(Bloomberg)—Amazon.com Inc. has made a last-minute reversal to its plan to ban the usage of Visa Inc.’s bank cards issued within the U.Ok.
The ecommerce agency emailed U.Ok. prospects on Monday to say that the ban—set for Wednesday—will not happen. Amazon had beforehand stated it was taking this step due to the rising price of accepting bank card funds.
Card charges have lengthy been a flash-point between retailers, banks and fee networks similar to Mastercard and Visa, the world’s largest.
Together with Mastercard Inc., the funds agency units the charges that retailers pay in swipe charges. Whereas banks that subject playing cards reap the majority of that payment, Visa has lengthy confronted criticism from retailers over rising prices.
The proposed ban by Amazon, first revealed in November, precipitated Visa shares to drop and led executives on the funds firm to accuse Amazon of punishing shoppers.
Though the prospect of an imminent ban has lifted, the problem isn’t completely resolved. Amazon stated in an e mail to prospects on Monday that it was “working intently with Visa on a possible answer.”
A spokesperson for Amazon didn’t instantly reply to a request for remark.
“Amazon prospects can proceed to make use of Visa playing cards on Amazon.co.uk after January 19 whereas we work intently collectively to succeed in an settlement,” a Visa spokesman stated.
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