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Amazon U-turns on decision to stop accepting Visa credit cards in UK

Just 48 hours before deadline.

Amazon UK will now continue to accept Visa credit cards, the retailer has told customers today.

Back in November, Amazon UK emailed customers who used Visa credit cards to warn that they would have to use an alternate payment method for purchases, subscriptions and Amazon Prime from 19th January.

Today, just 48 hours from that deadline, the retail giant has reached a new agreement with Visa and relented - meaning it will continue to allow Visa credit cards for the foreseeable future.

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"The expected change regarding the use of Visa credit cards on will no longer take place on 19 January. We are working closely with Visa on a potential solution that will enable customers to continue using their Visa credit cards on," the retailer told customers, in an email published by The Guardian.

"Should we make any changes related to Visa credit cards, we will give you advance notice. Until then, you can continue to use Visa credit cards, debit cards, Mastercard, American Express, and Eurocard as you do today."

The Guardian's report suggests "crisis talks" held over the weekend between Amazon and Visa have found a new solution.

Last year, Amazon blamed "the high fees Visa charges for processing credit card transactions" as the reason it was set to inconvenience millions of UK customers.

The Independent subsequently reported Amazon was expected to lose £1.4bn from the move, with Visa also set to lose a hefty amount as part of the cut it takes on each transaction.

Writing on Twitter, Money Saving Expert founder Martin Lewis said Amazon's posturing was likely a "negotiating tactic for Amazon to get its fees reduced... because Visa is increasing transaction rates now the EU cap no longer applies (post Brexit)".