Amazon’s UK website has announced to customers that it will stop accepting payments made with UK-issued Visa credit cards from January 19.
Why is Amazon doing this?
He says the move is “due to high fees charged by Visa for processing credit card transactions.”
Who does this affect?
Millions of people who use a Visa credit card to buy products from Amazon’s UK website and/or pay for their Amazon Prime membership are affected.
However, many will already have updated their payment information after the initial announcement in November and will now be using another card.
Amazon said it would continue to accept all debit cards (including Visa debit cards) and non-Visa credit cards.
Will it definitely happen on Wednesday?
There has been speculation that a deal could still be reached between the two parties, which means the payment ban is changed or removed.
Some customers who have not yet updated their payment information say that after receiving several emails from Amazon urging them to take action, they have not received any emails since Christmas, which makes one wonder if the Visa credit card ban might not be happening after all. . Some also report that when they log into their Amazon account, the urgent warnings to act that were there before appear to have been watered down or removed.
Are there any exceptions to the ban?
The change does not apply to Amazon Business, the retailer’s physical stores, or certain affiliates like Audible.
Will I be disconnected from my Amazon TV viewing if I do nothing? I’m only halfway through Mad Men.
A Prime member who does not update their card details will not be disconnected immediately. When a Prime member’s payment is declined (most likely a monthly payment), they have 30 days to provide a new eligible payment method or their subscription will be cancelled.
But it’s good to pay with a credit card, isn’t it?
Many shoppers choose to use credit cards for large online purchases because of the added protections they offer should something go wrong. Under Section 75 of the Consumer Credit Act, if a retailer goes bankrupt or fails to deliver goods as promised and the items cost more than £100, the credit card provider has an obligation to reimburse the costs.
Amazon’s move is also a blow to people who use their Visa credit card to spread the cost of their expenses, or to accumulate points, airline miles or cash back.
Meanwhile, some people use a so-called “credit builder” credit card to rebuild their credit history, perhaps after experiencing financial problems in the past.
I don’t know what to do – I don’t want to use my debit card on Amazon.
This decision potentially leaves millions of credit card holders with a dilemma. For example, Barclaycard is the UK’s largest credit card company and its credit cards only use the Visa network. An Amazon user who does business with Barclays and has a Barclaycard might decide to switch to the bank’s debit card instead. But it won’t suit some people financially – it means they won’t get what can be a cheap way to borrow money for a short time, along with other benefits. If they don’t want to and don’t have another credit card, their main option if they want to continue using Amazon would be to apply for a Mastercard credit card from another provider. Some may not want to do it or be rejected.
Are people going to leave Amazon for this?
Some shoppers concerned about the ethics of using Amazon may be using the inconvenience caused by this week’s move – if it happens – as an opportunity to end their relationship with the online giant. For years, activists have urged shoppers to boycott Amazon to avoid tax and other issues.
To encourage affected Amazon users to update their payment method, Amazon has offered select people up to £20 off their next purchase. To get it, they must add an eligible debit card, Mastercard, or Amex card to their Amazon account.