Amazon to stop accepting Visa credit cards

Global e-commerce giant Amazon will not accept Visa credit cards issued in the United Kingdom from 19 January_ the online retail giant has said.

It said the move was due to high credit card transaction fees but said Visa debit cards would still be accepted.

Visa said it was "very disappointed that Amazon is threatening to restrict consumer choice in the future".

Amazon said: "The cost of accepting card payments continues to be an obstacle for businesses striving to provide the best prices for customers."

The online retailer said costs should be going down over time due to advances in technology_ "but instead they continue to stay high or even rise".

An Amazon spokesperson said the dispute was to do with "pretty egregious" price rises from Visa over a number of years with no additional value to its service.

Amazon is offering £20 for Prime customers to switch from using Visa to an alternative payment method_ and £10 for other customers.

Visa said in a statement it was "very disappointed that Amazon is threatening to restrict consumer choice in the future. When consumer choice is limited_ nobody wins."

It said it had "a long-standing relationship with Amazon" and that it was trying to resolve the situation so customers would be able to use Visa credit cards with Amazon UK.

Amazon declined to say how much Visa charges the retailer to process transactions made on credit cards.

Visa also declined to comment though it claimed that on average it takes less than 0.1% of the value of a purchase.