Where can Visa credit card holders go when Amazon stops accepting their payment next year?

Amazon’s decision to no longer accept payments from UK-registered Visa credit cards from next year will undoubtedly cause concern among some shoppers.

Millions of Britons rely on Amazon’s marketplace for all manner of items from groceries to last minute Christmas gifts – in November last year alone there were 579.5 million desktop and mobile visits to Amazon’s UK website, according to Statista.

However, UK customers buying products will still be able to use Visa debit cards, Mastercard and Amex credit cards as well as Visa credit cards issued outside of Britain.

Amazon’s move against Visa could therefore present the perfect opportunity for Visa bearing credit card holders to take stock of what else is on the market.

While returning to using a debit card might seem like the most obvious solution for many shoppers, credit cards offer better protections. 

This is because using a credit card means you can be covered under Section 75 of the Consumer Credit Act. 

This affords shoppers protection when buying items between £100 and £30,000 and allows shoppers to make a claim against their credit card company to get their money back if a retailer or trader lets them down and refuses to honour the contract properly.

For example, if the item you order fails to be delivered or if it arrives not in a condition described when purchased you will be within your rights to claim the money back.

Katie Brain, banking expert at Defaqto said: ‘Amazon’s decision is bad news for consumers as it limits their choice of payment types. For those who only have a visa credit card, they will be restricted from January.

‘Also, if you are looking to make a purchase of an item which is worth £100 or more it is wise to use a credit card instead of a debit card as you are then protected by section 75 if something goes wrong.

‘This is especially useful if you are making a purchase through Amazon marketplace which are third party suppliers.’  

‘Any items purchased directly from the supplier between £100 and £30,000 using a credit card, so directly with Amazon, would be covered under Section 75.’

For purchases from sellers via Amazon Marketplace, the same protection should apply, according to Defaqto.

However, this does appear to depend on how this is viewed by the credit card provider. 

‘To make a claim using Section 75, a direct relationship to the supplier has to be proven,’ said Brain.

‘So, consumers need to be aware of this, especially when making large purchases.’

Amazon’s move against Visa could therefore present the perfect opportunity for Visa bearing credit card holders to take stock of what else is on the market.

We’ve taken a look at Mastercard and American Express credit cards to find out what could offer some good alternatives to Visa. 

It’s also worth pointing out that Visa and Amazon could work something out in the next two months – but that’s not guaranteed. 

For any shoppers looking for 0 per cent purchase credit card enabling them to buy items and then gradually pay off the cost over the longest possible period of time without being charged interest, then this might be for you.

It offers 0 per cent interest on purchases for up to 23 months from the moment you open an account.

However, it’s worth noting that depending on your circumstances, Tesco may offer a 0 per cent interest period of 18 or 14 months instead.

To keep the 0 per cent rate you will need to at least make your minimum payment on time every month.

Aside from Tesco, M&S, MBNA, Lloyds Bank and Sainsbury’s all have Mastercards offering over 20 months of 0 per cent interest on purchases, with no annual fee attached. 

The best port of call for everyday spending comes from American Express.

It does offer some more lucrative options for those who wish to maximize their points – notably its gold card – but its standard cashback card doesn’t come with a whopping annual fee to justify.

You can either choose between its free Platinum Cashback Everyday Card, or similarly named Platinum Cashback Card which comes with a £25 annual fee.

Amex's Express Platinum cashback everyday credit card currently offers 5% cashback on any purchases for the first three months of card membership up to a limit of £100

Amex’s Express Platinum cashback everyday credit card currently offers 5% cashback on any purchases for the first three months of card membership up to a limit of £100

Its free card currently offers 5 per cent cashback on any purchases for the first three months of card membership up to a limit of £100.

Thereafter, each year you’ll receive 0.5 per cent cashback when spending up to £10,000 and 1 per cent cash back on everything you spend after that.

As long as you spend a minimum of £3,000 in each given year, every full £1 you spend on purchases qualifies for cashback.

Paying card holders will have a similar experience but have the added benefit of earning 0.75 per cent cashback on spending up to £10,000 and 1.25 per cent for everything over that amount in a given year.

The maximum cap on the 5 per cent introductory offer for the first three months is also increased from £100 to £125. 

Like all credit cards, is crucial to play to the rules – that is, pay if off each month or face hefty interest. 

For anyone with a local Tesco or M&S nearby then both these stores are offering credit cards with great in store rewards benefits, although you’ll need to be prepared to pay a monthly charge for the privilege.

M&S Club Rewards is exclusively available to M&S Credit Cardholders. If you do not hold an M&S Credit Card, you will need to successfully apply for one before you can open M&S Club Rewards.

M&S Club Rewards is exclusively available to M&S Credit Cardholders. If you do not hold an M&S Credit Card, you will need to successfully apply for one before you can open M&S Club Rewards.

The £7.99 a month Tesco Clubcard Plus offers five points per £4 spent on top of 10 per cent off your groceries in-store, twice a month.

Tesco Clubcard Plus customers can expect to see an annual reward benefits of £129.12 for every £300 spent, according to number crunching by MoneyComms.

M&S Club Rewards comes with a £10 monthly charge and is exclusively available to credit card holders with the retail giant.

It provides a host of benefits including unlimited next day delivery for M&S online purchases, additional reward points on M&S shopping and overseas spending and a plethora of vouchers.

The net annual benefit for an M&S credit card customer with Club Rewards membership is £153 for £300 of monthly in-store spending, according to MoneyComms. 

If you can’t use them, then you might as well join them instead and the rumour mill went into overdrive on social media that this was part of Amazon’s decision to stop accepting Visa credit.

For those who regularly shop on Amazon this could be a great choice.

New Card holders get a £40 Amazon Gift card on approval

New Card holders get a £40 Amazon Gift card on approval

The card offers £10 gift cards for every 1,000 points earned, with a £40 gift card up front.

To build up your points tally, Prime members get 3 points for every £2 spent on Amazon’s website, whilst non Prime members get 1.5 points for every £2 spent on its website.

This means an Amazon Prime customer using this card on the Amazon website will need to spend a total of £667 to receive a £10 gift card.

Whether you are a Prime member or not, you will also get half a point for every £2 worth of spending elsewhere. 

For those who would be more comfortable with a debit card then it won’t get much better than what digital bank, Chase are offering – at least in the short run.

The app based bank, which was founded by JP Morgan, has announced it will be offering 3 per cent cashback when you use its card on Amazon’s website up until the end of 2021.

The promotion will run until 31 December, and will be applicable to up to £5,000 spent on the site – that could be worth £152 if fully utilised.

Chase are offering 3 per cent cashback when you use its card on Amazon's website up until the end of 2021.

Chase are offering 3 per cent cashback when you use its card on Amazon’s website up until the end of 2021.

Its current account already offers customers 1 per cent cashback on spending for the first 12 months, although there are some exceptions.

Another perk that comes with holding this account is its small change round-ups feature from which customers can earn 5 per cent interest.

It means account holders can automatically save as they spend by rounding up their debit card purchases to the nearest £1, and depositing the small change into a separate account where it will earn interest at 5 pre cent.

It is also fee-free when using this debit card abroad so you won’t be charged any fees by Chase when using their card while travelling, including for cash withdrawals at ATMs abroad. 

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