Don’t worry, Amazon says it’s cool with post-deal Visa credit cards

Tech

Amazon continues to accept Visa credit cards after reaching a global deal, just weeks after the retail giant threatened to stop accepting Visa credit cards in the UK. Bloomberg reports that Amazon will also stop charging Visa credit card holders for purchases in Singapore and Australia.

At the heart of the dispute was the payment fees Visa charges Amazon every time a customer makes a purchase using one of its credit cards. In the UK in particular, Visa interchange fees on credit cards had risen from 0.3 percent to 1.5 percent after the UK left the European Union and was no longer tied to EU rate limits.

Bloomberg reports that Amazon had considered switching its lucrative co-branded credit card from Visa to Mastercard to get better terms. Amazon was reportedly seeking a similar arrangement to the one made between Visa and Costco on their co-branded credit card, with Costco getting a break on all processing fees in exchange for the co-branded partnership.

“We recently reached a global agreement with Visa that allows all customers to continue using their Visa credit cards in our stores,” an Amazon spokesperson said. Bloomberg. A Visa spokesperson added that “this agreement includes Visa’s acceptance across all Amazon stores and sites today, as well as a joint commitment to collaborate on new product and technology initiatives.” Both companies declined to comment on CNBC about the exact payment terms of the new agreement.

The dispute between the two giants drew a lot of attention last November, when Amazon said it would stop accepting payments with Visa credit cards in the UK after January 19. However, on January 17, Amazon said it would continue to accept payment via the method anyway and that it was “working closely with Visa on a potential solution.”

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