Amazon.com announced on the 17th that it will stop accepting credit cards for visas issued in the United Kingdom from next year. The reason is the high fees.
In recent months, Amazon has also charged customers who use Visa cards in Singapore and Australia with additional fees for high visa fees.
The suspension of acceptance of UK Visa cards is scheduled for January 19, next year. Amazon has criticized these card companies’ fees: “It should go down as technology advances, but they’re keeping it at a high level or even raising it.”
According to analysts, the retail industry has tolerated high fees in return for capturing Visa’s vast customer network, but things could change.
Laura Hoi, a equity analyst at Hargraves Landsdown, said Amazon’s decision was “a significant turning point in the payments services industry.” Amazon said it might want to attract more customers to its payment system.
Hui said, “Ultimately, this chicken game, where customers switch to Amazon’s payment system or visa succumbs, I think the company has the upper hand as long as Amazon benefits from either fall.
William Douglas has worked as financial analyst until his retirement. He is a well-known research director and portfolio manager for more than 5 years. After many years in the market, he dedicated all his time to write articles highlighting different financial problems and world news. He also cover news from all over the world.