Amazon has reached a worldwide deal with Visa to continue accepting payments from its credit cards through its stores, ending a tense, months-long stand off over rising transaction fees.
“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 said in a statement on Wednesday evening, but declined to share any specifics on the deal.
The surcharge applied to the use of Visa credit cards on Amazon’s Australian and Singaporean sites will be lifted as of Thursday, while Amazon’s threat to block Visa credit card payments on its UK store has been dropped, the company confirmed to the FT.
A Visa spokesman said the company 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”.
Amazon has recently experimented with alternative payment methods for buying goods on its stores, including “buy now, pay later” facilities.
Relations between the two companies had deteriorated over the past year as Amazon protested sharp increases to Visa’s online transactions fees.
Last October, Visa began charging 1.5 per cent of the transaction value for credit card payments made online between the UK and EU, and 1.15 per cent for debit card transactions, up from 0.3 per cent and 0.2 per cent, respectively.
The rate increase prompted Amazon in November to announce it would stop accepting Visa credit cards as a form of payment on its UK stores in mid-January, a dramatic escalation in the negotiations between the world’s largest online retailer and the world’s biggest payments provider.
Last month, Amazon said the UK ban had been postponed while the parties worked on a “potential solution”, suggesting a deal was close. Visa chief executive Al Kelly had previously said Amazon’s negotiating tactics had been “odd” and “unfortunate”.
Daily newsletter
#techFT brings you news, comment and analysis on the big companies, technologies and issues shaping this fastest moving of sectors from specialists based around the world. Click here to get #techFT in your inbox.
Stay connected with us on social media platform for instant update click here to join our Twitter, & Facebook
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
