As reported in November, following a dispute between the two companies, Amazon planned to stop accepting payments from UK-issued Visa credit cards this week. The firm has now reversed this decision as part of a last-minute deal.
Originally planned for Wednesday 19th January 2022, Amazon was to stop accepting payments from UK Visa credit cards, citing increased payment processing costs and a lack of progress in negotiations with Visa.
In a new email to customers, Amazon now says it has suspended its plans to remove support for Visa credit cards with discussions between the two companies ongoing.
Analysis – a negotiation tactic
As we suggested in our coverage of this story back in November, this looked a lot like a negotiation tactic from Amazon; a way to force Visa to get back around a table and come up with a long term solution.
There’s no indication of what the long term solution is right now, but don’t be surprised to see this one resolved soon.
The thought of one of the world’s largest retailers doing away with one of the world’s most popular payment methods never sounded like something that would really happen and now it has proven so.