Amazon Prime Visa – Amazon getting ready to ditch visa in favor of mastercard, both for their own co-branded credit card and the credit cards they actually accept.
It is possible we’re going to take a look at what’s going on, but first i’m going to ask you to please subscribe to this youtube channel. If you have not already, and if you have already, I thank you for doing so. So there was news out yesterday That at first blush I went and that news was the fact that amazon, as of this coming january, is saying that they are going to stop accepting visa credit card payments in the uk from uk issued banks.
Amazon Prime Visa
And the reason was because the interchange fees as far as amazon was concerned were getting too high: interchange fees being those fees that merchants pay to the credit card companies, the banks as well as visa or mastercard, or whoever is the uh Processing network.
So there’s about a one to three percent, sometimes even a little bit more interchange fee on every single transaction might be a little different in the uk in terms of what those percentages are, but that’s kind of how it is in the us, and so some retailers Get very unhappy, especially if they’re high volume, retailers paying those interchange fees on every single transaction. Now I said my first reaction was ah because this was all going on in The uk and i’m not in the uk.
However, there was another report from bloomberg yesterday saying that this dispute between amazon and visa is not necessarily just a uk thing, so amazon is actually considering in the us a change from having a amazon visa card to an amazon, mastercard and even beyond that they may Be considering a costco like move where they would only accept mastercard and not accept visa at all in terms of the other credit cards, i’m not Quite sure, but maybe mastercard was going to be the only thing or potentially could be the only thing.
So, a few years ago, costco basically said: okay, we are only going to accept visa, because visa gave them a sweetheart deal where they were going to have to pay little to nothing on each credit card transaction, and so all they had to do was only accept Visa and not accept cards on other payment networks, so amazon, obviously Bigger even than costco in terms of probably the volume that is going through. So it seems only logical that they could strike a similar deal now.
Visa made a lot of the banks unhappy when they did that in the past, so they might not be willing to do it again, but if amazon wants it, maybe mastercard would do something similar. So the idea that amazon could make the change to their own credit card and go to a situation where they only accept Mastercard is certainly not something that is illogical or that we couldn’t potentially see happening, maybe even in the near future. Now a lot of times.
These kind of disputes get themselves worked out and even if this one doesn’t for a lot of people, visa versus mastercard kind of interchangeable. So if the amazon visa became the amazon mastercard, most people wouldn’t think too much about it. Now, if amazon would take the next step and say that only mastercard is going to Be accepted on their website well, some people might be a little more unhappy about that.
Amazon might say: oh well, we’re doing you a favor here, because we aren’t paying as much in fees on every purchase, and so that means it’s going to trickle down to you in savings. But you don’t know if that’s really true or not, so it means you have to change your behavior to something that feels like it’s probably only benefiting amazon now to be fair. This is sort of a first world Problem.
The idea that maybe you have to be forced into using a mastercard if you want to shop at amazon, but still it is kind of annoying and if you’re, someone that has a favorite credit card that you want to use and you no longer can you’re still Going to be a little unhappy, it’s like when your cable company or hulu or maybe even youtube tv, gets in a dispute with an entertainment company. Then all of a sudden they’re telling you oh well.
We can’t carry this channel because we Couldn’t come to an agreement with the provider and they want too much money and so you’re not gon na, be able to watch your sports or see your series or whatever it is, and then the entertainment company is saying.
Well, they won’t pay for quality entertainment, so you should call them and complain and say you want to see your sports or your series and you as a consumer like I just want to see my series, but I don’t want to have to call up and complain To get It i’m already paying enough, and I know that this dispute between the two of you is not going to cause any sort of savings for me, because you really are both only caring about your bottom line. We don’t really want to be involved. This sort of like a news flash, I think, for these companies.
Sometimes we don’t care what the situation is work it out, because you’re working it to your benefit, not ours right Anyway, it will be interesting to see what happens with amazon and visa and mastercard from here amazon used to be this little upstart company that we all Loved and somewhere along the line.
They became this 900 pound gorilla, throwing its weight around starting to do some sketch stuff that maybe doesn’t feel as good as it did when they were that little upstart, and so now we’re not quite sure how we feel about amazon. At least some of us, although I still love Getting my packages, really super fast, so we’ll see what happens here in the future, with amazon and visa and mastercard.