Amazon is considering dropping Visa as a partner for its Amazon Prime Rewards credit card, just two days after announcing it would stop accepting Visa credit cards issued in the U.K., Reuters reported Wednesday (Nov. 17).
Reports suggest the tussle between the two commerce heavyweights is related to Great Britain’s exit from the European Union in 2020, as Great Britain no longer has to follow the EU’s strict limits on what fees card-issuers can charge retailers. According to Reuters, Last month, Visa raised its fees for telephone and online transactions between the U.K. and EU countries from 0.3% to 1.5% for credit cards, and raised debit card fees to 1.15%, up from 0.2%. Reuters reported that analysts said the industry average is between 1.5% and 3.5%. Analyst Laura Hoy at Hargreaves Lansdown told Reuters the pricing dispute marks an “important turning point in the payments industry.” “Ultimately, we think Amazon has the edge in this game of chicken,” Hoy told Reuters.