Amazon considers switching co-brand card from Visa to Mastercard - Bloomberg

Nov. 17, 2021 3:34 PM ETVisa Inc. (V), MA, AMZNPYPLBy: Liz Kiesche, SA News Editor111 Comments

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  • Amazon.com (AMZN +0.4%) is considering the possibility of switching its co-brand credit card to Mastercard (MA -2.8%) as the e-commerce giant ramps up its dispute with Visa (V -5.5%) over credit card fees, Bloomberg reports, citing people familiar with the matter.
  • The potential to switch to Mastercard (NYSE:MA) may give Amazon (NASDAQ:AMZN) leverage in its talks to renew the credit card agreement and reducing transaction fees. Wall Street analysts were saying that the e-commerce retailer's move to drop Visa credit cards issued in the U.K. as a payment option on its U.K. website acts more as a negotiating tactic to get lower transaction fees.
  • Earlier today, Amazon (AMZN) confirmed: "As a result of Visa's continued high cost of payments, we regret that Amazon.co.uk will no longer accept U.K.-issued Visa (NYSE:V) cards as of 19 January 2022."
  • The e-commerce retailer has also imposed small surcharges on Visa (V) purchases in Singapore and Australia. Last week, Amazon (AMZN) said it will allow customers to pay with PayPal's (NASDAQ:PYPL) Venmo starting in 2022, giving Amazon users another payment option beside traditional credit cards.
  • CNBC's Jim Cramer sees the pullback in Mastercard (MA) as a buying opportunity, on the basis that even if the credit card network doesn't get the Amazon card business, it still won't be any worse off.
  • SA contributor ANG Traders says the selloff in the two cash flow kings is overblown.

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