Kiwis buying from Amazon Australia no longer face Visa card surcharge

A Visa logo on a smartphone with Amazon logo on a background screen
A global deal has been struck between the shopping and payment giants. Photo credit: Getty Images

Kiwis buying from Amazon will no longer face a surcharge if paying by Visa card after an agreement between the shopping and payment giants.

Amazon began the surcharge on its Australian store on November 1, 2021, announcing that 0.5 percent would be added due to "costs associated with Visa transactions".

However a new "global agreement" has removed that necessity.

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

"As of 17 February 2022, Visa credit card purchases on will no longer incur a surcharge."

Amazon began shipping direct to New Zealand from Australia in July last year.

The agreement brings to an end a standoff between the companies that included a threat to stop all Amazon customers in the UK from using Visa cards.

That was avoided at the last minute, with the companies announcing a "potential solution" was being negotiated.

Analysts believed that Amazon was trying to assert its dominance and use its bargaining power to lower fees charged by credit card providers.

No details of the deal have been disclosed.

"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," a Visa spokesperson said.

The Jeff Bezos-founded company had previously said it was considering dropping Visa as it's partner on co-branded credit cards because of the high fees.

Walmart in Canada had a similar issue with Visa in 2016, announcing it would no longer accept it as a payment. The companies resolved the issue after seven months.