Amazon has changed its tune after it announced that it would now stop the ban for Visa credit cards issued in the UK.
According to the e-commerce giant, it is now "working closely" with the financial corporation for the new agreement.
Amazon Halts Plan to Block Visa Credit Cards in the UK
Back in November, the tech titan originally said that it would stop accepting Visa credit cards in the United Kingdom starting Jan. 19. Two days before the said start of the ban, it decided to welcome them once again on the platform.
According to Sky News, Visa verified that it is discussing matters with Amazon. The latter clarified that it is ndeed cooperating with the California-based firm to seek a solution for the deal.
The decision will be good news for UK consumers who prefer using Visa cards rather than the other cards. If the ban pushes through, it will result in Amazon's potential loss of nearly $1.6 billion in sales from this country alone.
On the other hand, Visa will also suffer from the ban because the company may potentially lose its customers. Customers may possibly look for another company or service that offers credit cards.
Related Article: Amazon Will No Longer Accept UK-Issued Visa Credit Cards Starting January 19, 2022--Why?
Why Amazon Wants to Ban Visa in the Past
As mentioned earlier, the tension between the two companies started in Nov. 2021.
Gizmodo reported that at that time, the "Big Five" company expressed its disappointment because of Brexit. Visa raised its fees after the nation decided to part ways with the European Union.
To address its concern, Amazon quickly announced its plan to stop accepting credit card payments from Visa in the UK. In return, the latter claimed that the tech giant was "restricting consumer choice" because of this move.
The Seattle-based corporation did not reveal what particular fees it disliked during the commotion. However, it was believed that it was the interchange fees that grew five times the normal fee.
The decrease in the profit margins of Amazon is said to originate from these increased fees. The consumers will get affected by the changes since additional charges will come to the products.
What to Do When Visa Credit Ban Pushes Through?
Since the two parties are still working to settle the deal, there is still a small chance that the ban will push through. If this happens in the future, here is what you can do as an Amazon shopper.
Get a Visa debit card.
Look for another credit card provider.
Change your bank details on Amazon for easy payment options.
Apply for Mastercard
While the last option is doable, This is Money reports that Hargreaves Lansdown senior financial expert Sarah Coles has an important warning. According to her, applying for a Mastercard can have an impact on the user's credit record since many banks have access to credit scores.
Back in March, Visa allowed Bitcoin and other cryptocurrencies to become an official payment alternative, per Tech Times. The company announced this after Ether and Bitcoin rallied a massive stock increase at that time.
For more business-related stories, check our latest article about Forge's deal with Stripe for online payment system management.
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This article is owned by Tech Times
Written by Joseph Henry
