Amazon halts plan to block UK Visa credit cards amid talks

Amazon has dropped plans to block UK Visa credit cards payments this week as the two sides continue to try to resolve a dispute over payment fees.

"The expected  change regarding  the use of  Visa credit  cards  on Amazon.co.uk  will no longer take place on January 19," Amazon said.

Visa said it was "working closely to reach an agreement".

Amazon said last year that Visa payment costs were "an obstacle" to providing the best prices for customers.

But Visa accused Amazon of threatening to restrict consumer choice. "When consumer choice is limited, nobody wins," Visa said.

Neither company have indicated a timescale for when the talks might conclude. "We are working closely with Visa on a potential solution that will enable customers to continue using their Visa credit cards on Amazon.co.uk," Amazon said in an email to customers.

An EU-enforced cap on fees charged by card issuers is no longer in place in the UK following Brexit.

Both Visa and its rival Mastercard have raised the so-called interchange fee on cross-border transactions between businesses in the UK and the European Union following Brexit.

However, Amazon and Visa said last year that their dispute had nothing to do with the UK leaving the EU.