Amazon reaches agreement with Visa on payment fees

[NEW YORK] Amazon.com told customers that it has reached an agreement with Visa over the fees it pays to accept the payments giant's cards on its website.

The retailer said it will no longer charge customers who use Visa cards on its site in Singapore and Australia an extra fee and it will not turn off Visa credit cards from amazon.co.uk.

"We've recently reached a global agreement with Visa that allows all customers to continue using their Visa credit cards in our stores," Amazon said in the email.

"Amazon remains committed to offering customers a payment experience that is convenient and offers choice."

Amazon and Visa had been feuding over the so-called swipe fees that the retailer pays each time a consumer uses their card at checkout. While the customer's bank reaps most of that fee, it's Visa that sets the levels merchants are charged.

"Visa is pleased to have reached a broad, global agreement with Amazon," a Visa spokesman said in an emailed statement. "This agreement includes the acceptance of Visa at all Amazon stores and sites today, as well as a joint commitment to collaboration on new product and technology initiatives to ensure innovative payment experiences for our customers in the future."

While Amazon has been surcharging customers who use Visa cards on its site in Singapore and Australia for months, it sought to up the ante late last year with a threat to stop accepting the firm's credit cards by UK customers entirely. Last month, the 2 companies said they were working on an agreement, narrowly avoiding an outright ban on UK cards. BLOOMBERG