(TheRedWire.com) – Whenever you swipe a credit card, someone pays for the cost of using the privilege of credit. It’s not just the consumer who gets charged. It’s the business accepting the payment. Transaction fees take a good chunk out of their profit margins for many companies, particularly on low-profit goods and services. Since the United Kingdom (UK) left the European Union, credit card transaction fees increased dramatically in the case of Visa. It’s to the point where Amazon said enough is enough.
The news comes after the U.K.'s departure from the European Union, which got rid of mandated caps on credit card transaction fees.
Amazon said consumers are still allowed to use Visa debit cards, Eurocards, Mastercards , and American Express cards.https://t.co/Z6KGynqLfC
— Washington Examiner (@dcexaminer) November 18, 2021
Beginning on January 19, 2022, Amazon will no longer accept Visa credit cards in the UK. They say the fast-paced rise of transaction fees is an obstacle for businesses. The massive company argued the cost should be going down, not up, as technology improves and makes companies more efficient.
Before Visa increased its fee to 1.5% of each transaction, online surcharges were 0.3%. The massive credit card processor also increased debit fees from 0.2% to 1.15%. As a result of the war between Amazon and Visa, the UK Trade and Business Commission is demanding the government improve a trade agreement between the UK and EU, which many say is the core problem. Some observers say if Amazon and Visa can’t make it work with all of their resources, small businesses will have no chance in the UK.
Visa hopes to reach a deal with Amazon in the near future so its cardholders can continue to make purchases on the platform without any issues. However, Amazon is reportedly considering dropping Visa as a co-branded credit card partner.
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