Don’t Worry, Amazon Says It’s Cool With Visa Credit Cards After We Cut a Deal

Amazon will continue to accept Visa credit cards after reaching a global deal, just weeks after the retail giant threatened to stop accepting Visa credit cards in the UK. Bloomberg reports that Amazon will also stop charging Visa credit cardholders additional fees on purchases made in Singapore and Australia.
At the heart of the dispute were the payment fees that Visa charges Amazon each time a customer makes a purchase with one of its credit cards. In the UK in particular, Visa’s credit card interchange fees fell from 0.3% to 1.5% after the UK left the European Union and was no longer bound by EU fee limits.
Bloomberg reports that Amazon had considered switching its lucrative co-branded credit card from Visa to Mastercard to get better terms. Amazon reportedly pursued a deal similar to the one Visa and Costco made on their co-branded credit card, where Costco was offered a break on all processing fees in exchange for the co-branded partnership.
“We recently entered into a global agreement with Visa that allows all customers to continue using their Visa credit cards in our stores,” an Amazon spokesperson said. Bloomberg. A Visa spokesperson added that “this agreement includes Visa’s acceptance in all Amazon stores and locations today, as well as a joint commitment to collaborate on new products and technology initiatives.” Both companies declined to comment CNBC on the exact payment terms of the new agreement.
The dispute between the two giants drew attention last November, when Amazon said it would no longer accept Visa credit card payments in the UK after January 19. However, on January 17, Amazon said it would continue to accept payment through the method after all and was “working closely on a potential solution” with Visa.