News: Amazon’s Visa Cancellation and how to make a quick £20

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As many of you will have seen on the news this week, top retailers Amazon are planning to stop the use of UK VISA cards on their platform from 19 January 2022. Many of us, however, won’t know how this will impact us if it goes through, or how it will affect our use of the site. Here MoneyMagpie offer some financial advise on what this means for us.

First of all, more importantly: 

How To Make £20 From The Change 

Amazon is offering £20 for Prime customers to change from Visa to a different payment method, and £10 for other customers. The ban won’t apply to Visa debit cards which are still to be accepted on Amazon.

Why The Change?

Amazon says Visa’s fees are overinflated and block low prices for their customers.

Visa retaliated by saying that its charges are competitive and shouldn’t make that much of a difference on prices and that Amazon are ill-advised to place such a restriction on choice. 

What This Means For You 

If you use a UK Visa card with Amazon, and do not have an alternative payment method from 19 January 2022 onwards, Amazon will require you to update your payment to a bank debit card, or you may not be able to buy things from Amazon in future.

Unfortunately this means that customers will no longer be covered by credit card company insurance for larger purchases, something that currently exists if any problems arise.

Will The Change Actually Happen?

If, before 19 January 2022, the two sides can come to an agreement that negates the necessity for the above action, the change won’t come into effect at all, but either way, Amazon customers will watch the developments with great interest over the Christmas and New Year period, as they may stand to benefit from the changes. 

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