Visa’s chief executive has hit back at Amazon’s dramatic move to block UK Visa credit cards, according to reports.
In an interview with the Financial Times, Al Kelly denounced claims by the e-commerce giant that the ban was driven by the high cost of Visa payments.
“I find it quite strange that they claim to have done this because of the high cost of their acceptance in the UK. It’s just absolutely inaccurate, ”he said.
On Wednesday, Amazon said it will stop accepting payments made with UK Visa credit cards from early next year. The retailer also said it is considering ditching the payments giant as a partner for a co-branded U.S. card.
The move sent shock waves through the UK consumer and retail landscape.
Kelly called the standoff between the two companies a “tough negotiation,” but said he still expects it to be resolved.
“What’s different here,” he explained, “is that Amazon has unfortunately decided to take on the trading challenges we have in public and oddly chose to threaten to punish consumers. ”
Earlier this week, an Amazon spokesperson said the cost of accepting card payments was a “permanent hurdle for businesses” and that “those costs are expected to decrease over time with advancements in technology, but instead, they continue to stay high or even increase ”.
In the UK, more than half of all payments are made by card, with Visa dominating 82% of the market, according to a PPRO study.
Visa was not the only payment processor to increase its interchange rates for payments between the UK and the EU after Brexit this year. MasterCard also announced price increases. For digital payments, the fee rose to 1.15%, from 0.2% for debit transactions and 1.5% for credit card transactions, from 0.3%, according to Bambora, a company of payment.