Amazon will stop accepting payments from UK-registered Visa credit cards from 2022 due to 'high fees charged to process transactions'
Amazon revealed today it will stop accepting payments made using Visa credit cards issued in Britain from next year - sparking a bitter war of words between the firms.
UK customers buying products will still be able to use Visa debit cards, Mastercard and Amex credit cards as well as Visa credit cards issued outside of Britain.
But the Seattle-based firm has now sent out a mass email to say it will no longer allow Britons to make payments on UK Visa credit cards from January 19, 2022.
The online retailer hit out at Visa by saying it will no longer accept the credit cards due to 'the high fees Visa charges for processing credit card transactions'.
But Visa struck back, saying it was 'very disappointed that Amazon is threatening to restrict consumer choice, adding: 'When consumer choice is limited, nobody wins.'
MoneySavingExpert founder Martin Lewis said today that the move was 'because Visa is increasing transaction rates now the EU cap no longer applies post Brexit', adding: 'It's a possible negotiating tactic for Amazon to gets its fees reduced.'
And CNBC technology expert Ryan Browne added: 'It could be a way to get some bargaining power over Visa to lower fees. Smaller retailers aren't in a position to negotiate, but Amazon - given its size - might be. Visa is clearly bruised by this decision, though, and it could damage their relationship in the long run.'
Visa would not say how many UK cardholders it has for commercial reasons, and Amazon declined to comment on how many customers will be impacted by the decision - but the figure is likely to be in the millions.
Merchants have long disputed with payment processors over transaction fees - with one recent example being US supermarket chain Kroger, although it later U-turned.
Kroger stopped accepting Visa credit cards at its 142 Smith's Food and Drug Stores outlets from April 2019 - before reversing the decision six months later in October.
Some customers received a notification from Amazon this week about the payment changes
Some customers received a notification from Amazon this week after making purchases, which said that 'starting 19 January 2022, we will no longer accept Visa credit cards issued in the UK' due to the high fees charged by Visa to process the transactions, as per the report.
A Visa spokesman told MailOnline today: 'UK shoppers can use their Visa debit and credit cards at Amazon UK today and throughout the holiday season.
'We have a long-standing relationship with Amazon, and we continue to work toward a resolution, so our cardholders can use their preferred Visa credit cards at Amazon UK without Amazon-imposed restrictions come January 2022.'
An Amazon spokesman told MailOnline: 'The cost of accepting card payments continues to be an obstacle for businesses striving to provide the best prices for customers.
'These costs should be going down over time with technological advancements, but instead they continue to stay high or even rise.
'As a result of Visa's continued high cost of payments, we regret that Amazon.co.uk will no longer accept UK-issued Visa credit cards as of January 19, 2022.
'Customers can continue to use all debit cards (including Visa debit cards) and other non-Visa credit cards to shop on Amazon.co.uk.
'With the rapidly changing payments landscape around the world, we will continue innovating on behalf of customers to add and promote faster, cheaper, and more inclusive payment options to our stores across the globe.'
Amazon's email to customers this week said: 'We're writing to notify you of an upcoming change to Amazon.co.uk.
'Starting January 19, 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.
'You can still use debit cards (including Visa debit cards) and non-Visa credit cards like Mastercard, Amex, and Eurocard to make purchases.
'Please update your default payment method now, or add one of these new, eligible payment methods if you do not have one.
'You can update your Prime membership here, and if you have any subscriptions on Amazon.co.uk, you can update them on the ''manage your subscription'' page here.
'We know this may be inconvenient, and we're here to help you through this transition so you can continue enjoying Amazon's low prices and wide selection.
'Please visit this help page for more information on payment methods, or go directly to your account.'
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