Amazon plans to block UK issued Visa Credit Cards

Blocking UK- issued Visa cards is a big move from Amazon that’s sure to cause a stir but Curve users will be safe from any issues caused by it. Some of the best solutions Curve gives are often the ones we never expected it to!

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With the massive declines?

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Will Amazon’s future plans to stop accepting Visa cards issued in the UK effect Curve at all?

Curve is a Mastercard but if the underlying payment card is Visa, will that still be accepted?

The merchant (Amazon in this case) can’t see which underlying card is selected. So when paying with your Curve card on Amazon, for Amazon you are paying with a MasterCard.

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This is important to note that is for only UK Visa Credit card are affected, debit card are not!!

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That’s why this is going to be a good business opportunity for Curve.

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I can confirm it will be accepted. As all Amazon see is your Curve card not the underlying card.

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Great for customers and hopefully curve will get many more customers on the back of this.

But surely not great for Curve generally? If mastercard fees are low and visa (credit) card fees are much higher - everytime customer uses underlying visa credit card, curve will lose money?

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Visa’s international transaction charges are to be raised.

It seems to be the case that Amazon charges the UK Visa cards in GBP, but not in the UK, and so they pay the international fees. Can’t think why they’d be completing the sale elsewhere…

This has been misreported by most of the UK media. It’s yet another negative impact of Brexit.

Regulation (EU) 2015/751 caps interchange fees at 0.3% for intra-EU card payments.

Following Brexit, the UK continues to cap interchange fees at 0.3% for intra-UK card payments (retaining the EU directive in UK law), but cannot regulate interchange fees charged in the EU.

As Amazon is based in Luxembourg, this means that there’s no longer any cap on the interchange fees paid by Amazon for processing payments by UK-issued cards. Therefore Visa has hiked its interchange fees in the EU for accepting UK-issued cards, which it couldn’t do before Brexit. Amazon doesn’t want to pay the increased interchange fees.

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So has MasterCard - in fact they announced their (identical) change before Visa did…

Which probably means Amazon has a deal with Mastercard to be charged less.


Amazon now gives £40 to get their credit card, previously £10

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Important for UK credit card holders to remember that if they use Curve rather then a credit card with Amazon (or elsewhere), they lose Section 75 protection for eligible transactions.

That is much more powerful than the Customer Protection offered by Curve.

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What is the exact difference?

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Section 75 is law and enforceable by the Courts. Curve’s Consumer Protection is not.

The Consumer Protection (which is mainly just the chargeback scheme) has multiple exemptions.

Section 75 makes the card issuer jointly liable in law for the item or service purchased, this is not the case with Curve.

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That’s not true. Section 75 of the Consumer Credit Act 1974 is a statutory right. Curve’s protection is a contractual right between Curve and the consumer, confirmed by Section 50 of the Consumer Rights Act 2015. Statutory rights and contractual rights are both enforceable in the courts and by the Financial Ombudsman Service.

Agreed. The key difference between Section 75 and card issuers’ chargeback is that Section 75 can cover amounts that exceed the original transaction amount, e.g. consequential losses. For example, if you book a flight for £500, the airline goes bust just before the flight, and a replacement flight on another airline now costs £1,000, then you can claim the cost of the replacement flight in respect of breach of contract. With card issuers’ chargeback, you would be limited to the original transaction amount of £500.

Exactly. It puts a far greater onus on card issuers to put things right.

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The other side of the story…

https://www.ft.com/content/70ef30df-55b1-4859-8262-f33c1a0b9a7f

VISA could set back old prices. Problem solved then? If they dont want to do that, well - bye bye amazon sales.