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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

#71

Post by fredoralive »

jdiez17 wrote: post #62
mrec wrote: post #43

Earlier quoted context omitted.

> most people buying stuff on Amazon would be using a debit card, folks only really use credit cards for large purchases Huh? I'm in the UK, have been an Amazon customer for over 20 years and have always used a credit card for everything. I didn't even know you could use a debit card, and can't see any reason you'd want to. Paid off in full every month, better consumer protection, what's not to like?

> what's not to like? Well, the predatory business model, for one. The reason your credit card company can offer you "better consumer protection" and other benefits is because they count on a percentage of people not paying off their debt in time (and thus making more money out of them). Also, I personally wouldn't want "better consumer protection" to be mediated by a private company. That should just be the default.

In a UK context, the "better consumer protection" comes from the Consumer Credit Act 1974, not the banks goodwill.

(Although the time my debit card did get stolen somehow, my bank did refund out of goodwill presmably becuase they didn't want to lose a customer).

Re: Amazon to stop accepting UK Visa credit cards

#72

Post by GoblinSlayer »

chinathrow wrote: post #58
GoblinSlayer wrote: post #39

Earlier quoted context omitted.

Visa would lose face if they charged the end user with transaction fees, so the merchant pays it instead. Then the merchant delegates the transaction fee to the user, but thankfully nobody knows about that.

I think you left out a few steps who's getting their fat cut (issuer of the card, aquirer, merchang provider etc) but not sure how it exactly goes down.

I suppose consumer to merchant payments are optimized and men in the middle can't get much, everything goes to Visa. Card to card transactions are less optimized and issuer might get a cut.

Re: Amazon to stop accepting UK Visa credit cards

#73

Post by 0xy »

londons_explore wrote: post #3

If this is a negotiation tactic, why is it not a global proposal? Perhaps because bank transfer is very developed in the UK, and wire transfers could totally replace credit cards, with lower fees? On mobile devices, the effort to set up a wire transfer or direct debit is only maybe 1 minute for most users, and that's a one time thing, and unlike credit cards they don't expire either. Fees for the use of the system ar…

It is being rolled out globally. Amazon instituted a very hefty fee for Visa transactions in Australia. No such fee for Amex or MasterCard payments.

Re: Amazon to stop accepting UK Visa credit cards

#74

Post by softveda »

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/…

Amazon Australia has started charging 0.5% for Visa cards. In Australia a merchant can charge more for payment by credit card but only up to the actual extra cost they incur.

Re: Amazon to stop accepting UK Visa credit cards

#75

Post by docdeek »

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?

Not sure about the UK but here in France Amazon has just started promoting a co-branded Amazon Amex card.

Re: Amazon to stop accepting UK Visa credit cards

#76

Post by softveda »

0xy wrote: post #73
londons_explore wrote: post #3

If this is a negotiation tactic, why is it not a global proposal? Perhaps because bank transfer is very developed in the UK, and wire transfers could totally replace credit cards, with lower fees? On mobile devices, the effort to set up a wire transfer or direct debit is only maybe 1 minute for most users, and that's a one time thing, and unlike credit cards they don't expire either. Fees for the use of the system ar…

It is being rolled out globally. Amazon instituted a very hefty fee for Visa transactions in Australia. No such fee for Amex or MasterCard payments.

Not hefty but an annoying 0.5%. In Australia they can't surcharge more than the actual cost involved in processing the card payment.

Re: Amazon to stop accepting UK Visa credit cards

#77

Post by IanCal »

fredoralive wrote: post #41
Kiro wrote: post #16

Earlier quoted context omitted.

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

Presumably confusion between debit (where Visa is common) and credit (where it isn't).

HSBC credit cards were visa. I assume they'll change as first direct has.

Re: Amazon to stop accepting UK Visa credit cards

#78

Post by stillicidious »

jdiez17 wrote: post #62
mrec wrote: post #43

Earlier quoted context omitted.

> most people buying stuff on Amazon would be using a debit card, folks only really use credit cards for large purchases Huh? I'm in the UK, have been an Amazon customer for over 20 years and have always used a credit card for everything. I didn't even know you could use a debit card, and can't see any reason you'd want to. Paid off in full every month, better consumer protection, what's not to like?

> what's not to like? Well, the predatory business model, for one. The reason your credit card company can offer you "better consumer protection" and other benefits is because they count on a percentage of people not paying off their debt in time (and thus making more money out of them). Also, I personally wouldn't want "better consumer protection" to be mediated by a private company. That should just be the default.

Visa debit also has transaction fees, often fixed to the same as credit for small vendors. Avoiding credit cards does not fix that.

Re: Amazon to stop accepting UK Visa credit cards

#79

Post by input_sh »

mrec wrote: post #43
em10fan wrote: post #12

Earlier quoted context omitted.

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 wou…

> most people buying stuff on Amazon would be using a debit card, folks only really use credit cards for large purchases Huh? I'm in the UK, have been an Amazon customer for over 20 years and have always used a credit card for everything. I didn't even know you could use a debit card, and can't see any reason you'd want to. Paid off in full every month, better consumer protection, what's not to like?

Here's why: two debit cards, one for receiving money, one for spending money. Automated payment from the 1st one to the 2nd one once a month with a fixed amount you expect to spend in a month.

Nothing to pay off, you're spending your own money, can't be overcharged, can't go below zero, if someone leaks your spending card they can't touch the majority of your money, no scummy business practices.

Never owned a credit card, don't have the slightest wish to do so.

Re: Amazon to stop accepting UK Visa credit cards

#80

Post by blitzar »

00deadbeef wrote: post #57
pricechild wrote: post #42

Well that's annoying. My bank (Natwest) just recently sent me a letter to boast we're getting shiny new VISA credit cards to replace our existing Mastercards. (which aren't near expiry)

That's weird because they're moving their debit cards from Visa to Mastercard

I guess the kickback on the credit card fees is too good to pass up for Natwest.
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