To resolve a dispute over Visa’s fees, Amazon and Visa have reached a global agreement.
As a result of the agreement, Amazon customers in the United Kingdom can continue to use Visa credit cards, as the two businesses previously indicated. Amazon will also eliminate the 0.5 percent surcharge it imposed on Visa credit card transactions in Singapore and Australia last year.
Amazon announced last month that it would no longer accept Visa payment cards in the United Kingdom, just two days before the move was set to take effect. The corporations announced at the time that they would keep talking about a more comprehensive solution to their spat.
“We’ve recently reached a global agreement with Visa that allows all customers to continue using their Visa credit cards in our stores,” an Amazon spokeswoman said in an email to CNBC. “Amazon remains committed to offering customers a payment experience that is convenient and offers choice.”
Amazon has been putting pressure on Visa to decrease its fees, in a series of steps that showed rising retailer dissatisfaction with the pricing of major card networks, as well as the e-commerce behemoth’s market position and clout over its partners.
Visa, Mastercard, and American Express are now up against a slew of fintech challengers, ranging from Klarna’s “buy now, pay later” service to open banking, a technology that allows start-ups to essentially bypass established payment rails like cards.
Visa said in an emailed statement reporter that the two companies would collaborate on “new product and technology initiatives to ensure innovative payment experiences for our customers in the future.”
When contacted by reporter about the terms of their deal, both businesses declined to speak further.