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After Singapore & Australia, Now Amazon to stop accepting Visa cards in UK

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abhishek012

After Singapore & Australia, Now Amazon to stop accepting Visa cards in UK:

Amazon will stop accepting Visa cards in the UK from 19 January 2022, the online retail giant has told customers.

It said the move was due to high credit card transaction fees but said Visa debit cards would still be accepted.

Visa said it was “very disappointed that Amazon is threatening to restrict consumer choice in the future”.

Amazon said: “The cost of accepting card payments continues to be an obstacle for businesses striving to provide the best prices for customers.”

The online retailer said costs should be going down over time due to advances in technology, “but instead they continue to stay high or even rise”.

An Amazon spokesperson said the dispute was to do with “pretty egregious” price rises from Visa over a number of years with no additional value to its service.

Visa said in a statement it was “very disappointed that Amazon is threatening to restrict consumer choice in the future. When consumer choice is limited, nobody wins.”

It said it had “a long-standing relationship with Amazon” and that it was trying to resolve the situation so customers would be able to use Visa credit cards with Amazon UK.

Amazon declined to say how much Visa charges the retailer to process transactions made on credit cards.

Visa also declined to comment though it claimed that on average it takes less than 0.1% of the value of a purchase.

‘A blow’

Amazon and Visa said any changes in fees had nothing to do with Brexit.

Both Visa and its rival Mastercard have raised the so-called interchange fee on cross-border transactions between businesses in the UK and the European Union following Brexit.

The dispute between Amazon and Visa is to do with the fees the credit card company charges Amazon for its services in the UK.

This row between two corporate titans is now being played out in full view of their customers.

Amazon says Visa’s fees are excessive, and an obstacle to low prices for consumers. Visa says its fees are competitive, has minimal effect on prices, and that nobody wins when choice is restricted.

Whether or not this row is about fees, or whether that is just a smokescreen is largely irrelevant to consumers using these services. They just know they may have to change the way they pay on Amazon.

Yet, the timing is significant. These messages to customers hit home harder when people are regularly using Amazon for Christmas shopping.

But it also means there is still time before January 19 for a compromise to be reached.

James Andrews, senior personal finance editor, said the move “will come as a blow to the millions of Britons” who use Visa credit cards, including Barclaycard and HSBC customers.

“With American Express also rejected by many UK retailers, that means people looking for rewards on their spending or trying to split the cost of shopping with a 0% purchase card on Amazon will be effectively forced to choose a Mastercard,” he said.

He added that a rewards card that is offered by Amazon is “powered by Mastercard”.

Also Read – Amazon to impose 0.5% surcharge on Visa card payments in Singapore - https://www.desidime.com/discussions/amazon-to-...

After Singapore, Now Amazon to impose 0.5% surcharge on Visa card payments in Australia - https://www.desidime.com/discussions/after-sing...

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Amazon may drop Visa Card as partner on US credit card after UK move - https://www.desidime.com/discussions/amazon-may...

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Countries and corporations playing football with payment networks joy

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https://cdn0.desidime.com/attachments/photos/723379/medium/80884655uhw04.jpg?1637154160
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I think in western countries , using a card is optional, when paying for amazon purchases.. I think they can directly link their bank account to their amazon account, so all transactions are processed directly from the bank without an intermediary or these mdr charges.

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decideaim wrote:

Countries and corporations playing football with payment networks joy

Wildberries – Russia’s Amazon Rival Wildberries or also called Russia’s Amazon (Wildberries), also began charging Visa and Mastercard users an extra fee of 2%. smile

Instigating a 0% commission scheme to commission to encourage customers to use Mir Card (a payment system created by Russia’s Central Bank), SberPay (run by state-owned banking giant Sberbank) or other local options. When using Visa or Mastercard, customers now have to pay a commission of 2% of the cost of the goods they are ordering. To justify their decision, Wildberries said that international payment systems offer far lower commission rates in other countries and claimed this was “obvious discrimination against Russian businesses”.

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abhishek012 wrote:

Wildberries – Russia’s Amazon Rival Wildberries or also called Russia’s Amazon (Wildberries), also began charging Visa and Mastercard users an extra fee of 2%. smile

Instigating a 0% commission scheme to commission to encourage customers to use Mir Card (a payment system created by Russia’s Central Bank), SberPay (run by state-owned banking giant Sberbank) or other local options. When using Visa or Mastercard, customers now have to pay a commission of 2% of the cost of the goods they are ordering. To justify their decision, Wildberries said that international payment systems offer far lower commission rates in other countries and claimed this was “obvious discrimination against Russian businesses”.

So Sberpay is the rupay of Russia

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teriab33 wrote:

I think in western countries , using a card is optional, when paying for amazon purchases.. I think they can directly link their bank account to their amazon account, so all transactions are processed directly from the bank without an intermediary or these mdr charges.

Yes, A2A payment is just started in Western countries.

What is A2A payments ?

Account-to-Account (A2A) payments move money directly from one account to another without the need for additional intermediaries or payment instruments, such as cards.

FIS’ Global Payments Report 2020 predicted that A2A payments will account for 20% of all e-commerce payments, surpassing both credit and debit cards by 2023.

A2A payments, which travel over national clearing systems like the UK’s Faster Payments, eliminate the need for intermediaries and therefore have huge potential to reduce friction, boost efficiency, and deliver at a much lower cost.

In the UK, one in four credit cards can now be paid off using an A2A payment.

At Token, A2A payments doubled every month between March and December last year, and transaction volumes this year are growing 20% month-on-month. Interestingly, the average transaction size is over £400, which suggests that early adopters include merchants selling high-end products, drawn in by the compelling cost savings on offer. In terms of conversion rates, after selecting ‘pay by bank’, 85-95% are moving forward with their payment selection. The drop-out rate has reduced over the last six months as consumers become more comfortable with A2A payments as a choice. Moreover, success rates are in excess of 98% for those that proceed with the payment type.

Considering the timelines -

A2A payments will continue to grow, simply because they’re better. Merchants can have it all – great reach (anyone with a bank account), great conversion rates (exceptional UX with no data entry), and lower costs (no intermediaries).

Another advantage is that merchants can now combine the power of data with the payment; they can harness Open Banking data to assess a customer’s creditworthiness, get insights, and track their loyalty.

Merchants have to adopt en masse of course, but in the UK we’re already moving beyond the early adopters, and once A2A payments are available from all gateways and PSPs there will be a huge boost in numbers.

The question is when will A2A payments drop the term alternative ?

I was involved in internet banking in 2000 and mobile banking in 2010, and it took us 10 years to stop referring to these channels as alternative. I believe with A2A payments it will take half the time, and in five years they’ll no longer be an alternative payment method – just a form of digital payment.

Source - https://www.finextra.com/blogposting/21104/will...

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Hope amazon don’t do it in India otherwise we will stuck with useless rupay card

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decideaim wrote:

So Sberpay is the rupay of Russia

No, Mir Card is the RuPay of Russia.

https://cdn0.desidime.com/attachments/photos/723384/medium/8088523w8ewdMj.jpg?1637155816

I think Sberpay is like GooglePay type apps.

On July 9, 2020, Sberbank officially announced start of SberPay payment system. It allows to carry out and accept payment for goods and services using the Sberbank Online application.

Pay purchases through Sberpaybudet in online stores and in offline points if there the payment terminal of Sberbank is installed.

The State Bank noted that at payment of purchases online through SberPay, clients will not need to spend time for data entry of the card and waiting of SMS confirmation.

Over three and a half million Russians use SberPay for online purchases till May 18, 2021.

Online shopping accounts for most purchases – 54.5% of all transactions. Clients also actively use SberPay at supermarkets and on transport – 19.8% and 13.7% respectively.

SberPay provides a great many Russians with the opportunity to make online payments without needing a card that has been registered as trusted in the SberBank Online mobile app.

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timelord wrote:

Hope amazon don’t do it in India otherwise we will stuck with useless rupay card

One or maybe 2 visa cards is enough to use international transactions.

RuPay card is not useless, the reason you can get the luxury type services in your super premium tier Credit card (last time you said in other post) because very few users use Amex cards or Visa super premium credit cards.

When more and more people start using super premium credit cards (higher MDR charges cards), merchants will stopped accepting those cards. This is a true fact. Last time you couldn’t digest my words when I said that RuPay prepaid card MDR charges have already increased to 2.5% and some merchants already refuse to accept RuPay prepaid cards. smile

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teriab33 wrote:
https://cdn0.desidime.com/attachments/photos/723379/medium/80884655uhw04.jpg?1637154160

americans be like “lemme write you a CHECK

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timelord wrote:

Hope amazon don’t do it in India otherwise we will stuck with useless rupay card

Indians will decide what Amazon can and cannot stuck_out_tongue_winking_eye

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abhishek paji when one use visa or any other card of suppose icici bank then do these websites pay them for users using this card? @abhishek012

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kukdookoo wrote:

abhishek paji when one use visa or any other card of suppose icici bank then do these websites pay them for users using this card? @abhishek012

Yo, large merchants like Amazon have their own payment gateways and the payment gateways pay an amount to the card companies for each transactions.

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abhishek012 wrote:

Yo, large merchants like Amazon have their own payment gateways and the payment gateways pay an amount to the card companies for each transactions.

is there is any RUPAY prepad card working on amazon 20% ?

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demerius2020 wrote:

is there is any RUPAY prepad card working on amazon 20% ?

Question hi galat hain tumhara.

Amazon 20% off load money offer valid only on RuPay Platinum debit card. smile

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abhishek012 wrote:

Question hi galat hain tumhara.

Amazon 20% off load money offer valid only on RuPay Platinum debit card. smile

prepaid card?

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Then Amazon ICICI PAY cards go the rupay route.

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abhishek012 wrote:

Yo, large merchants like Amazon have their own payment gateways and the payment gateways pay an amount to the card companies for each transactions.

how much is this fees generally? and amount paid to visa etc. and not to bank?

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Lets be honest main incentive of using CC are reward points / CB plus 45 days free credit
People do useless shopping for Rps /CB , which indirectly increases profit for these corporations

Remove CC from equation and people will simply stop purchasing unless absolutely necessary

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kukdookoo wrote:

how much is this fees generally? and amount paid to visa etc. and not to bank?

No idea, There is no proper law in India to share what percentage of payments or charges banks, payment gateway companies and card companies charged to merchants.

In UK & Europe. There is a proper law. Banks and card companies are required to share what percentage they charged to merchants or what percentage banks paid to card companies. In UK & Europe everything available in public domain. smile

Earlier, NPCI shared in RuPay circular, RuPay charged between 0.05% to 0.15% to banks for each card transactions but after RuPay debit card transaction is 0%. NPCI removed all circulars from NPCI website. In fact, NPCI also removed RuPay credit card, Prepaid card, Tokenisation, contactless etc all MDR charges info from NPCI website.

I can only guess, Finance Minister Nirmala Sitharaman must have seen all this so she decided to levy 0% MDR on RuPay debit card transactions. Maybe sharing all the details in public domain by NPCI is the biggest mistake because as i read somewhere that RBI says how much bank pays to visa or mastercard is their own matter. RBI does not interfere in this. grinning

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SastaRaju wrote:

Lets be honest main incentive of using CC are reward points / CB plus 45 days free credit
People do useless shopping for Rps /CB , which indirectly increases profit for these corporations

Remove CC from equation and people will simply stop purchasing unless absolutely necessary

https://cdn0.desidime.com/attachments/photos/723426/medium/8089048eCmlfwg.jpg?1637172620

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abhishek012 wrote:

No idea, There is no proper law in India to share what percentage of payments or charges banks, payment gateway companies and card companies charged to merchants.

In UK & Europe. There is a proper law. Banks and card companies are required to share what percentage they charged to merchants or what percentage banks paid to card companies. In UK & Europe everything available in public domain. smile

Earlier, NPCI shared in RuPay circular, RuPay charged between 0.05% to 0.15% to banks for each card transactions but after RuPay debit card transaction is 0%. NPCI removed all circulars from NPCI website. In fact, NPCI also removed RuPay credit card, Prepaid card, Tokenisation, contactless etc all MDR charges info from NPCI website.

I can only guess, Finance Minister Nirmala Sitharaman must have seen all this so she decided to levy 0% MDR on RuPay debit card transactions. Maybe sharing all the details in public domain by NPCI is the biggest mistake because as i read somewhere that RBI says how much bank pays to visa or mastercard is their own matter. RBI does not interfere in this. grinning

After reading all this I came to a single conclusion




Naam se pehle shri aur naam ke baad ji mangta hai stuck_out_tongue

Missing