After deciding to drop Visa as a payment option in the U.K. effective Wednesday (Jan. 19), Amazon has reversed its position and emailed customers to announce that the ban has been reversed, according to multiple news outlets Monday (Jan. 17), including Bloomberg.
Amazon had said it was making the move due to the high fees charged by the payment processor. Visa’s pushback runs parallel to a series of merchants’ rebuttals regarding payment networks’ transaction fees.
Mastercard and Visa are the world’s biggest payment networks, and card fees have long been a sticking point between merchants and banks. Visa and Mastercard set the rates merchants pay in swipe fees, most which banks retain, Bloomberg reported.
The Visa ban was first proposed by Amazon in November, which triggered a drop in Visa share prices. The announcement also prompted Visa executives to point fingers at Amazon for penalizing shoppers.
“Amazon is threatening to restrict consumer choice in the future,” Amazon said at the time. “When consumer choice is limited, nobody wins.”
Although the issue between the two behemoths is still being resolved, Amazon U.K. shoppers can use their Visa cards.
“The expected change regarding the use of Visa credit cards on Amazon.co.uk will no longer take place on January 19,” an Amazon spokesperson told Engadget in November. “We are working closely with Visa on a potential solution that will enable customers to continue using their Visa credit cards on Amazon.co.uk.”
“Amazon customers can continue to use Visa cards on Amazon.co.uk after January 19 while we work closely together to reach an agreement,” a Visa spokesman told Bloomberg.