Amazon to stop accepting Visa credit cards from January 2022
The online retail giant will not accept payments from UK Visa credit cards citing high fees. What are the alternatives?
Amazon announced it would no longer be accepting payments from Visa credit cards issued in the UK from 19 January, 2022.
The multinational company stated “high fees Visa charges for processing credit card transactions” as the reason behind its decision.
Visa debit cards can still be used for payment and this does not affect credit cards from other providers like Mastercard and Amex.
Visa hit back, saying it was “very disappointed that Amazon is threatening to restrict consumer choice in the future”.
Alternatives to Visa
If you’re thinking of switching credit card providers, Finder has put together some options to help you find the right card.
Chris Lilly, Finder credit card expert, said: “If you have a large expenditure on the horizon, and won’t be able to clear your balance straight away, deals offering 0% interest on purchases can offer big savings. M&S, MBNA, Tesco, Sainsbury’s and others all have Mastercards offering over 20 months of 0% interest on purchases, with no annual fee attached.
“If you can clear your balance in full each month, then you could avoid interest and earn rewards at the same time.
“The Amex Platinum Cashback Everyday Card (charging no annual fee and offering 0.5% or 1% cashback depending on how much you spend) and its big sister, the American Express Platinum Cashback Card (charging a £25 annual fee and offering 0.75% or 1.25% cashback depending on how much you spend) earn you cashback on virtually all your day-to-day spending. Both cards offer lucrative welcome bonuses, too.”
The Amex Platinum Cashback Everyday Card has a representative APR of 24.5% variable, and the Platinum Cashback Card’s is 29.8%.
Compare all credit cards in our comparison table where you use a filter to show cards on the Mastercard network.
Amazon’s £20 incentive
Amazon stated: “The cost of accepting card payments continues to be an obstacle for businesses striving to provide the best prices for customers.
“These costs should be going down over time with technological advancements, but instead they continue to stay high or even rise.”
Visa has had a long relationship with Amazon that looks to be on choppy waters now.
As an incentive, Amazon is offering £20 for Prime customers to switch from using Visa to an alternative payment method, and £10 for regular customers.
Amazon has launched its own credit card, the Amazon Platinum Mastercard with 21.9% APR, which offers some attractive rewards to customers.
If you’re a regular Amazon shopper this card will benefit you the most. You can get 1.5 points for every £2 spent on the site (1000 points = £10 Amazon gift card), three months of 0% interest on new purchases and a £20 Amazon gift card.
Amex Platinum Cashback Everyday Card representative example: when you spend £1,200 at a purchase rate of 24.5% (variable) p.a., your representative rate is 24.5% APR (variable).
American Express Platinum Cashback Card representative example: when you spend £1,200 at a purchase rate of 24.5% (variable) p.a. with a fee of £25 per annum, your representative rate is 29.8% APR (variable).
Amazon Platinum Card representative example: when you spend £1,200 at a purchase rate of 21.94% (variable) p.a., your representative rate is 21.9% APR (variable).
