Just heard this on R2 news at midday.
They will still accept Visa Debit cards, blaming 'high transaction costs'. I thought credit and debit card payments had a similar costs to the retailer these days anyway ?.
Why can't they just slap a small levy on credit card payments ?.
People will just use Klarna, if they haven't already.
Andrew
I did wonder if it was yet another scam, as I seem to be getting a deluge of them ATM, mostly telling me my Norton (alternatively spelt Notron!), or McAfee subscriptions are about to expire, or have expired etc (don't actually use either), but seeing as how it's been on R2, I assume it's genuine.
Reluctant to use my debit card for internet purchases, as six months ago one of the small on-line garden nurseries I'd bought from was hacked and all their customers' card details and e-mail addresses stolen. Had over £400 charged directly to my bank account and used on a gambling web site, Virgin Bet or something similar, over about 30 minutes. Fortunately my bank managed to claw it all back. Probably also accounts for all the recent scams. With luck they'll give up in time.
Do Amazon accept Paypal?
It depends what agreement they've negotiated with the payment networks, but for small scale businesses debit cards have a fixed cost per item (20p or something). Credit cards are a percentage fee.
The law does not allow that. The Consumer Rights (Payment Surcharges) Regulations 2012.
I'm a bit surprised they're going for Visa and not Amex, given I understood that always had higher retailer fees.
And maybe Klarna will make a loss on the transaction, but eat it up because fintech unicorns.
Theo
Why can't credit card companies reduce the charges that they levy to the retailer, irrespective of whether the retailer passes that charge onto the purchaser?
If Visa's charges are higher than other credit card organisations' charges (eg Mastercard), people will switch to using those cards, and Visa will suffer. Oh dear, how sad, never mind ;-)
No way I'd use a debit card for an online purchase for just the reason you'd mentioned. No Section 75 protection. I assume that Visa will feel the pain of losing Amazon's business, but Amazon will also feel the pain of lost business by those who don't have an alternative Mastercard credit card, and won't use a debit card. Maybe they'll both realise they have to sort this out for their own good.
Perhaps Amazon could consider a system whereby something could be paid for by a BACS transfer. True, it wouldn't have Section 75 protection, but it would only be a one-off transaction, and couldn't be used for further purchases.
I have an Amazon Platinum Credit Card run by Newday, don't use it all the time.
I would assume amazon have as pretty secure system that small retailers might not have. But it is a bit of a concern as we as one lab in one department in one london university spend £100s a month sometimes £1000s per month on amazon. Hope our finance department sort something out or amazon does before xmas. Then there's Santa wonder how he'll do his ordering for christmas 2022
I heard theres a shortage of reindeers due to brexit too.
Seems it is down to leaving the EU. UK credit card companies can now charge what they like. Hence Amazon only refusing UK Visa cards. Fees in the EU being controlled.
Must admit I'd not surprised. Since Covid, credit cards can be used for tiny amounts. If the fees are a percentage, then tiny too - but the work involved much the same.
Remind us, how many years have we been outside of the EU?
Care to attribute anything else to leaving the EU? Covid perhaps?
The same article said, Visa "claimed that on average it takes less than
0.1% of the value of a purchase."It doesn't sound a lot and as some articles suggest it's more Amazon flexing its muscles.
It would help if you actually read the article you linked to. In full. And then ask yourself - 'why only UK Visa cards?'
The full quote is:- 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.
You are so easily conned when it comes to things Brexit related.
That's only part of it - the merchant sevrice charge.
There is also a transaction fee - from 2% upwards depending on the business. They are being economical with the truth.
Which is a fixed amount, normally charged per month.
Then please find a "more truthful" article.
Which makes the credit card preferable for the seller on small transactions - hence why some places have a minimum spend limit for debit cards.
Perhaps because Amazon's own c.card is affiliated with Mastercard?
Just looked at the web site (having never heard of it)... sounds hideous, and no mention of Amazon?
Our newsagent prefers Debit Cards
>
RBS are changing from visa to mastercard debit cards and their credit cards are mastercard as well now....
Santander have made the same transition.
visa must be greedy bastards
I don't use Amazon all that much, and I can switch to a Mastercard I have.
Adjective: egregious: Conspicuously and outrageously bad or reprehensible e.g. "Amazon have an *egregious* tax avoidance policy."
And HSBC are moving, or have moved, to VISA !!
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