- Visa is not very reliant on Amazon because of market dominance
- Alternative payment services still far away from competing
A heavyweight battle between two of the world’s most profitable companies has spilled over onto UK shores. Amazon (US:AMZN) announced that from 19 January 2022 it will no longer accept Visa (US:V.) credit cards issued in the UK due to the high fees Visa charges for processing credit card transactions.
The decision by Amazon is the latest in a list of attempts made by large retailers to bring down these fees. In 2014, Walmart (US:WMT) sued Visa for $5bn for charging ‘unreasonably high’ fees and earlier this year Amazon introduced a surcharge on Visa transactions in both Australia and Singapore.