Amazon strikes ‘global’ truce with Visa over credit card fees

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Amazon has reached a global agreement with Visa to continue accepting payments from its credit cards through its stores, ending a tense months-long standoff over rising transaction fees.

“We recently entered into a global agreement with Visa that allows all customers to continue to use their Visa credit cards in our stores,” the company said in a statement late Wednesday, but declined to share details of the agreement. OK.

The surcharge on the use of Visa credit cards on Amazon’s Australian and Singaporean sites will be lifted from Thursday, while Amazon’s threat to block Visa credit card payments on its UK store has been lifted. discontinued, the company confirmed to the FT.

A Visa spokesperson said the company was “pleased” to have reached a “comprehensive and broad agreement”. The company said the agreement includes a “joint commitment to collaborate on new products and technology initiatives to ensure innovative payment experiences for our customers in the future.”

Amazon has recently experimented with alternative payment methods for purchasing goods in its stores, including “buy now, pay later” features.

Relations between the two companies had soured over the past year as Amazon protested steep increases in Visa’s online transaction fees.

Last October, Visa began charging 1.5% of the transaction value for credit card payments made online between the UK and EU, and 1.15% for debit card transactions. throughput, compared to 0.3% and 0.2%, respectively.

The rate hike prompted Amazon to announce in November that it would stop accepting Visa credit cards as payment in its UK stores in mid-January, a dramatic escalation in negotiations between the biggest retailer in online and the world’s largest payments provider.

Last month, Amazon said the UK ban had been postponed while parties worked on a “potential solution”, suggesting a deal was close. Visa chief executive Al Kelly previously said Amazon’s trading tactics had been “strange” and “unfortunate”.

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