Visa Chief Financial Officer Vasant Prabhu Expects to Resolve Fee Row With Amazon


Visa hopes to resolve its credit card fee dispute with Amazon in the UK and continue its co-branded credit card partnership with the e-commerce giant in the United States, its chief financial officer told Reuters.

heroine said on Wednesday that he would stop taking payments from Visa Credit cards in the UK from mid-January next year.

“We have resolved these things in the past and I am sure we will solve them in the future,” Vasant Prabhu said in an interview on Friday. not impressed.”

Visa’s shares fell after Reuters reported Prabhu’s comments, falling 0.5 percent from the day’s low of 1.4 percent. The shares then gave back those gains and were trading down 1.4 percent for the last time.

Amazon said in its Wednesday statement that credit card fees “should decrease over time in line with technological advancements, but instead they continue to be high or even rising.”

Analysts have suggested that its approach could be a negotiating strategy. In the past, other large retailers have settled fee disputes with Visa after announcing they would stop taking their credit cards in narrow areas of their businesses.

Walmart’s The entity in Canada, for example, stopped accepting Visa credit cards in 2016 after being unable to reach an agreement on fees. Seven months later, the companies said they had resolved the issue.

Prabhu said reports on Wednesday that the dispute was the result of a ban on fees imposed by the EU no longer applied in Britain because Brexit was “completely wrong”.

He said the rule applies to cross-border transactions between the EU and the UK, while the dispute pertains to domestic transactions.

In recent months, Amazon has also introduced surcharges on customers using Visa credit cards in Singapore and Australia, citing higher fees as relations between the two companies appeared to be deteriorating.

After some analysts expressed concern that Amazon’s move to the UK could be a harbinger for the retailer abandoning Visa’s credit cards in other regions, Prabhu said he expected it not to materialise.

“Restricting consumer choice doesn’t help traders either,” Prabhu said. “If a merchant tells me that I cannot use my preferred card that is not useful to me as a consumer.”

Amazon also said it is considering quitting Visa as a partner on its US co-branded credit card and is in discussion with both master card and visa.

Visa said it is in discussions about continuing its partnership with Amazon and expects it to continue.

“We hope to reach the point where our relationship with Amazon is the same as it was before,” Prabhu said.