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Amazon to stop accepting UK Visa credit cards

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Re: Amazon to stop accepting UK Visa credit cards

#11

Post by pornel »

barrkel wrote: post #2

I cannot believe that Visa transaction overhead would be higher than Amex - there's something going on behind the scenes here. I don't think this is the end of it either, it smells like a negotiation threat. Visa have a larger market share overall (80%, including debit cards [1]) but Mastercard leads in credit cards. Amex has always been fairly niche because it's not accepted everywhere. [1] https://www.statista.com/…

First direct (HSBC) has recently switched from Visa to Mastercard. The switch felt sudden, and I wouldn’t be surprised if it was due to negotiation that fell through.

Re: Amazon to stop accepting UK Visa credit cards

#12

Post by em10fan »

barrkel wrote: post #2

I cannot believe that Visa transaction overhead would be higher than Amex - there's something going on behind the scenes here. I don't think this is the end of it either, it smells like a negotiation threat. Visa have a larger market share overall (80%, including debit cards [1]) but Mastercard leads in credit cards. Amex has always been fairly niche because it's not accepted everywhere. [1] https://www.statista.com/…

Quite the opposite in the UK, at least over the last 10 years or so.

99% of debit cards are Visa, and most people buying stuff on Amazon would be using a debit card, folks only really use credit cards for large purchases and things like travel, here.

Even when it comes to credit cards, I would say Mastercard has like a large chunk - like 80% in terms of institutions (but who knows in terms of actual customers), I would say.

Barclays and HSBC are the only majors that do Visa as far as I know. And Vanquis which is a junky one for people with bad credit.

The other majors like Lloyds, TSB, Bank Of Scotland, Halifax, Natwest, RBS, are all Mastercard. Same with most smaller banks like Virgin and CapitalOne, and store branded ones like Sainsburys/M&S/Tesco, too, as well as the remainder of the popular bad-credit cards like Ocean, and Aqua. Mastercard.

Re: Amazon to stop accepting UK Visa credit cards

#13

Post by blowski »

uzakov wrote: post #4
barrkel wrote: post #2

I cannot believe that Visa transaction overhead would be higher than Amex - there's something going on behind the scenes here. I don't think this is the end of it either, it smells like a negotiation threat. Visa have a larger market share overall (80%, including debit cards [1]) but Mastercard leads in credit cards. Amex has always been fairly niche because it's not accepted everywhere. [1] https://www.statista.com/…

I think situation in 2021 is very different in London: AMEX is accepted nearly everywhere in central London (Even on markets etc), there are ofc some shops that don't take it but generally AMEX is widely accepted. Re: Mastercard It seems that Mastercard is more widespread among "hot" banking startups, ie I can create virtual debit Mastercards on Revolut and Monzo

I'd like to see some stats on that. My own experience is much closer to that of the OP.

Re: Amazon to stop accepting UK Visa credit cards

#14

Post by em10fan »

wdb wrote: post #9
barrkel wrote: post #2

I cannot believe that Visa transaction overhead would be higher than Amex - there's something going on behind the scenes here. I don't think this is the end of it either, it smells like a negotiation threat. Visa have a larger market share overall (80%, including debit cards [1]) but Mastercard leads in credit cards. Amex has always been fairly niche because it's not accepted everywhere. [1] https://www.statista.com/…

Really never had a Visa credit card only master card in the UK. Visa debit cards, yes.

Totally agree.

All the major banks apart from Barclays and HSBC use Mastercard for credit

Re: Amazon to stop accepting UK Visa credit cards

#15

Post by aigo »

ChrisRR wrote: post #6

Well that's annoying. Visa credit cards are very common in the UK, I myself use one for everything online. I don't know anyone who's got an American Express card in the UK Edit: Could it also be that Amazon offer their own Mastercard credit card and they're trying to nudge people towards that?

Fun fact: At M&S, 12% of payments taken online for delivery to London addresses are paid by Amex. The rest of the country? <3%.

Re: Amazon to stop accepting UK Visa credit cards

#16

Post by Kiro »

ChrisRR wrote: post #6

Well that's annoying. Visa credit cards are very common in the UK, I myself use one for everything online. I don't know anyone who's got an American Express card in the UK Edit: Could it also be that Amazon offer their own Mastercard credit card and they're trying to nudge people towards that?

https://news.ycombinator.com/item?id=29250661 is saying the opposite so what is it?

Re: Amazon to stop accepting UK Visa credit cards

#17

Post by em10fan »

blowski wrote: post #13
uzakov wrote: post #4

Earlier quoted context omitted.

I think situation in 2021 is very different in London: AMEX is accepted nearly everywhere in central London (Even on markets etc), there are ofc some shops that don't take it but generally AMEX is widely accepted. Re: Mastercard It seems that Mastercard is more widespread among "hot" banking startups, ie I can create virtual debit Mastercards on Revolut and Monzo

I'd like to see some stats on that. My own experience is much closer to that of the OP.

Other than some occasional small restaurants/pubs, and a few small indie shops, its basically accepted everywhere here in Edinburgh, I have a corporate amex and use it for expensing business dinners very often, and supplies from office shops, supermarkets, etc..

Re: Amazon to stop accepting UK Visa credit cards

#18

Post by bellyfullofbac »

The HN headline doesn't fit the article. UK issued Visa cards != Amazon UK, and it says Amazon.com, not Amazon UK.

For example Revolut is available in a lot of countries, they're UK-based, and I'm guessing the cards are UK-issued since a lot of merchants think it's a GBP card (and they conveniently ask if they should do the currency conversion (and conveniently don't tell you their conversion rate is much higher and profits them)).

Re: Amazon to stop accepting UK Visa credit cards

#19

Post by londons_explore »

havkd wrote: post #10
ABS wrote: post #8

Earlier quoted context omitted.

likely because Visa is increasing their fees in UK since Brexit unshackled them from some EU caps

I like this. If that’s the case, it proves the free market works. You don’t need regulations when corporations can strongarm one another.

Most users either have a MasterCard or have a visa, and the majority of people couldn't get the other without substantial hassle. It would normally involve switching to a new bank, which in the UK is less frequent than divorces.

That gives visa a lot of lock in - and the competition is no longer MasterCard but instead openbanking API's.

Re: Amazon to stop accepting UK Visa credit cards

#20

Post by sorokod »

havkd wrote: post #10
ABS wrote: post #8

Earlier quoted context omitted.

likely because Visa is increasing their fees in UK since Brexit unshackled them from some EU caps

I like this. If that’s the case, it proves the free market works. You don’t need regulations when corporations can strongarm one another.

Just like you don't need peace treaties between countries, they can just duke it out on the battlefield,
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