Amazon will let UK customers pay by Visa after threatening to ban them in costs row 

Amazon has finally called off its battle with Visa and will let British customers carry on paying with its cards.

The American internet giant had threatened to stop accepting Visa in a row over high fees demanded by the card provider to process payments.

Following a truce last month, Amazon said yesterday: ‘We’ve recently reached a global agreement with Visa that allows all customers to continue using their Visa credit cards in our stores.’

Shops and small firms have also complained about the fees, which they say cost £1.3billion a year, or £46 per household, and are added to prices. 

Which? Money’s Jenny Ross called for an ‘urgent’ crack down on the fees.

She said: ‘There have been long-standing concerns about credit card fees that affect both consumers and businesses, so the regulator should urgently take forward its proposed work examining card fees.’ 

Amazon had threatened to stop accepting Visa in a row over high fees demanded by the card provider to process payments. (stock image)

Last year, the UK Supreme Court ruled that Visa and Mastercard charges, known as interchange fees, are unlawful because they are set in a way that restricts competition. 

However, the card firms insist this is not the end of the matter because further legal cases and tribunals have yet to give a ruling.

The Federation of Small Businesses said large retailers, such as Amazon, have the financial muscle to force Visa and Mastercard to reduce processing fees. But it said many others do not have this option.

FSB national vice chair, Martin McTague, said: ‘Big online platforms like Amazon have the clout to renegotiate when they feel the card fees they’re being charged are unreasonable.

‘Small businesses, especially in this climate, typically do not have the time or resource to challenge their terminal provider, or shop around for a new one.’