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Amazon Won't Accept Visa's UK Credit Cards from January. High Processing Fees.


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  • Burgerwars changed the title to Amazon Won't Accept Visa's UK Credit Cards from January. High Processing Fees.

 
I wonder what Amazon would do if MasterCard UK decides to hike their fees to match Visa UK. They'll be stuck in a no-win situation. 

I think Amazon is just being a whiny little beach.

Like Walmart, they probably have negotiated rock-bottom swipe fees directly with each of the card associations. They are probably getting something like 1% and are probably trying to strong-arm Visa for another fraction of a percent.

I say fvk Amazon. It's not like their prices are even low anymore. They are looking to outsource everything they can to India and then gyp Visa for a few extra $ just to line Blowzo's pockets so he can buy another island somewhere since he can't use Epstein's anymore.


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After reading a few articles over the past year, I think this is more of a problem with Visa. Do y'all remember when Kroger stopped taking ALL credit cards for a while because the fees were too high? Well their main grievance was with Visa's fees. I also recently watched a CNBC piece about merchant fees and small businesses, and the interesting tidbit I found in it was that credit card processing is often the highest or second highest expense for small businesses. I think Visa may be more of a problem because they have the highest volume and the greatest negotiating power against the businesses, which allows them to charge higher fees. I am not sure they charge as much as American Express, but from what I have read, they are more expensive than Mastercard or Discover. And that's before we even get into the debit cards having lower fees discussion.

 

I do think it is foolish of Amazon to try this because they are such a large business with so many customers. However, I do think most people have access to a Mastercard (either debit or credit). I remember when Costco would only take AmEx, and I think that was a problem for them because a lot fewer people have AmEx cards. Costco's customers are predominantly middle class and business owners, so maybe it wasn't too much of an issue for that group compared to the overall market. But I think Amazon has a much larger customer base.

 

I don't think they could pull this off in the U.S. for a myriad of reasons, but one good one is that they have Visa and AmEx branded cards. They would have to convince Chase to switch the Visa to Mastercard, continue to accept the Synchrony store card, and potentially end the Amazon Business AmEx card program. I can't imagine AmEx would be interested in issuing an Amazon Mastercard product, although that would be hilarious. 🙂 I also wonder what the breakdown of cards issued is like in the UK (i.e. % of Visa, Mastercard, AmEx cards issued). 

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On 11/18/2021 at 4:47 AM, PotO said:


So they pay less in fees when they accept American Express? Something smells strange here.


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Not necessarily so.  I'm satisfied that Amazon is savvy enough to navigate this situation with reasonable sense.

 

As suggested else, Amex does negotiate it's fees with select high volume vendors.  Perhaps Amex was more pliable in this regard than VISA and that's why Amazon feels it has the leverage from which to make this move.

 

Alternatively, Amex has always justified it's higher swipe fees by stating that it's cardholder base is "tonier" and higher-spending.  Perhaps Amazon's receipts back this up and, given an appreciably higher Amex customer invoice, Amazon doesn't consider it wise to threaten Amex in similar fashion (or is waiting to see how it fares with Visa before tacking Amex fees).

 

Bottom line, I don't have a clue what the reality is here.  I credit Amazon with having more than its share of business acumen, so I'm willing to accept this is a smart strategic move.  (I could be wrong.)

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10 hours ago, PotO said:

say fvemoji285.pngk Amazon. It's not like their prices are even low anymore

 

That's an interesting observation.  Bev made the same observation earlier this week ("great minds ...", eh? ;) )  I'm not sure whether that's accurate, or that they've managed to strong arm a good number of competitors into equivalent price discounts.  (I'm inclined to go with a middle ground here.)

 

What I will observe about my own purchasing behavior is that I now default to Amazon, not because I have a conviction that they'll be the lowest price, but because it's the most convenient website on which to search for a product (with the strongest likelihood of finding it and that it is in stock).  As for pricing, I look for it to be among the lowest cost options that provide near-immediate gratification (with same-day to 2-day delivery in most cases).  And even where a lower priced competitor surfaced with same ease of ordering, I'll willingly pay up a modest premium for the Amazon product based upon past experience with high reliability and strong customer service.

 

 

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On 11/19/2021 at 9:27 AM, hdporter said:

 

That's an interesting observation.  Bev made the same observation earlier this week ("great minds ...", eh? ;) )  I'm not sure whether that's accurate, or that they've managed to strong arm a good number of competitors into equivalent price discounts.  (I'm inclined to go with a middle ground here.)

 

What I will observe about my own purchasing behavior is that I now default to Amazon, not because I have a conviction that they'll be the lowest price, but because it's the most convenient website on which to search for a product (with the strongest likelihood of finding it and that it is in stock).  As for pricing, I look for it to be among the lowest cost options that provide near-immediate gratification (with same-day to 2-day delivery in most cases).  And even where a lower priced competitor surfaced with same ease of ordering, I'll willingly pay up a modest premium for the Amazon product based upon past experience with high reliability and strong customer service.

 

 

To me, they seem competitive on most of the stuff I buy. But I honestly shop on there for things I can’t buy or that are out of stock often at my local stores (grocery store and Target). And I agree 100%: they are the most convenient option online. The shipping is fast, they are very clear about what is and is not in stock, they are clear on when it will be delivered, and they have a great selection. You can find disparate and dissimilar things quickly and order them all at once, versus going to multiple stores or websites.  I do most of my shopping locally, but I do maybe 10% of it on Amazon. Target is stepping up their game though. They have fast shipping now and it’s free if you have the Target credit card.

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That's an interesting observation.  Bev made the same observation earlier this week ("great minds ...", eh? )  I'm not sure whether that's accurate, or that they've managed to strong arm a good number of competitors into equivalent price discounts.  (I'm inclined to go with a middle ground here.)
 
What I will observe about my own purchasing behavior is that I now default to Amazon, not because I have a conviction that they'll be the lowest price, but because it's the most convenient website on which to search for a product (with the strongest likelihood of finding it and that it is in stock).  As for pricing, I look for it to be among the lowest cost options that provide near-immediate gratification (with same-day to 2-day delivery in most cases).  And even where a lower priced competitor surfaced with same ease of ordering, I'll willingly pay up a modest premium for the Amazon product based upon past experience with high reliability and strong customer service.
 
 


$42 plus tax for a DVD on Amazon vs. $14.95 net on iTunes.

The AMazon DVD is a pain in the butt to rip and store and it takes two days to get here. On the other hand, iTunes is instant gratification and it goes directly onto your storage device where t can sit until The Second Coming.

Listen to Bev, dammit!


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In terms of Amex, they ain’t always the most expensive anymore. They have been known to lower their fees if the overall volume is to their liking. 

The fee differential only comes into play with extremely large merchants. Walmart, Amazon and the like can negotiate directly with the card associations. Everybody else plays one flat rate with their merchant service provider.

Arguably the largest enchant services provider in the US is Chase PaymentTech. I'm paying 2.2% swiped on Visa, MasterCard, Discover, UnionPay and American Express. For card not present it jumps up to 3.2%.

Since payment service providers do run your credit and base their rates, at least in part, on your credit rating, those with y credit might pay significantly higher, but then DILLIGAF?

Other payment service providers might charge a bit more than Chase, but in the end it is still a fat rate.

The big boys can negotiate directly with the card associations. But when they start turning into whiny little beaches over an extra 1/5% in swipe fees eating into their billion $ profits, I say fvk them. They can find sympathy in Webster's precisely between and syphilis.


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