The Amazon & Visa fallout

[C R]

They must have noticed that people weren't going to change credit cards just for them .

 

[I like Skol]

They must have noticed that people weren't going to change credit cards just for them .

I wonder how many people actually updated the payment method as requested? I reckon it was probably way below 50% and certainly enough to make a catastrophic dent in their turnover, even if only for a couple of months.

 

[Blue Hills]

​

​ ​ View attachment 626972 Email this morning The expected change regarding the use of Visa credit cards on Amazon.co.uk will no longer take place on January 19. We are working closely with Visa on a potential solution that will enable customers to continue using their Visa credit cards on Amazon.co.uk.  Should we make any changes related to Visa credit cards, we will give you advance notice. Until then, you can continue to use Visa credit cards…​

Yep I got that as well. Am not remotely surprised.

 

[C R]

I wonder how many people actually updated the payment method as requested? I reckon it was probably way below 50% and certainly enough to make a catastrophic dent in their turnover, even if only for a couple of months.

We didn't renew our prime subscription, which was due a couple of days after the original email.

We also have pretty much stopped ordering from them waiting to see what would happen. Personally, I don't think our level of amazon ordering is likely to go back to pre-anouncement levels any time soon.

 

[markemark]

A deal is being negotiated and everything is on hold until it is finalised. It is not clear who is giving in yet and who the deal with favour.

 

[markemark]

I wonder how many people actually updated the payment method as requested? I reckon it was probably way below 50% and certainly enough to make a catastrophic dent in their turnover, even if only for a couple of months.

Why do you assume it is Amazon who blinked first? It’s equally possible that visa panicked and are negotiating over their rates.

 

[I like Skol]

Why do you assume it is Amazon who blinked first? It’s equally possible that visa panicked and are negotiating over their rates.

Because if I were Amazon and enough customers had jumped before Visa realised they were in a losing position I would make sure Visa were blocked and let that be a lesson to anyone else who thinks they want to stand up against the Amazon behemoth!!! Harsh, but the way that big business works, rightly or wrongly!

EDIT: Amazon cannot really afford to show such weakness to it's suppliers/contractors, but maybe in this case they could not afford not to?

 

[DCLane]

I wonder how many people actually updated the payment method as requested? I reckon it was probably way below 50% and certainly enough to make a catastrophic dent in their turnover, even if only for a couple of months.

I moved to Visa Debit, primarily because they offered a £20 incentive to do so.

Now I'll happily move back to a Visa Credit Card having spent the £20 😄

 

[markemark]

Because if I were Amazon and enough customers had jumped before Visa realised they were in a losing position I would make sure Visa were blocked and let that be a lesson to anyone else who thinks they want to stand up against the Amazon behemoth!!! Harsh, but the way that big business works, rightly or wrongly!

EDIT: Amazon cannot really afford to show such weakness to it's suppliers/contractors, but maybe in this case they could not afford not to?

Visa wanted to increase fees. Amazon said no. Amazon dropped visa.

Both are massive. We have no idea who is moving from their positions. My guess is both and an agreement will be reached. But it’s all speculation. Either one could have buckled. We simply don’t know. All we do know is that Amazon who started the termination has paused it whilst negotiating continues. That doesn’t tell us anything.

 

[DaveReading]

I'm confidently expecting announcements from both parties to the effect that the other side has seen sense.

 

[Blue Hills]

A deal is being negotiated and everything is on hold until it is finalised. It is not clear who is giving in yet and who the deal with favour.

yep i found it slightly odd that amazon had announced that there was no change but the deal was still being worked on. confirms my view that they never intended to do it - maybe got panicked by lots of customers going oh/hum and doing nowt to change their card settings.

 

[C R]

yep i found it slightly odd that amazon had announced that there was no change but the deal was still being worked on. confirms my view that they never intended to do it - maybe got panicked by lots of customers going oh/hum and doing nowt to change their card settings.

Yep, that's my take too. Considering that visa is by far the largest provider of credit cards in the UK, I can't see amazon having a strong enough position at this point.

 

[markemark]

yep i found it slightly odd that amazon had announced that there was no change but the deal was still being worked on. confirms my view that they never intended to do it - maybe got panicked by lots of customers going oh/hum and doing nowt to change their card settings.

Equally it could be that Visa are busy giving in so Amazon are maintaining the status quo until it is resolved. What has happened today gives us no clue as to who is capitulating the most.

 

[Arrowfoot]

Here is what caused the issue.

With UK leaving EU, VISA and other card issuers no longer have to toe the line EU line which capped the interchange fee to 0.3% for credit cards and 0.2% for debit. Visa issued notice to its members that they will hike the fee to 1.5% for credit cards and 1.15% for debit cards. Which is a hefty jump. The planned hike I believe was scheduled for April 2022. So Amazon spat the dummy.

 

[Ming the Merciless]

I haven’t updated payment details. Got the email this morning.