Amazon might also ditch Visa credit cards in the US
After announcing that it will stop receiving a credit card issued by a visa in the UK, Amazon is now considering an end of his partnership with the company on a co-branded credit card in the US.
According to a new report from Reuters, the ecommerce giant is currently in talks with Visa, MasterCard, and American Express to review the co-branded credit card agreement.
If you often shop at the Amazon e-commerce platform, you might have seen promotions for the Amazon Prime Rewards visa signature card at checkout with an Amazon $ 200 gift card offer after approval. In addition to co-branded cards with Visa, the company also has a partnership with American Express for American American American Express cards that offer an Amazon gift card for $ 125 instead.
An Amazon spokesman described this talk with three large credit card companies to Reuters as part of the standard process to review the co-branded credit card agreement.
Increase in credit cards up
Credit card processing costs usually range from 1.5 to 3.5 percent of each transaction and additional costs can complicate Amazon and other online retailers and small businesses to offer their goods and services at cheaper prices to consumers.
Responding to the higher costs of Visa, Amazon recently introduced additional costs to customers using Visa Credit Cards in Singapore and Australia. Meanwhile in the UK, the visa began collecting 1.5 percent of the transaction value for credit card payments made online or by telephone between England and the EU. This is because the hat applied by the EU at the cost charged by a credit card issuer is no longer in England after Brexit.
While the previous retailers must deal with the processing fees from credit card companies to gain access to their large user networks, this can change as indicated by the current Amazon negotiations with Visa, American Express and MasterCard. Even though the ecommerce giant can plan to launch its own payment system, it might also use a large size of its customer base to get a better deal of credit card companies when it comes to transaction fees.
We have to wait and see how negotiations between Amazon and a play visa but for now, you can still use your visa credit card when shopping for handling Black Friday and Cyber Monday on the platform.