The decision comes just days after Britain’s telecom company BT announced that it would stop accepting Visa credit cards shortly after Christmas. Visa won that round, but if the credit card boycott continues, it could create a double-whammy for Amazon, which currently accepts Visa in the United States, Canada, Australia, Germany, and Japan.
“The Amazon customer card provides us with enhanced payment options, including integrated bill payment and reduced fraud risk,” said Nicky Phillips, a spokeswoman for the company, in a statement sent to The New York Times. “Given this, we are currently evaluating our options to continue providing these benefits to customers,” including giving the user a full refund for the amount paid, she said.
Companies use credit cards to incentivize their customers to shop on their sites and to entice them to pay their bill quickly. Visa, for its part, said that Amazon’s decision to drop the cards because of inadequate user satisfaction was “deeply concerning” and part of a strategy to negatively impact the US economy.
The spokeswoman told The Times that some shoppers who are from “low income, low education backgrounds … may be put off by increasing late fees and extra fees.” The company is also concerned about how “they may respond negatively if these costs are passed onto them by Visa or American Express.” The spokeswoman said that if they are able to find a non-Visa credit card that meets Amazon’s needs and customer satisfaction standards, they will continue to accept the cards.