Starting from next year, Amazon.com Inc (AMZN.O) will no longer accept Visa Inc (VN) credit cards issued in the UK. The e-commerce giant said on Wednesday that was due to the payment processor’s high transaction fees.
After Brexit, the UK was no longer capped on EU interchange fees, allowing card networks to increase their costs.
As a result, Visa increased the interchange fees charged to businesses for processing digital transactions between the UK and the EU earlier this year.
The Amazon spokesperson said in an emailed statement: “Due to the still high cost of Visa payments, we regret that Amazon.co.uk no longer accepts Visa credit cards issued in the UK. United from January 19, 2022.
The decision by Amazon has caused the UK Trade Commission to urge the government to reform the UK-EU trade deal as calls for British regulators to look into the fees in the credit card market heightens.
“If Amazon can’t make it work, with all their resources and ability to navigate legislation to avoid costs, then small businesses have no chance and so the government must improve the UK-EU trade and cooperation agreement to keep British businesses competitive,” Tamara Cincik, UK Trade and Business Commission stated.