Visa falls after Amazon says it will stop accepting cards issued by the company in the UK
Visastock slipped on Wednesday after Amazonannounced it will stop accepting cards issued by the company in the UK.
- The ban will take effect in January 2022. Amazon cited high transaction fees as its reason.
- "These costs should be going down over time with technological advancements, but instead they continue to stay high or even rise," Amazon said.
Visa stock slipped on Wednesday after Amazon announced it will stop accepting cards issued in the UK by the payment processor, citing its high transaction fees.
The online retail giant said the ban will take effect on January 19, 2022 and will only apply to Visa credit cards, not debit cards. Bloomberg was first to report the news.
"The cost of accepting card payments continues to be an obstacle for businesses striving to provide the best prices for customers," an Amazon spokesperson said in an email to Insider. "These costs should be going down over time with technological advancements, but instead they continue to stay high or even rise."
Visa stock tumbled 6.7% to $200.71, hitting the lowest level since February.
The company earlier this year hiked its merchant fees for certain credit card transactions, mostly online. This increase cut into revenue potential for merchants, especially since many are relying on e-commerce to stay afloat during the pandemic.
"We are very disappointed that Amazon is threatening to restrict consumer choice in the future," a Visa spokesperson said in an email to Insider. "When consumer choice is limited, nobody wins."
On Wednesday, Amazon made its announcement via email to its UK clients, acknowledging the disruption it will cause.
Non-Visa credit cards such as Mastercard, Amex, and Eurocard will continue to be accepted, according to the email.
Still, other payment stocks also fell Wednesday, with Mastercard dropping 4.4%, American Express off 0.6%, and Discover Financial Services down 1.3%.
- Billionaire investor Mark Mobius says he's been able to get his money out of China, but investing in the country is still a 'dilemma' amid national security laws
- The Carnival cruise passenger who went overboard and remains missing was on his first cruise and it became his 'happy place,' his fiancée said
- Elon Musk told Chinese Tesla workers in a late night speech that their hard work 'warms my heart' — 6 weeks after some complained about bonus cuts
- Major train accidents that India witnessed in last 15 years
- Odisha rail crash: Rescuers try to raise buried coach, death toll at 238
- Largest road networks in the world – India beats China to take the second spot
- Manoj Bajpayee joins the league of on-screen lawyers like Pankaj Tripathi, Shriya Pilgaonkar & more
- List of famous things to buy in Lonavala