The company says it is in talks with Visa about finding a possible solution to continue to allow Brits to shop with their Visa credit cards.
Original story: Amazon is set to remove the option to pay with Visa credit cards from its website later this week on January 19.
The US tech giant has decided to pull the option over the high fees that Visa charges for processing transactions.
Millions of Brits are likely to be affected by the change, which Amazon first announced back in November.
Described as a game of ‘corporate chicken’, a deal between the two firms will need to be agreed in the next 48 hours to change the outcome.
The exact numbers aren’t known, but it’s estimated 89% of Brits shop at Amazon and the company’s subscription service, Amazon Prime, has about 21 million UK subscribers.
If the ban goes ahead, it means shoppers using Visa cards – like those issued by Barclaycard or Natwest will have to swap to a different credit card, like Mastercard, or use a debit card instead.
In an email to customers, Amazon announced: ‘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.
‘You can update your Prime membership here, and if you have any subscriptions on Amazon.co.uk, you can update them on the ”manage your subscription” page here.
‘We know this may be inconvenient, and we’re here to help you through this transition so you can continue enjoying Amazon’s low prices and wide selection.
‘Please visit this help page for more information on payment methods, or go directly to your account.’
In March last year, it emerged Visa was planning post-Brexit fee increases for UK customers ordering from the European Economic Area.
Visa hiked interchange fees from mid-October, meaning the fees of 0.20% for debit cards and 0.30% for credit cards was upped to 1.15% and 1.50%, respectively.
The interchange rates for business cards is now 1.60% while corporate and purchasing cards has been revised to 1.80%.
Visa said it was ‘very disappointed that Amazon is threatening to restrict consumer choice in the future’.
‘We have a longstanding relationship with Amazon, and we continue to work toward a resolution, so our cardholders can use their preferred Visa credit cards at Amazon UK without Amazon-imposed restrictions.’
The following payments will still be accepted by Amazon for transactions after the above date:
* Visa debit cards
* Mastercard credit and debit cards
* American Express
* Eurocard
* UK-based Maestro cards
* Amazon gift cards or vouchers
You can also use a PayPal Cash card, business debit Mastercard or the virtual PayPal Key credit card – but you cannot pay for purchases on Amazon using PayPal directly.
Yes, not all of Amazon’s services are going to be affected by the ban.
Certain Amazon subsidieries, like the Audible audiobook platform, will continue to accept Visa credit cards.
Similarly, Amazon’s physical stores will also continue to accept Visa credit cards and Amazon Business customers are also unaffected.
If you are using a Visa credit card, you’ll need to make a change on your account.
You do not need to make a purchase to update your payment details – to change them, simply add a new card or remove an existing one from your Amazon wallet.
You can find your Amazon Wallet on site under your account details.