The hike in transaction fees was the result of Britain leaving the EU in January 2020, which removed a cap for such fees in Britain. File Photo by Friedemann Vogel/EPA-EFE
Nov. 17 (UPI) -- Online retail giant Amazon said on Wednesday that it will stop accepting British-issued Visa credit card payments in two months, due to a dispute over high transaction fees it says Visa charges.
Amazon said in a message to customers that it will no longer accept the Visa credit cards starting Jan. 19. Visa debit cards issued in Britain, Visa credit cards issued in other countries and other credit cards will continue to be accepted past that date.
Earlier this year, Visa and Mastercard both increased interchange fees that it charges merchants for digital transactions between Britain and the European Union.
The hike was the result of Britain leaving the EU in January 2020, which removed a cap for such fees in Britain.
"The cost of accepting card payments continues to be an obstacle for businesses striving to provide the best prices for customers," an Amazon spokesperson said, according to Sky News.
"These costs should be going down over time with technological advancements, but instead they continue to stay high or even rise."
Visa said it's "very disappointed" with Amazon's decision.
"When consumer choice is limited, nobody wins," a Visa spokesperson said, according to Sky.
"We have a long-standing relationship with Amazon, and we continue to work toward a resolution, so our cardholders can use their preferred Visa credit cards at Amazon U.K. without Amazon-imposed restrictions come January 2022."