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Amazon And Visa Are Reconciling In Problem Of Handling Fees

E-commerce Amazon settles with credit card giant Visa. Amazon said on January 17 that it would reverse a previous decision to stop accepting UK Visa credit cards and try to resolve a dispute over processing fees. CNN, The Wall Street Journal and other foreign media reported that in November 2021, Amazon announced to consumers that Amazon.co.uk will stop accepting Visa credit cards starting January 19, 2022, on the grounds that Visa charges for credit card transactions. The exchange fee is too high. Visa said at the time that it was disappointed by Amazon's move and would try to reach a consensus with Amazon. However, the matter turned around before the deadline. Amazon said in an emailed statement on Jan. 17 that it will be negotiating with Visa, and consumers can continue to use Visa credit cards on Amazon.co.uk during this period. The credit card interchange fee rate is set by Visa and paid by the merchant to the card issuer when a consumer uses a Visa credit card to make a purchase, usually as a percentage of each transaction. The Amazon-Visa dispute stemmed from the European Union’s cap on such specific fees, but after the UK completely leaves the EU on December 31, 2020, Visa sharply increased the exchange fee from 0.3% to 1.5%, allowing Amazon to Very dissatisfied with this. The report pointed out that e-commerce platforms such as Amazon are highly dependent on credit cards and other digital payment methods, and are already highly sensitive to costs, and the cost of handling fees is high, resulting in pressure on profitability. Credit card organizations such as Visa and Mastercard usually charge higher processing fees for e-commerce platforms, as e-commerce platforms are prone to e-commerce fraud, resulting in financial losses to credit card companies.
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