Dear MEL Topic Readers,
Amazon to stop accepting Visa credit cards in UK
A credit card allows the cardholder to pay the sellers for goods or services based on the cardholder's accrued debt. The card issuer, such as a bank or credit union, creates a revolving account and grants a line of credit to the cardholder, from which the cardholder can borrow money for payment to a merchant or as a cash advance. The transaction fee is paid by the seller and the fee rate greatly varies by the size and volume of the seller, ranging from below 1% of the purchase amount to up to over five percent. Visa is the world’s largest credit card brand with over a billion cards in circulation, followed by Mastercard. Most of the retailers that accept credit card payments usually take both brands. But recently, Amazon UK announced that it would no longer accept UK-issued Visa credit cards from January 19 because of the high transaction fees. Since many Amazon users register a credit card or two for payment, those who only or mainly use Visa cards are going to have to add or switch to another credit card. Whether this is a near-permanent move or just a threat to Visa to negotiate the transaction fee, it looks like a novel move that might trigger furious battles between credit card brands and retailers.
Enjoy reading the article and learn about a bold move by Amazon UK.
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