Amazon and Visa announced an agreement to allow customers of both companies to use their cards on all Amazon sites without additional fees.
According to the agency APthe agreement comes after both companies disputed over the collection of commissions in the use of credit cards.
In countries such as Australia and Singapore, Amazon began charging a 0.5 percent purchase fee, while in the UK it was outright anticipated that Visa-issued cards could not be used on the British site.
In November 2021, Amazon said it would stop accepting Visa card payments due to “high fees charged by Visa to process credit card transactions.”
Each purchase made with a credit or debit card generates a commission, which is generally transferred to the final price of the productand therefore, it is paid by the consumer and not by the business.
Commissions for the use of credit cards as a means of payment range between 1.3 and 3.5 percent. The percentage varies according to the regulatory provisions of each country.
The AP report does not provide details about the agreement between Amazon and Visa.
However, making the use of Visa credit cards more expensive at Amazon could represent a serious blow to the finances of both companies.
only in the UK and according to official data from the US regulatorBritons spent $31.9 billion in 2021, up from the $26.5 billion sold in 2020.
Although it is not possible to determine how many sales of those amounts were from Visa cards, it is estimated that Visa is about 50 percent of the credit card market.