Amazon announced Wednesday it will no longer accept Visa credit cards issued in the United Kingdom starting January, citing high transaction fees charged by the company.

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.

“The cost of accepting card payments continues to be an obstacle for businesses striving to provide the best prices for customers. These costs should be going down over time with technological advancements, but instead they continue to stay high or even rise,” an Amazon spokesperson told MarketWatch. “As a result of Visa’s continued high cost of payments, we regret that Amazon.co.uk will no longer accept UK-issued Visa credit cards as of 19 January, 2022.”

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Visa increased its surcharge to 1.5% of the transaction value for credit card payments in the U.K. and EU, made online or over the phone, up from 0.3%. It also changed the charge for debit card transactions to 1.15%, up from 0.2%, Reuters reported.

Visa said it was hoping to reach a deal with Amazon in the near future so its customers could still use their credit cards without issue.

“We are very disappointed that Amazon is threatening to restrict consumer choice in the future,” a Visa spokesperson told MarketWatch. “When consumer choice is limited, nobody wins.”

The battle between Amazon and Visa has triggered the U.K. Trade and Business Commission to demand the government improve the trade agreement between the U.K. and the EU.

“If Amazon can’t make it work, with all their resources and ability to navigate legislation to avoid costs, then small businesses have no chance and so the government must improve the UK-EU trade and cooperation agreement to keep British businesses competitive,” Tamara Cincik, from the U.K. trade commission, told Reuters.

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Amazon said it is considering dropping Visa as a partner on their co-branded credit card in the United States, according to Reuters, but no official decision has been made.

Original Location: Amazon to ban Visa credit cards in United Kingdom

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