Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to Anonymous,longview,nimnarb,sg31,Rhyd6, for Donating to support the site

Visa credit cards on Amazon

Credit Cards, borrowing on Loans and discussions on Stoozing
Dod101
Lemon Half
Posts: 9926
Joined: October 10th, 2017, 11:33 am
Has thanked: 2327 times
Been thanked: 4383 times

Re: Visa credit cards on Amazon

#459163

Postby Dod101 » November 19th, 2021, 7:32 am

Lanark wrote:First Direct and Natwest have also ditched Visa replacing them with Mastercard this year.

I have to wonder if when the last bank drops Visa, then Mastercard will hike their fees?


HSBC changed my credit card from Visa to Mastercard a couple of years ago but my debit card is still VISA.

Dod

Laughton
Lemon Slice
Posts: 331
Joined: November 6th, 2016, 2:15 pm
Has thanked: 33 times
Been thanked: 106 times

Re: Visa credit cards on Amazon

#459241

Postby Laughton » November 19th, 2021, 11:20 am

HSBC changed my credit card from Visa to Mastercard a couple of years ago but my debit card is still VISA.


Do you mean the other way around? That's the way it currently is with First Direct - (owned by HSBC).

Hallucigenia
Lemon Slice
Posts: 474
Joined: November 5th, 2016, 3:03 am
Has thanked: 27 times
Been thanked: 208 times

Re: Visa credit cards on Amazon

#459336

Postby Hallucigenia » November 19th, 2021, 4:27 pm

Lootman wrote:Has Visa been trying to jack up its interchange fees? Both Visa and MC historically had low interchange fees in the UK, relative to what they charge in the US. That is why welcome bonuses, cashback and point/mile earning rates on UK cards are low compared to what you get in the US.

Whereas Amex always had high fees, which is why they are less well accepted in the UK.


I'm surprised you weren't aware of this given your wide reading across the spectrum on matters to do with Brexit. But yes, this is one of those stories where Brexit plays a big part, it's not the only reason but it interacts with other factors to make things much worse for people in the UK than elsewhere.

In 2015 the European Parliament voted to introduce the Interchange Fee Regulation in an attempt to standardise card processing across the Single Market and give more transparency on fees. It also capped debit card interchange fees at 0.2% and credit cards at 0.3% for transactions where merchant, acquirer and card issuer were all based in the EU (and extended to the EEA).

Following Brexit, the UK onshored the IFR in the Interchange Fee (Amendment) (EU Exit) Regulations 2019 - so the 0.2/0.3% caps apply on transactions with UK cards with UK stores.

However, when you buy something from amazon.co.uk, you're not buying from a UK company, you're buying from Amazon Europe Core SARL in the more ... tax-efficient ... location of Luxembourg. Before Brexit this didn't matter, as a British card transaction with a Luxembourg company still counted as an EE-to-EEA transaction, but after Brexit it's a "foreign" transaction and so isn't regulated. And at the moment the card companies are looking at any way to increase revenue after the pandemic so after Brexit happened they announced that fees for these "foreign" transactions would be going up to 1.5%.

Bloomberg has more detail - reading between the lines, although both are going to 1.5% Visa is being more aggressive than Mastercard about its price rises and eg having separate rates for online purchases, whereas Mastercard are unwilling to upset their relationship with Amazon's credit card division. And the UK is a pretty small pawn in a wider battle ranging from the US to the EU.

Amex doesn't have interchange fees as they combine the roles of "bank" and "card company" so they're not strictly comparable (and are only partly subject to the IFR rules), but some of their rates go down to 1.3% although 2-3% is more typical, so yes Visa/Mastercard are starting to encroach on Amex territory. But the usual argument for ignoring Amex is 1) they're 1% of the UK market and 2) their cardholders spend more, so overall profits are better if you accommodate Amex holders. The UK and Ireland are rather unusual in having Visa with >80% of the credit card market, other than Spain they're <50% in all other European countries.

swill453
Lemon Half
Posts: 5933
Joined: November 4th, 2016, 6:11 pm
Has thanked: 638 times
Been thanked: 2247 times

Re: Visa credit cards on Amazon

#459355

Postby swill453 » November 19th, 2021, 5:12 pm

I've applied for (and got) the Amazon Mastercard, with its £40 bonus. And also made a (different) Mastercard my default payment card so picked up another £20 bonus for that.

Scott.

Alaric
Lemon Half
Posts: 5134
Joined: November 5th, 2016, 9:05 am
Has thanked: 14 times
Been thanked: 1098 times

Re: Visa credit cards on Amazon

#459372

Postby Alaric » November 19th, 2021, 6:00 pm

Hallucigenia wrote:However, when you buy something from amazon.co.uk, you're not buying from a UK company, you're buying from Amazon Europe Core SARL in the more ... tax-efficient ... location of Luxembourg.


The point being made is that Amazon are putting their profits ahead of the interests of British consumers.

swill453
Lemon Half
Posts: 5933
Joined: November 4th, 2016, 6:11 pm
Has thanked: 638 times
Been thanked: 2247 times

Re: Visa credit cards on Amazon

#459374

Postby swill453 » November 19th, 2021, 6:05 pm

Alaric wrote:The point being made is that Amazon are putting their profits ahead of the interests of British consumers.

Don't all retailers do that?

Scott.

Hallucigenia
Lemon Slice
Posts: 474
Joined: November 5th, 2016, 3:03 am
Has thanked: 27 times
Been thanked: 208 times

Re: Visa credit cards on Amazon

#459400

Postby Hallucigenia » November 19th, 2021, 7:39 pm

Alaric wrote:
Hallucigenia wrote:However, when you buy something from amazon.co.uk, you're not buying from a UK company, you're buying from Amazon Europe Core SARL in the more ... tax-efficient ... location of Luxembourg.


The point being made is that Amazon are putting their profits ahead of the interests of British consumers.


Another point to consider is that borders create distortions, which organisations can take advantage of - as my Border Reiver ancestors did, it's nothing new. I'm sure Amazon would love to put their profits ahead of the interests of their German customers and Italian customers too - but they can't, because there's no border (for these purposes) between Luxembourg and Germany/Italy.


Return to “Credit Cards and Loans”

Who is online

Users browsing this forum: No registered users and 1 guest