Amazon UK and Visa reach last-minute settlement on credit card ban

By Oliver Smith on Monday 17 January 2022

Digital Banking

Great news for fintechs like Capital On Tap and Tymit.

Amazon UK and Visa reach last-minute settlement on credit card ban
Image source: CardMapr/Unsplash.

Millions of credit cards will continue to be accepted on after the eCommerce giant apparently reached a last-minute settlement with issuer Visa.

Just two days before the expected ban on Visa credit cards, Amazon today announced the ban “will no longer take place on January 19.”

“We are working closely with Visa on a potential solution that will enable customers to continue using their Visa credit cards on”

While Amazon isn’t clear what this solution is, the reason behind its original decision in November 2021 to ban the cards was the high interchange fees that Visa was charging.

“Should we make any changes related to Visa credit cards, we will give you advance notice. Until then, you can continue to use Visa credit cards, debit cards, Mastercard, American Express, and Eurocard as you do today,” Amazon wrote to its customers today.

It's great news for the ecosystem of fintechs that rely on Visa to issue their credit cards, including Tymit and Capital On Tap.

The last-minute nature of the decision, however, means many customers may have already moved elsewhere for their credit card needs, likely increasing the pressure on Visa to reach a compromise with Amazon.

“We are thrilled for our customers that Visa and Amazon were able to come to an agreement. Small businesses rely on many Amazon products and services and we are happy that we can continue to support the growth of those small businesses," Alex Miles, UK MD for Capital on Tap told AltFi.

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