Amazon and Visa have finally reached an agreement. In a statement sent to the Reuters news agency, the online sales giant reveals that it will continue to accept Visa credit cards for payments worldwide.
This result of the process comes after Amazon announced in November last year that it would stop accepting Visa credit cards in the United Kingdom. The problem would be the increase in the Visa processing fee.
Amazon’s initial idea was to stop accepting Visa credit cards on January 19 of this year. But before that date arrived, the company backtracked. This is because it was “working closely with Visa on a solution.” And it seems that in about a month this one was found.
“This agreement includes acceptance of Visa in all Amazon stores and websites, as well as a joint commitment to collaborate on new product and technology initiatives,” Visa said in a statement.
What led to the tug-of-war between Amazon and Visa?
According to what has been revealed, Visa has started charging 1.5% (up from 0.3%) of the value of a transaction for online credit card payments between the UK and the European Union. This was in October of last year.
Visa’s transaction processing fee also increased from 0.2% to 1.15%. And it was the combination of both increases that caused the ‘threat’ from Amazon to stop supporting Visa for payments.