Amazon and Visa Credit Cards: How Are You Affected?
Amazon’s decision to ban the use of Visa credit cards as a payment method from 2022 onwards may affect how you decide to shop with the online retail giant. Find out more about your potential options below.
In a corporate spat that has real world consequences for customers, Amazon has announced that from January 2022 it will no longer be accepting UK-issued Visa credit cards as a payment method on Amazon.co.uk. Other credit cards will still be accepted.
In an email to customers, Amazon has stated that this is due to “the high fees Visa charges for processing credit card transactions”.
The online retailer has tried to sweeten the news for some, offering £20 off their next purchase the first time they set any debit card, or non-Visa credit card, as the default payment method. However, this is only open to customers who have received a specific promotional email or advertisement.
But how will this affect you in the long term as an Amazon user? We dig into when exactly these changes will take place, and what you can do if you are affected, below.
When is Amazon stopping the use of Visa credit cards?
Amazon has confirmed these changes won’t take place until 19 January 2022. Therefore any Black Friday, Cyber Monday, Christmas or New Year sales shopping you intend to do using your Visa credit card will not be affected.
This also means you can still access the Section 75 consumer protection provided by credit cards over the holiday season – especially useful for those big ticket items, such as TVs and laptops, which are often bought at this time of year.
» MORE: How do I choose a credit card?
What you can do next
Amazon’s decision potentially puts consumers in a tough spot, forcing some to choose between another credit card, which they might be unwilling or unable to take out, or a debit card, which carries far less consumer protection than the alternative.
At present, these are Amazon’s accepted payment methods:
- Visa credit (until 19 January, 2022)
- Visa debit
- Mastercard credit and debit
- American Express
- UK-based Maestro
Which path you decide to take as a consumer will entirely depend on your own personal financial situation.
Credit cards and Section 75 protection
If you have big purchases planned for 2022, and you wish to use Amazon as your retailer, then it might be worth considering a new, non-Visa credit card.
This is because under Section 75 of the Consumer Credit Act 1974, you can get your money back on credit card purchases between £100 and £30,000 if you are let down by your retailer.
This includes items that don’t arrive or arrive damaged, or if the retailer in question goes bust.
The same level of protection does not exist when buying items with a debit card, though if your goods don’t arrive or are damaged, you may have some rights under the chargeback scheme.
If you are looking to take out a new credit card, it might be best to pay off your existing credit card, so you can better manage your finances and mitigate the risks of falling into credit card debt.
If you do, instead, choose to make a debit card your default payment method, it could be an opportunity to shop around for a better value current account.
This might include looking for a stronger interest rate when you are in credit, a lower arranged overdraft rate, or a switching incentive.
» COMPARE: Current accounts with NerdWallet
Image source: Getty Images
Connor is a writer and spokesperson for NerdWallet. Previously at Spreadex, his market commentary has been quoted in the likes of the BBC, The Guardian, Evening Standard, Reuters and The Independent. Read more