Amazon and Visa credit cards

[ianch99]

Originally Posted by Chris

Wrong. Do we believe Martin Lewis speculating, or a BBC reporter who has asked both parties directly and received a consistent answer from both?

It’s simple really.

Oh ..

Visa set to raise fees after removal of EU cap post-Brexit

Visa is to force through a series of post-Brexit fee increases which could place fresh pressure on consumers and small businesses struggling to deal with the financial impact of the coronavirus pandemic.

According to people briefed on the plans, Visa will in October raise its “interchange fees” — a levy it charges on behalf of banks for every debit or credit card payment that uses its network — on cross-border transactions between the UK and EU.

The payment processor also plans to increase so-called scheme fees on UK-EU transactions, as well as charge more for domestic payments using British company credit cards, added the people.

“With the move to cashless and ecommerce accelerating, it’s vital that small business and consumer sentiment isn’t stifled by rising card costs, just as we’re trying to bounce back from a severe recession,” said Craig Beaumont, chief of external affairs at the Federation of Small Businesses.

Although Brussels capped interchange fees for all transactions inside the EU in 2015, the UK’s departure on January 1 means the limit no longer applies to payments between Britain and the bloc.

From October, Visa will charge 1.5 per cent of the transaction value for credit card payments made online or over the phone between the UK and EU, and 1.15 per cent for debit card transactions, up from 0.3 per cent and 0.2 per cent respectively.

[Julian]

Originally Posted by spiderplant

Because when you buy from Amazon UK you are actually paying a company in Luxembourg.

And the cost of those transactions is the same with both Mastercard and Visa so why is it only Visa that is an issue?

Originally Posted by ianch99

Oh ..

Visa set to raise fees after removal of EU cap post-Brexit

And yet, this dispute hinges on domestic fees, not cross-border ones. The interchange cap is irrelevant.

An Amazon spokesperson said the dispute was to do with "pretty egregious" price rises from Visa over a number of years with no additional value to its service.

And

Amazon and Visa said any changes in fees had nothing to do with Brexit.

Both Visa and its rival Mastercard have raised the so-called interchange fee on cross-border transactions between businesses in the UK and the European Union following Brexit.

The dispute between Amazon and Visa is to do with the fees the credit card company charges Amazon for its services in the UK.

https://www.bbc.co.uk/news/business-59306200



---------- Post added at 15:47 ---------- Previous post was at 15:45 ----------

Originally Posted by spiderplant

Because when you buy from Amazon UK you are actually paying a company in Luxembourg.

You are buying from a subsidiary of Amazon headquartered in Luxembourg, but Sterling transactions within the UK are processed within the UK and are subject to credit card company domestic charges. As above, they are unaffected by post-Brexit changes in the cross-border interchange rate.

[ThunderPants73]

We should all show Amazon and old Jeff some sympathy, things are probably a bit tight for him these days.

[Sirius]

Originally Posted by Jaymoss

Martin Lewis definitely

The BBC are totally untrustworthy biased and as bad as the Daily Mail.

Agreed

Its not a brexit issue at all, all that did is remove a limit.
This is Visa deciding to rake in yet more money, brexit is not forcing them to do this at all.
Visa made $21.8 Billion profit in 2020, so clearly they are in need of more money