Amazon to stop accepting Visa credit cards

Have you heard yet? Amazon have announced they will no longer accept Visa Credit Cards from 19 January 2022

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What has happened?

Yesterday, 17/11/2021, Amazon emailed all UK consumers to inform them they will not be able to use their Visa credit cards on Amazon from 19 January 2022. It's a big move that risks irritating customers but Amazon have cited the "high fees" that Visa charges for processing credit card transactions as their reason for doing this.  

What does this mean for you?

If you use Amazon you will need to update your default payment method now to one that is now suitable, either a debit card or a Mastercard or American Express credit card. You'll need to do this for any subscriptions too so that you continue to receive products or keep watching, reading, and listening to Amazon services.

 If you want to use a credit card you may need to take out a new Mastercard or American Express credit card. 

Why use a credit card over a debit card?

There are many reasons you may want to use a credit card. Maybe you want to get rewards points, or maybe it's just to build up your credit score. Or maybe you want the extra protection you get from buying online with a credit card; Section 75 of the Consumer Credit Act 1974 gives you extra protection on online purchases between £100 and £30,000. 

Check out one of our blogs for everything you need to know about credit cards.

What did Amazon say to customers?

“Starting 19 January, 2022, we will unfortunately no longer accept Visa credit cards issued in the UK, due to the high fees Visa charges for processing credit card transactions. You can still use debit cards (including Visa debit cards) and non-Visa credit cards like Mastercard, Amex, and Eurocard to make purchases. Please update your default payment method now, or add one of these new, eligible payment methods if you do not have one.”

This is a big move from Amazon against one of the leading providers behind credit cards, it remains to be seen how Visa reacts and, more importantly, how customers react to Amazon.

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Author: mo

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Category: News

Tags: Your Money