LONDON – Amazon announced Monday that it has paused its plans to stop taking Visa payments in the UK. The move was meant to take place on Wednesday but has been delayed as the companies continue with talks.
Amazon Halts Stop to Visa Payments in UK
In a statement, an Amazon spokesperson told The Mac Observer:
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.
Striking a similar tone, a Visa spokesperson told The Mac Observer:
Amazon customers can continue to use Visa cards on Amazon.co.uk after January 19 while we work closely together to reach an agreement.
Neither comment provided any timeframe within which the talks might be concluded.
Interchange Fees Prompts Original Decision
The decision was originally announced in November 2021. The online retail giant objected to the increased interchange fee – the amount that the merchant is charged for every credit card and debit card transaction. The payment network is allowed to raise this following the UK’s exit from the European Union. The bloc imposes a cap on such fees. However, as BBC News noted, both companies insisted that their dispute was unrelated to Brexit when the issue first emerged last year. Mastercard has also increased its interchange fee