Amazon customers blocked from using Visa credit cards

MILLIONS of Amazon customers will be blocked from shopping on the website next year after it banned the use of Visa credit cards in Britain.

The online retailer said it would be forced to stop accepting the credit cards from Jan 19, blaming Visa’s “high fees”.

Customers will still be able to use Visa debit cards and non-visa credit cards such as Mastercard or American Express.

Credit cards provided by Barclaycard, HSBC and Vanquis use Visa’s payment system, with Barclaycard alone having around 10million credit card customers.

Amazon also offers its own credit card, which is operated by Mastercard.

Visa, the biggest issuer of debit cards in the UK, said it was “very disappointed” Amazon was threatening to “restrict consumer choice” by banning its cards.

The public row comes after payment firms were able to raise their fees when Britain left the EU.

Rules from Europe introduced in 2015 capped the so-called interchange fees that banks charge retailers when shoppers pay by debit or credit card.

The fee that retailers pay for accepting Visa credit card payments has risen from 0.3 per cent to 1.5 per cent for transactions between the UK and the EU online.

Martin Lewis, the finance expert, said that “because Visa is increasing transaction rates now that the EU cap no longer applies post Brexit” this was a “possible negotiating tactic for Amazon to get its fees reduced”. However, Amazon insiders insisted the decision was not about any one rule change. A spokesman for Amazon said that “costs should be going down over time with technological advancements, but instead they continue to stay high or even rise”.

James Andrews, of money.co.uk, a comparison website, said: “Hopefully, Visa and Amazon work out their differences. In the meantime it would be wise to check your cards now – and think about switching to a Mastercard.” Google searches for Mastercard soared after Amazon’s announcement.

Roughly nine in 10 British shoppers use Amazon, according to research firm Mintel, with around 40 per cent using its Prime subscription service.