Amazon has suspended plans to block UK Visa credit cards during talks.
Written byTimes Magazine
Amazon scrapped plans to block Visa credit card payments in the UK this week as the two sides continue to resolve a fee dispute. "The expected change in the way Visa credit cards are used on Amazon.co.uk will no longer occur on January 19," Amazon said.
Visa said it was "working closely together to reach an agreement."
Amazon said last year that the cost of paying with Visa was a "barrier" to offering customers the best prices. But Visa has accused Amazon of threatening to limit consumer choice. "When consumer choice is limited, no one wins," Visa said.
Neither company indicated when the talks could end. In an email to customers Monday, Amazon said it was working with Visa on a "potential solution that would authorize customers to continue using their Visa credit card.
EU fee limits for card issuers will no longer apply in the UK after Brexit.
Both Visa and rival Mastercard have increased so-called cross-border transaction fees between businesses in the UK and the European Union since Brexit. However, Amazon and Visa last year said their dispute had nothing to do with Britain's exit from the EU.
It was played publicly and privately, now the two heavyweights of the group are going to another round.
Amazon has the upper hand in this match. With the announcement approaching this deadline, many customers have shifted their primary payment method from Visa to Amazon.
However, the lifting of the deadline and the fact that no new deadline has been set suggests the deal was done. Neither Amazon nor Visa has said much to gauge how close they are to a compromise.
This dispute is more than just a payoff. It's also about control. Remember, Amazon takes a different route to Mastercard, behind Amazon's winning cards.
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