A Washington state e-commerce company’s proposed to stop accepting one credit card payment method caused Visa shares to slump on Nov. 17.
Amazon will refuse to serve anyone who tries to shop online with a British Visa credit card from Jan. 19.
An ongoing transaction fee dispute is blamed for the change, which only affects those credit cards issued in the United Kingdom. Visa debit cards will still be accepted. However, this still made Visa’s share price drop by more than 7 percent.
“[We are] very disappointed that Amazon is threatening to restrict consumer choice in the future,” a Visa representative said according to Reuters.
Amazon recently offered a free $27 gift card bonus to Prime members, and $13.50 bonus for other customers, who use a Visa card as their default payment method for any inconvenience caused.
“The cost of accepting card payments continues to be an obstacle for businesses striving to provide the best prices for customers,” an Amazon representative said according to the British Broadcasting Corporation. “[Prices] continue to stay high or even rise.”
Amazon is separately holding talks with Mastercard, American Express and other payment networks to replace Visa as its co-branded credit card partner across the United States.
Although many small firms complain about exorbitant transaction costs for business, few have the financial strength to take on the corporate credit giants.
Many United Kingdom stores do not accept American Express payments, increasing the likelihood of Mastercard becoming the preferred payment method in future.