Bernstein analyst Harshita Rawat notes that Amazon.com Inc (AMZN) would stop accepting Visa Inc (V) credit cards issued in the U.K. starting on January 19, 2022. At the same time, Amazon offered some affected customers £20 to incentivize them to switch to another payment method. What Happened The analyst pointed out that the action does not affect Visa debit cards or Visa credit/debit cards issued outside the U.K. Rawat believes this is “clearly a show of strength by Amazon” in its likely ongoing negotiations with Visa over the cost of credit card acceptance. The news follows surcharging announcements on Visa credit cards in Singapore and Australia a few months ago. The overall financial impact to Visa is negligible, but the analyst does believe that this news will continue to weigh on Visa’s multiple until this gets resolved. It will likely further intensify concerns regarding large merchants now potentially having greater …
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