Amazon U-turn on Visa credit card ban
17th January 2022 14:24
by Myron Jobson from interactive investor
The US leviathan says it is working with the credit card company on a potential solution.
Commenting, Myron Jobson, Personal Finance Campaigner, interactive investor, says: “Amazon (NASDAQ:AMZN)’s attempt to strong-arm Visa (NYSE:V) into reducing its transaction fees has failed in spectacular fashion and has left the online retail giant with its tail between its leg. Visa effectively called the bluff, dug its heels in and Amazon was first to flinch. Amazon has now taken a more conciliatory tone, claiming to be working with the credit card company on a potential solution.
“Visa's scale means that Amazon had more to lose if it went ahead with the ban. Amazon simply had to weigh up the potential cost of abandoned purchases and the potential loss of traffic to its website because of the ban with the cost of paying Visa’s transaction fees - and the scales tipped in Visa’s favour.
“There may be more twists and turns to come in the saga, but for now, Visa credit card users can continue to flash their plastic on Amazon.”
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