Amazon will accept Visa cards without fees after the two companies came to an agreement after several months of uncertainty.
The companies also agreed to collaborate on product and technology initiatives for "innovative payment experiences", Visa said on Thursday.
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 added: "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."
Credit card fees have been a growing source of tension between Amazon and Visa.
Last year, Amazon started charging customers in Australia and Singapore who use Visa credit cards a 0.5 per cent surcharge.
Under the agreement, Amazon's amazon.co.uk site in Britain will no longer turn off Visa credit cards. Customers in Australia and Singapore will no longer pay the surcharge for using Visa.
Last month, Amazon's British website backed away from plans to stop accepting Visa credit cards issued in the UK, saying the two sides were talking.
Amazon had announced the move in November, blaming "the high fees Visa charges for processing credit card transactions".
Any credit card transaction involves various fees, such as an "interchange fee" that the shopper's bank pays to the retailer's bank and other costs like service and technology charges.
It was not clear which fee was the focus of the UK dispute.
David Beard, editor-in-chief and personal finance expert at financial comparison site, 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.
"Releasing the initial news that Amazon were going to cease accepting Visa now appears like a tactic to get a better deal with the global payments company. This highlights the sheer power of the retailer and demonstrates the lengths they'll go to, to increase 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."
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