Amazon Inc. an American multinational technology company that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence has established a global treaty with Visa Inc. which is also an American multinational financial services corporation that facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards, debit cards and prepaid cards to address their payment fee dispute.
The dispute happened when Visa increased the charge for online credit card payments between the United Kingdom and the European Union to 1.5 percent, from 0.3 percent. And neither Amazon nor the other companies have revealed how much Amazon pays for processing.
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Amazon blamed the cost of processing payments in an email sent to customers in November. “Starting 19 January 2022, we will unfortunately no longer accept Visa credit cards issued in the UK due to the high fees Visa charges for processing credit card transactions.”
This made Amazon decide to apply a 0.5% surcharge on Visa credit card purchases In Australia and Singapore.
After the agreement has been reached, Amazon will suspend charging Visa users additional costs 0.5 percent tax imposed on Visa credit card transactions in Singapore and Australia, which have been in place for a few months to counteract Visa’s high rates.
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Furthermore, the retail e-commerce giant recently abandoned a previous proposal to discontinue accepting Visa credit cards in the United Kingdom.
“Visa is pleased to have reached a broad, global agreement with Amazon. This agreement includes the acceptance of Visa at all Amazon stores and sites today, as well as a joint commitment to collaboration on new product and technology initiatives to ensure innovative payment experiences for our customers in the future.” According to a Visa spokesperson
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Amazon affirmed: “We’ve recently reached a global agreement with Visa that allows all customers to continue using their Visa credit cards in our stores. Amazon remains committed to offering customers a payment experience that is convenient and offers choice.”