Amazon will stop accepting purchases made with Visa credit cards issued in the UK starting next year, the latest escalation by the online retailer in its push against transaction fees charged by payment networks.
Visa shares slumped 5.2% to $203.96 at 9:36 a.m. in New York. This year, they have dropped 6.6%, compared with a 29% increase for the S&P 500 Information Technology Index, and this morning to $ 200.86. This means a monthly reduction of 13.13%.
In response to a request from Report, Visa said that negotiations are underway with Amazon to resolve the issue:
"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."
Visa noted that the ban would not affect card users in Azerbaijan:
"Amazon continues to accept Visa debit and credit cards at locations around the world. Our goal is to ensure that every cardholder can use their Visa card wherever they wish to shop."