Visa Calls Amazon’s Ban of Its U.K. Credit Cards ‘Odd’: FT

(Bloomberg) -- Amazon.com Inc.’s decision to stop accepting Visa Inc. credit cards in the U.K. was “odd,” and the retailer’s criticism that Visa’s fees are too high “inaccurate,” Visa Chief Executive Officer Al Kelly told the Financial Times. 

Amazon’s announcement on Nov. 17 that it would stop accepting Visa cards in the U.K. from January was a “threat to punish customers” and was part of “challenging negotiations” with Visa over payment rates, he said. 

MasterCard Inc. has similar fees to Visa in the U.K. but wasn’t singled out, the newspaper reported. 

“I find it quite odd that they’re claiming they did this because of the high cost of acceptance of these in the U.K.” Kelly said. “It’s just absolutely inaccurate.”

Read More: Amazon Tumbles on Amazon Ban in U.K. as Fight on Card Fees Expands

The dispute is over more than just the fees Visa charges on transactions, the paper said. Amazon considers it unreasonable for Visa to impose additional charges against fraud, the FT reported. 

Amazon customers can still use Visa debit cards, MasterCard and American Express Co. credit cards, and Visa credit cards issued outside of the U.K., the retailer said this week, offering users 20 pounds ($27) off their next purchase if they nominate a debit or non-Visa credit card as their default payment method. 

Amazon has already imposed a surcharge for those using Visa credit cards in Singapore and Australia.

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