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Visa says it will settle dispute with Amazon over credit card fees: continue to cooperate in UK and US markets

via:新浪科技     time:2021/11/22 10:16:13     readed:249

Beijing time on November 22 morning news, it is reported that recently, the global e-commerce giant Amazon and credit card giant Visa because of the cost of a disagreement. Vasant Prabhu, Visa's chief financial officer, said his company hoped to resolve a dispute with Amazon over fees in the UK and move forward with a joint credit card partnership in the US.

On Wednesday, Amazon announced that it would no longer accept payments with its Visa credit card in the UK starting in mid-January. This shows that bilateral cooperation is in crisis.

Visa and Amazon have resolved similar issues in the past and believe they will be able to resolve their differences in the future, Prahu told the media, adding that Visa's hope is that they can come up with a solution for the UK market so that credit card users are not affected.

Mr. Prahu's comments were reported in the media and led to a reduction in Visa's share price, though the changes didn't last long in late trading.

Amazon said in a statement last Wednesday that credit card fees should gradually decline as technology advances and time goes by. However, the fees charged by credit card companies are still high and have even increased.

Some analysts suggested amazon's announcement was more likely a negotiating tactic. Historically, other large retailers have had credit card fee disputes with Visa, with the retailer announcing a suspension of Visa payments in certain product areas, and the retailer and Visa have been able to resolve their fee differences and continue to work together.

In 2016, for example, Wal-Mart Canada announced that it was suspending payments with Its Visa card because it could not reach a fee agreement with the company. Seven months later, the two companies announced they had settled their dispute.

According to media reports last week, the dispute between Visa and Amazon in The UK is rooted in the fact that the UK has left the EU, so the cap on credit card fees in the EU no longer applies to the UK. However, Prahu told the media that such analysis is not accurate.

Mr Prahu said the EU's cap on credit card fees was for cross-border transactions between the UK and EU markets, but the difference between Visa and Amazon was mainly about transactions in the UK.

And in recent months, Amazon has imposed surcharges on customers paying with Visa cards in Singapore and Australia because of the high processing fees charged by Visa. The move is also a sign that the partnership between Amazon and Visa is in trouble.

Last week, some analysts also pointed to Amazon's suspension of Visa card support in the UK as a possible harbinger of more countries to come. Mr. Prahu expressed hope that such fears would not materialize.

Restricting consumers' payment options is not good for merchants either, the Visa executive says, and "it doesn't help me as a consumer if a merchant tells me they can't support my preferred credit card".

Last week, in addition to cancelling the UK deal, Amazon said it was considering cancelling its co-branded credit card deal with Visa in the US, where it has been in talks with both Visa and mastercard.

Visa said it was still in talks with Amazon about co-branded credit cards in the US and hoped the deal would continue. Mr. Prahu said Visa wanted to get its relationship with Amazon back to normal.

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