Amazon has reached a deal with Visa to continue accepting payments from its credit cards, after several months of tensions over rising transaction fees.
According to the Financial Times, the surcharge that was applied on Amazon’s Australian and Singaporean sites has also been lifted, and it has dropped the threat to discontinue Visa credit card payments on its UK store.
Relations between the two companies has deteriorated in recent months, after Amazon issued a notice to its customers that it would stop accepting Visa credit cards in the UK from January 2022 due to high fees.
Just a few days before the ban was due to come into effect however, Amazon shelved the plans, and instead announced it was working on a “potential solution” to enable customers to continue using their Visa credit cards.
“We’ve recently reached a global agreement with Visa that allows all customers to continue using their Visa credit cards in our stores,” the company reportedly said in a statement on Wednesday evening, but declined to share any specifics of the deal.
The Financial Times detailed that Visa said it was “pleased” to have reached a “broad, global agreement”. The company said the deal included a “joint commitment to collaboration on new product and technology initiatives to ensure innovative payment experiences for our customers in the future”.
Visa began charging 1.5% of the transaction value for credit card payments made online or via phone between the UK and the EU, and 1.15% for debit card transactions. This was an increase from 0.3% and 0.2%, respectively.
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