Amazon: What can I still use to pay with online after Visa credit card ban?

Words by ITV News Multimedia Producer Suzanne Elliott

Online retail giant Amazon has said it will stop accepting UK-issued Visa credit cards from January.

While customers will still be able to use debit cards, including Visa, and non-Visa credit cards, the decision to bar UK Visa credit cards will affect millions of shoppers.

Amazon has emailed customers to confirm it will stop accepting payments made using Visa credit cards issued in the UK “starting January 19 2022”.

What does this decision mean for customers? Will other forms of payment be blocked on Amazon in the future? Will more retailers follow Amazon's lead? And what are your other payment options when shopping at Amazon?

Why has it come in?

Credit card companies charge a merchant (Amazon in this case) a levy every time the card is used to make a payment. Amazon said it made the decision to block Visa credit cards due to “the high fees Visa charge for processing credit card transactions”.

Brexit is likely to be behind the issue, after Visa raised interchange fees (additional cross-border costs) beyond the level permitted in the EU.

Brussels capped these fees for transactions inside the EU in 2015, but since the the limit no longer applies to payments between the UK and the bloc, British consumers are no longer protected by the cap.

Visa said it is disappointed by the decision by Amazon, which it claims is “threatening to restrict consumer choice”.

How will Amazon's decision affect me?

Customers with a stored card on their Amazon accounts, including Prime subscriptions, will need to update their details.

While Visa debit cards will still be accepted, many customers prefer to pay for online purchases with a credit card as they offer greater protection for online shopping.

In many cases you are able to claim your money back if something goes wrong, for example if an item is faulty or damaged or it never arrives, if you bought it with a credit card. Debit cards do not offer the same protection, and customers are usually encouraged to purchase bigger, more expensive, items on a credit card.

Will it affect other card services?

That depends on individual companies. Currently, American Express and Maestro remain unaffected, as too are Visa debit cards. Mastercard is also fine, despite earlier this year applying higher fees to transactions made on a UK card.

Mastercard told ITV News: "Mastercard credit, debit and prepaid cardholders can continue to use their cards on Amazon.co.uk as normal."

But, as the EU cap on credit card charges is now no longer applicable to UK credit cards, in theory, other companies could choose to follow Visa's approach.

Will other companies ban Visa?

In theory, yes. If other retailers, including holiday and rail companies, are being excessively charged when customers use Visa credit, they may too choose to pull UK Visa credit card use, or, alternatively, pass on the additional cost to the consumer.

What payment methods can I use?

Maestro and American Express and Visa debit card are still fine to use.

You can also use gift cards and vouchers.

Amazon does not officially accept PayPal, although you can get around this, by using a PayPal Cash Card, PayPal Key or PayPal credit cards, as well as purchasing Amazon gift cards using your PayPal account.

Is the decision by Amazon and Visa final?

The decision could yet be overturned. Visa said they were in negotiations with Amazon to find a resolution.