Amazon is considering dropping Visa as a partner for its Amazon Prime Rewards credit card, just two days after announcing it would stop accepting Visa credit cards issued in the U.K., Reuters reported Wednesday (Nov. 17).
While no plans are finalized, Amazon is considering operating its Prime credit card with American Express or Mastercard instead, Reuters reported.
Representatives from Visa, American Express and Mastercard all declined to comment for the Reuters report.
See also: UK-Issued Visa Credit Cards No Longer Accepted by Amazon Starting 2022
Reports suggest the tussle between the two commerce heavyweights is related to Great Britain’s exit from the European Union in 2020, as Great Britain no longer has to follow the EU’s strict limits on what fees card-issuers can charge retailers.
According to Reuters, Last month, Visa raised its fees for telephone and online transactions between the U.K. and EU countries from 0.3% to 1.5% for credit cards, and raised debit card fees to 1.15%, up from 0.2%.
Advertisement: Scroll to Continue
Reuters reported that analysts said the industry average is between 1.5% and 3.5%.
Analyst Laura Hoy at Hargreaves Lansdown told Reuters the pricing dispute marks an “important turning point in the payments industry.”
“Ultimately, we think Amazon has the edge in this game of chicken,” Hoy told Reuters. “Whether customers adopt its own payment system or Visa gives in and lowers its fees, either is a win for the retail giant.”
In regards to the U.K. restrictions, a Visa spokesperson said in a statement that the company is “disappointed that Amazon is threatening to restrict consumer choice,” and that the company is working towards a resolution with Amazon to avoid card restrictions in 2022.
You may also enjoy: Visa-Amazon UK Spat Puts Interchange Rates Back in the Spotlight
