Why Amazon will no longer be accepting UK Visa credit cards from January

Amazon will stop accepting payments made using UK Visa credit cards next year.

The online retail giant blamed “the high fees Visa charges for processing credit card transactions” for the decision to bar Visa credit cards issued in the UK from January 19.

Customers will still be able to use debit cards, including Visa, and non-Visa credit cards, it said.

Visa said it was "disappointed" at Amazon's decision and said they were working towards a resolution.

An Amazon spokesman added: “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.

“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 January 19 2022.

“With the rapidly changing payments landscape around the world, we will continue innovating on behalf of customers to add and promote faster, cheaper, and more inclusive payment options to our stores across the globe.”

Money Saving Expert Martin Lewis said Brexit was behind the decision, with Visa hiking up its fees as the EU cap no longer applies. He added that "it's a possible negotiating tactic for Amazon to gets its fees reduced".

A Visa spokeswoman said: “UK shoppers can use their Visa debit and credit cards at Amazon UK today and throughout the holiday season.

“We are very disappointed that Amazon is threatening to restrict consumer choice in the future.

“When consumer choice is limited, nobody wins.

“We have a long-standing 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 come January 2022.”