Visa, Amazon announce worldwide payment agreement

A visa credit card is held in front of an Amazon logo in this picture illustration taken September 6, 2017. Photo: REUTERS/Philippe Wojazer/Illustration

New York: Visa Inc. and Inc. announced an agreement on Thursday that allows customers to use Visa cards on Amazon sites worldwide without additional fees.

The companies also agreed to collaborate on product and technology initiatives for innovative payment experiences, Visa said in an email.

Credit card fees have been a growing source of tension between Amazon and Visa. Last year, Amazon started charging customers in Australia and Singapore who use Visa credit cards a 0.5 per cent surcharge.

Under the agreement, Amazon's site in Britain will no longer turn off Visa credit cards. Customers in Australia and Singapore will no longer pay the surcharge for using Visa.

Last month, Amazon's British website backed away from plans to stop accepting Visa credit cards issued in the United Kingdom, saying the two sides were talking.

Amazon had announced the move in November, blaming the high fees Visa charges for processing credit card transactions.

Any credit card transaction involves various fees, such as an interchange fee that the shopper's bank pays to the retailer's bank and other costs like service and technology charges. It wasn't clear which fee was the focus of the UK dispute.

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