Amazon customers will still be able to keep using Visa credit cards across all its sites after the two businesses finally reached a deal in their long-running dispute.
The online shopping giant had been due to stop these types of payments from January 19 in a row linked to "high fees" charged by Visa.
Amazon had already suspended the ban on January 17, just days before it was due to come into force, and said it was trying to confirm a new deal with Visa.
In an update today, both sides said a "global agreement" had now been reached.
The move would have affected payments made on Amazon from Visa credit cards issued in the UK.
Amazon said: "We've recently reached a global agreement with Visa that allows all customers to continue using their Visa credit cards in our stores."
Visa adding: "This agreement includes the acceptance of Visa at all Amazon stores and sites today, as well as a joint commitment to collaboration on new product and technology initiatives to ensure innovative payment experiences for our customers in the future."
Amazon announced plans to stop payments from UK Visa credit cards back in November 2021, after the card provider confirmed plans to increase interchange fees in March.
This saw its rate shoot up from 0.3% to 1.5% for online credit card payments, and for debit card transactions, the rate rose from 0.2% to 1.15%.
Are you relieved a deal has been reached between Amazon and Visa? Let us know your thoughts in the comments below.
Data experts from OnePoll had previously warned how Amazon could face losing nearly £1.4billion from UK shoppers if it blocked Visa credit card payments.
A study of 2,000 adults found that 13% intend to either slash the amount of their purchases, or totally quit buying from the corporation.
Amazon has around 48 million UK customers, while Visa is the largest card issuer in the UK and Ireland.
David Beard, editor-in-chief and personal finance expert of Lendingexpert.co.uk, said: “This is a welcome relief for Amazon customers and a sensible move for the retailer who should always put their customers before their profits.
“Not accepting Visa would have meant consumers were going to be forced to pay with a debit card or apply for a new Mastercard.
“Paying for items with a debit card means customers wouldn’t have benefited from Visa credit card perks like cheap borrowing if they had a 0% interest period, cashback, rewards and extra protection for purchases over £100.”
Amazon customers in Singapore and Australia also had to pay a surcharge if they used a Visa credit card to purchase goods.
However, this surcharge will now be removed from today as well.
