Amazon and Visa decided to terminate the global conflict over credit card fees

Key takeaways: 

• The agreement means Amazon shoppers in the U.K. can persist using Visa credit cards, as earlier declared by the two parties.
• Amazon will also lower a 0.5% tax on Visa credit card transactions in Singapore and Australia, introduced the previous year.
• Amazon has been stacking intimidation on Visa to reduce its fees, signaling increasing frustration from retailers over the expenses associated with main card networks.

The global credit card fee dispute: 

Amazon has a global contract with Visa to resolve a controversy over the credit card giant’s fees.

The agreement means Amazon customers in the U.K. can persist using Visa credit cards, as earlier declared by the two parties. The e-commerce giant will also lower a 0.5% tax on Visa credit card transactions in Singapore and Australia, introduced the previous year.

The prior month, Amazon said it had settled objectives to prevent taking Visa credit cards in Britain two days before the change was anticipated to take place. The firms stated at the time that they would persist in talks in a broader resolution to their spat.

“We’ve lately reached a global pact with Visa that lets all clients continue using their Visa credit cards in our shops,” an Amazon representative informed CNBC via email Thursday. 

“Amazon stays committed to presenting consumers a payment experience that is suitable and offers choice.”

Amazon has been stacking pressure on Visa to reduce its fees in a string of moves that signaled rising frustration from retailers over the costs associated with major card networks, as well as the tech giant’s market power and influence over its associates.

The likes of Visa, Mastercard, and American Express now face bitter rivals from a flood of fintech competitors, from “buy now, pay later” assistance like Klarna to open banking. This technology allows start-ups to bypass traditional payment modes such as cards.