Bernstein analyst Harshita Rawat notes that Amazon.com Inc (AMZN) would stop accepting Visa Inc (V) credit cards issued in the U.K. starting on January 19, 2022. At the same time, Amazon offered some affected customers £20 to incentivize them to switch to another payment method.
What Happened
The analyst pointed out that the action does not affect Visa debit cards or Visa credit/debit cards issued outside the U.K.Rawat believes this is “clearly a show of strength by Amazon” in its likely ongoing negotiations with Visa over the cost of credit card acceptance.
