Amazon Could Drop Visa as Credit Card Partner

Amazon Could Drop Visa as Credit Card Partner

Amazon Could Drop Visa as Credit Card Partner

Amazon.com Inc is considering dropping Visa as partner for its U.S. co-branded credit card. The move comes as the e-commerce giant dropped Visa credit cards in the United Kingdom, starting next year. Visa debit cards can still be used.

Amazon is in talks with several payment networks including Mastercard, American Express and Visa, as it looks to renew its current deal or secure better terms in a new one. Amazon calls it a standard process for reviewing its co-branded credit card agreement, a spokesperson told Bloomberg.

Amazon has introduced surcharges on customers using Visa credit cards in Singapore and Australia in recent months, citing high fees. Then after Brexit, an EU-enforced cap on fees charged by card issuers is no longer in place in the UK, meaning providers are free to hike their fees. So Visa increased its fees substantially last month, charging 1.5% for credit card payments made online or over the phone between the UK and EU, and 1.15% for debit card transactions. These fees were previously 0.3% and 0.2%, respectively.

For now Amazon cards are still Visa cards in the U.S. and if you want to sign up, there’s a bonus up to $200.

One thought on “Amazon Could Drop Visa as Credit Card Partner

  1. That’s is so odd to hear as I thought AMEX by far has the highest fees. Same thing happened with Costco a while back when they dropped AMEX as a partner and now only accept Visa. I guess behind the curtain different cards charge different fees to different retailer and there is no standard across the board? I guess that kills the moto of Visa & Mastercard is accepted everywhere unlike AMEX.

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