Sina Technologies Inc. reportedly said it could resolve a dispute with e-commerce giant Amazon.com Inc., according Amazon.com to a news release on Dec. 9. The latter plans to ban visa credit cards issued in the UK from next month.
Vasant Prabhu, Visa's chief financial officer, told an investor conference that Amazon's move in the UK was confusing for the payment company because the fees merchants pay Visa and banks are heavily regulated every time they swipe. Amazon said it took the step because the cost of accepting credit card payments was rising.
Mr Prabha said: "There is absolutely no need for British consumers to be punished for something that has nothing to do with them. Unfortunately, Amazon has chosen to punish a group of consumers who have nothing to do with it. ”
He added: "We've addressed similar issues before and our relationship with Amazon will go back to the level we had with a co-branded credit card." Of course, a slap doesn't ring. ”
Visa plays a unique role in the payments space. Like Mastercard Inc., the company sets a credit card fee for merchants. Visa has long faced criticism from merchants for its rising costs, even though card issuers receive most of the fees.
Amid rising tensions with Visa, Amazon is also considering swapping its popular co-branded credit card for MasterCard. Amazon's move in the UK also draws on the approach of rivals Walmart Inc. and Kroger Co., which have imposed similar temporary bans on Visa cards in the past.