying to restrict consumer choice. Visa said that when consumer choice is limited, nobody wins.

The companies have not said when the talks might end. In an email to customers on Monday, Amazon said it was working with Visa on a potential solution that would allow customers to continue using their Visa credit cards on Amazon.co.uk.

The EU-enforced cap on fees charged by card issuers is no longer in place in the UK.

Visa and Mastercard have raised the fee on cross-border transactions between businesses in the UK and the European Union.

Amazon and Visa said last year that their dispute had nothing to do with the UK leaving the EU.

They have been talking about it in public and in private, now they are going in for an extra round.

The points in this bout are in favor of Amazon. Many customers would have already switched to another payment method if this announcement had been made a long time ago.

The fact that a new end date has not been set suggests that a deal is close. Amazon and Visa are not saying much to judge how close they are to a compromise.

The dispute is more than just fees. It is also about control. Mastercard is behind Amazon's reward card.

Visa charges Amazon a fee to process credit card transactions.

Visa claimed that it takes less than 1% of the value of a purchase.

The Payment Systems Regulator is concerned about competition in this sector, which is dominated by Visa and Mastercard.

One of its priorities was to promote competition between UK payment systems.

Chris Hemsley said that they will focus more on improving competition between payment systems.

Most of the retail payments currently made using card payment systems are digital, and this is important because we know that the future of retail payments is digital.

Companies.
Amazon.
Personal finance.
Credit cards.