Since the EU cap on domestic card transactions in the UK of 0.2%/0.3% has remained in place post Brexit how can the dispute be a Brexit issue?
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Transactions which take place solely within the UK, where the point of sale (‘merchant’), acquirer and card issuer are all within the UK, are covered by the onshored IFR (‘UK IFR’) and subject to the interchange fee caps as before.
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It's also worth noting that both Visa and Mastercard have increased their Interchange fees to the same levels on UK customers buying from the EEA.
However only Visa have introduced the same fees for EU cards buying from UK outlets.
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It appears therefore that Amazon are baulking at Visa increasing their domestic fees from a previous discounted level to higher one that still must be less than the cap.
This is a business decision by Visa which they will have to seriously reconsider I suspect.
There is no love lost between Amazon and Visa with Amazon imposing a customer surcharge on Visa transactions in both Australia and Singapore.
Amazon are also reconsidering their partnership with Visa on their in-house credit card in America.