Suddenly, a new issue arose: “Is Amazon going to ditch Visa credit cards in the US”. After stating that it will no longer accept Visa credit cards issued in the United Kingdom, the e-commerce company was said to contemplate eliminating the credit card manufacturer. Just because of the amazon card payment processing system and after losing some of its largest customers to Mastercard this year, Visa has been dealt another blow by Amazon, which will stop accepting its cards in January.
According to Visa, as of January 19, Visa credit cards issued in the United Kingdom will no longer be accepted by the online shop.
As a result, Barclaycard and HSBC customers will be unable to make purchases on Amazon using their Visa-powered credit cards. For example, in the case of Visa and Mastercard, the technology enables companies and financial institutions to make payments. They make money by charging card issuers and merchants’ transaction fees.
There is no direct influence on our prices as customers, but these fees contribute to a retailer’s overall costs, leading to an increase in prices shortly. Businesses and financial institutions also impact which payment providers companies choose, determining where we may use our debit and credit cards.
Why Amazon Stopped Accepting Visa Credit Cards in the UK?
Despite the widespread acceptance of Visa and Mastercard, Amazon’s move to stop accepting Visa credit cards stands out as an exception. With credit card processing fees running between 1.5% and 3.5% of each transaction, most businesses take these charges from major credit card providers.
As a result, Amazon has stopped accepting Visa credit cards issued in the United Kingdom and, according to recent reports, may even abolish Visa in the United States. This suggests that Amazon believes the costs are too high.
If you’re a regular Amazon shopper and are searching for a credit card, you should check to see if the card issuer uses a payment network that is compatible with your preferred method of payment. As a result, debit cards issued by Visa and Mastercard, widely accepted in stores and online, are not subject to these restrictions.
You have a Visa or MasterCard debit or credit card, your card will function precisely as before if your card issuer decides to switch to another payment network. Payment facilitators such as PayPal may necessitate that you update your credit card details regularly.
Visa debit cards can still be used to pay for Amazon purchases by customers. Mastercard, American Express, and Eurocard will all be accepted in the United Kingdom.
Masab Farooque is a Tech Geek, Writer, and Founder at The Panther Tech. He is also a lead game developer at 10StaticStudios.
When he is not writing, he is mostly playing video games