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Amazon and Visa reach global truce on credit card fees

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Visa payment cards arranged on a computer keyboard.

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Amazon has reached a global settlement with Visa to settle a dispute over the credit card giant’s fees.

The deal means Amazon customers in the UK can continue to use Visa credit cards, as previously announced by the two companies. Amazon will also remove a 0.5% surcharge on Visa credit card transactions in Singapore and Australia, which it introduced last year.

Last month, Amazon said it had dropped plans to stop accepting Visa credit cards in Britain, two days before the change was due. The companies said at the time that they would continue discussions on a broader resolution to their spat.

“We recently entered into a global agreement with Visa that allows all customers to continue to use their Visa credit cards in our stores,” an Amazon spokesperson told CNBC via email. “Amazon remains committed to providing customers with a convenient and choice checkout experience.”

Amazon has pressured Visa to lower its fees, in a series of moves that have signaled growing frustration among retailers over the costs associated with major card networks, as well as the e-commerce giant’s market power and its influence on its partners.

The likes of Visa, Mastercard and American Express now face intense competition from a flood of fintech challengers, from “buy now, pay later” services like Klarna to open banking, a technology that enables start-ups to effectively bypass traditional payment rails such as cards. .

In a statement emailed to CNBC, Visa said its agreement with Amazon would also see the two collaborate on “new products and technology initiatives to ensure innovative payment experiences for our customers in the future.”

The two companies declined to comment further on the terms of their agreement when asked by CNBC.