Amazon to stop accepting UK Visa credit cards • Hacker News Board

Re: Amazon to stop accepting UK Visa credit cards

#331

Post by Symbiote » Wed, Nov 17, 2021, 1:49 PM UTC

gambiting wrote: post #89

ericyan wrote: post #86

Earlier quoted context omitted.

This practise is illegal in the UK and that's probably why they decided to this instead

It's illegal everywhere in the EU as well. If a merchant accepts debit/credit cards then they are not allowed to charge extra for using them.

I see this repeated often, but it's not unusual in Denmark for credit cards, especially corporate cards, to have an extra fee applied.

Example in English: https://www.flysas.com/en/help-and-contact/faq/booking/why-d...

And in Danish: https://www.tivoli.dk/da/om/vilkaar-og-betingelser/betalings... (or without the reasoning in English: https://www.tivoligardens.com/en/om/vilkaar-og-betingelser/b... )

Re: Amazon to stop accepting UK Visa credit cards

#332

Post by chrisseaton » Wed, Nov 17, 2021, 1:50 PM UTC

MomoXenosaga wrote: post #287

c16 wrote: post #141

Earlier quoted context omitted.

The flip side to this is using something like an Amex which offers insurance, points, business lounge access and much more. Set up the card with diret debit (much like your automated payments) and never spend above what you can afford. You now have perks, points, insurance, consumer protection and still zero worries.

You are paying for these "perks" and no I don't need insurance when I'm buying an electronic toothbrush from Amazon thank you very much.

> You are paying for these "perks"

Everyone is paying for the perks, since prices are the same for everyone, but only the people with a credit card are getting them.

You're paying for their perks every time you buy with a debit card - it's madness to use debit.

Re: Amazon to stop accepting UK Visa credit cards

#333

Post by tigershark » Wed, Nov 17, 2021, 1:50 PM UTC

input_sh wrote: post #79

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?

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…

How is this better than having a single credit card that gives you automatic protection and insurance on everything that you buy without having to think to stay under your self imposed limit otherwise you have to manually top up the card with the amount that you need to spend?

Re: Amazon to stop accepting UK Visa credit cards

#334

Post by toyg » Wed, Nov 17, 2021, 1:51 PM UTC

oarsinsync wrote: post #314

tazjin wrote: post #184

Earlier quoted context omitted.

Monzo. It's the default in fact, since in order to get an overdraft you need to do a credit application.

There's a difference between having an arranged overdraft, and being able to have a negative balance (also known as an unarranged overdraft). Monzo's own help pages explicitly state that your balance can go into the negative, because offline debit card payments will not be rejected. They'll also gladly take you into the negative if you owe them money (e.g. through a Monzo Plus or Premium sub, or use their Flex servic…

The mandated fee-cap introduced a few years ago has (or rather should have) curbed the view that overdraft fees are a cost centre. Banks are extremely proactive now, as soon as there is a hint you'll go in the red they'll ping you in a bunch of ways and remind you of what you can and cannot do; so I wouldn't exclude that some (or all) might now refuse to complete purchases when it would push you too deep into unarranged territory, because they cannot charge you more than a fixed amount, so it would become basically a free loan.

Re: Amazon to stop accepting UK Visa credit cards

#335

Post by tigershark » Wed, Nov 17, 2021, 1:52 PM UTC

socialdemocrat wrote: post #232

mattowen_uk wrote: post #159

Earlier quoted context omitted.

> Never owned a credit card, don't have the slightest wish to do so. Bizarrely, never owning a credit card will negatively impact your credit rating.

I know this is a thing in the US, but in Norway where I am from it doesn’t matter. Nobody gets a credit card here improve credit rating. I doubt people do they in most of Europe. When somebody does a credit check on you they don’t get a score, only a remark on whether that person has done any negative with respect to their credit worthiness. Thus there is really only the negatives which count.

In U.K. it definitely helps your credit score.

Re: Amazon to stop accepting UK Visa credit cards

#336

Post by Liquid_Fire » Wed, Nov 17, 2021, 1:52 PM UTC

buro9 wrote: post #139

andycowley wrote: post #53

This was from March about Brexit-related interchange rates on Visa https://news.sky.com/story/visa-to-hike-interchange-fees-for...

From the article: "The move to increase interchange fees will bring it into line with MasterCard, its rival payments group, which announced a similar move in January" So it seems that Visa rate trails the Mastercard one and they will be the same.

Note that this only applies to UK payments to EU companies. It would not apply to almost any Amazon purchases as they are usually from Amazon UK.

Re: Amazon to stop accepting UK Visa credit cards

#337

Post by youngtaff » Wed, Nov 17, 2021, 1:56 PM UTC

There's a huge piece of information missing from that article and much of the reporting of Amazon's decision

Visa have put up UK-EU interchange fees (as post Brexit they're not covered by the cap)

But it affects Amazon because when you buy something from Amazon UK, you're billed by Amazon Luxembourg and Amazon UK then fulfil

Amazon's tax avoidance strategy is part of the reason the charge has increased for them.

If they billed from the UK it wouldn't affect them

Re: Amazon to stop accepting UK Visa credit cards

#338

Post by Bobylonian » Wed, Nov 17, 2021, 1:57 PM UTC

input_sh wrote: post #79

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?

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…

My mom has exactly the same system with her two debit cards and I have not taught her that - she is naturally smart. So proud of her and you too ;) Cheers!

Re: Amazon to stop accepting UK Visa credit cards

#339

Post by murkle » Wed, Nov 17, 2021, 1:59 PM UTC

londons_explore wrote: post #279

heurisko wrote: post #174

Earlier quoted context omitted.

> Never owned a credit card, don't have the slightest wish to do so. I own a credit card, as you get additional consumer protections using a credit card rather than a debit card in the UK. Pay it off in full every month. No problem.

Specifically, the main protection is that if you buy something that turns out to be faulty or the company never delivers the goods, you can get the money back without going to court. You get the money back even if the company goes bankrupt. Some banks offer similar things on debit cards, but it's always at the banks discretion rather than required by law.

(*) over £100

Re: Amazon to stop accepting UK Visa credit cards

#340

Post by omar_alt » Wed, Nov 17, 2021, 2:00 PM UTC

Having a Mastercard and an Amex can be useful if you are dealing with some payment gateways that throw a fit at visa during checkout (Scottish whisky sites on Stripe payment gateways is a recurring theme). However this is completely impractical for many people especially those on low incomes who now consider Amazon a utility.