Amazon 0.5% Visa Surcharge

colaman on 01/09/2021 - 11:04
Last edited 01/09/2021 - 15:15 by 1 other user

Comments from Amazon are that this Starts 1 November 2021 on Visa credit. To avoid, use debit, ZIP or non-Visa credit.

What does everyone think about this. I use Visa as my main credit card. Is this because of deals done with other credit companies that Amazon benefit from?

The reason I use Visa is to benefit on reward points and I current buy a lot from Amazon. Do I now look at switching to another provide like Mastercard?

Edit : This is an email I just received to confirm it

We’re writing to notify you of a change to Visa credit card payments on Amazon.com.au.

Due to the costs associated with Visa transactions, beginning 1 November 2021, Amazon will apply a 0.5% surcharge to purchases made using Visa credit cards on Amazon.com.au. You can avoid the surcharge by using any debit card, Zip, or any non-Visa credit card like a Mastercard, Amex, or UnionPay card. Additionally, we are working to add more, faster and cheaper payment options for customers.

We know this may be an inconvenience, and our customer service team is standing by to help. Thank you for your understanding, and for being an Amazon customer.

Financial Amazon VISA

Related Stores

Amazon AU
Amazon AU
Marketplace
Visa
Visa

Comments

    • Autonomic on 01/09/2021 - 11:35
      +2

      Why would they charge for Visa usage and not MC or Amex? Seems like it's specifically targeted to Visa.

      • pjetson on 01/09/2021 - 15:00

        Because Visa is charging them more?

        Or maybe it's an attempt at leverage?

        • Autonomic on 01/09/2021 - 15:21

          I wouldn't think Visa would charge more than Amex. My thoughts are leverage.

    • capslock janitor on 02/09/2021 - 14:21

      Why affect Debit card payment then

  • FLICKIT on 01/09/2021 - 11:24
    +1

    Commbank do a Debit Mastercard linked to your normal savings account, I got one as a backup for travelling which I've never bothered activating, I guess I'll switch to using that for Amazon…
    https://www.commbank.com.au/banking/debit-mastercard.html

  • Seraphin7 on 01/09/2021 - 11:25
    +31

    This is a joke … whether it's Amazon or the local cafe, this drives me insane.

    Especially now the machines are wired to display a charge of $50 (or whatever), you tap your card, and then it magically becomes $50.78 (or whatever).

    Why won't businesses just embed these costs in their pricing and get rid of the surcharges?? It's not like there is no cost to handling cash!!

    Obviously, to use my example, businesses want to tell you (hoodwink you) that the price is $50, but then charge $50+.

    Just a consumer gouge.

    • AKJJ on 01/09/2021 - 11:31

      They must have a sign or tell you there will be a surcharge. Usually the little tap machines will show “Payment surcharges may apply”. It’s much better than the ‘old days’ when the amount of the surcharge was unregulated, so businesses would just charge a flat rate which could end up being 5-10% of the transaction cost.

      • lint on 01/09/2021 - 12:30

        Still see some small retail or restaurant businesses charging a flat fee like 50c for card payments under a certain amount, unfortunately. Feel cheated at the time of payment but never get around to reporting them, so that's on me.

        • capslock janitor on 02/09/2021 - 14:23

          Some places don't make it clear either.

          They might have a generic surcharge sign - but if you want the actual percentage, you have either ask or check it manually in the handheld scanner.

          Totally inconvenient.

    • PissLUR on 01/09/2021 - 11:35
      +1

      yes i am finding this now more common in Perth, WA.

    • netjock on 01/09/2021 - 11:36
      +5

      Why won't businesses just embed these costs in their pricing and get rid of the surcharges??

      You aren't that young? Remember when there was no credit card surcharges? Then RBA reforms came in and everyone didn't drop their prices, they just added the surcharges on top.

      Now you think these prices look alright and end up with a 2% surcharge when another retailer might do 1% or 0.5%

      • Seraphin7 on 01/09/2021 - 14:00
        +1

        I remember that time well. I remember the RBA reforms that were supposed to bring order to this whole situation and has just led to the mess we "enjoy" today.

        By contrast, I also remember the massive campaign that surrounded the GST and (amongst other things) that the price to the consumer had to be the "total" price paid, not a price "plus GST".

        I really can't see why we effectively can't have the same circumstance here.

        Yes, obviously some cards have different charges to others … but that's business. Businesses should surely be able to see pricing in light of all costs overall, not this ridiculous practice that does nothing to improve price transparency.

        • netjock on 01/09/2021 - 14:41

          I know businesses that only accept Visa & Mastercard because Amex and Diners is additional cost and another set of fees.

          I know merchants can negotiate rates with their bank but most small business is stuck with standard rates usually around 1.5% for visa & mastercard.

          I also see some businesses put card surcharges at 2% (mostly food outlets) which is just a 0.4% gouge. Or they prefer cash which they won't pay GST or profits tax on.

          Yes, the situation is nuts.

          Now it makes Afterpay look like it is free. When it really isn't. Afterpay I believe in their contract with stores forbid them to apply an Afterpay surcharge.

    • Platinumtelecom on 01/09/2021 - 12:07

      I guess the answer to that will be that they don’t want to penalise people paying cash/ Efptos

      What drive me absolutely insane is the small shops with stupid rules like $10 min and if you pay less than $10 by card then it is a flat 50c.
      So you are telling me my $9 transaction is costing your business 6% in transaction fees??

      • lint on 01/09/2021 - 12:32

        Yeah, this is supposed to be not allowed now. I need to be more proactive in reporting businesses that still do this.

      • Seraphin7 on 01/09/2021 - 13:56
        +4

        The whole cash/eftpos thing is a red herring, in my humble opinion.

        Cash takes time and or money to deal with.

        The eftpos machine still needs the infrastructure (and its attendant cost) that the CCs work on.

        Is everything in the shop subject to exactly the same margin? If not, is one group "being penalised" for wanting/needing to buy goods at a higher mark up?

        Can I get a discount on my purchases when I walk in grab what I need off the shelf and go through the self-serve checkout against someone that spends (wastes) a hour of the staff's time weighing up a $20 purchase?

        If the "ex-merchant fee" cost of the coffee is $4.20 and the merchant fee is 6c … just make the coffee $4.25 and be done with it … or leave the coffee at $4.20 and make the sausage rolls 10c more expensive or whatever it is you need to do.

        If you're Amazon, just increase the price of everything by 0.5% (or whatever the amount is) and go away. The prices on there are effectively random numbers anyway.

        But slugging me these few cents here, those couple of dollars there, every time I want to give you my business just reeks of nickel and diming.

        • eug on 01/09/2021 - 14:16
          +2

          If you're Amazon, just increase the price of everything by 0.5% (or whatever the amount is) and go away.

          Why should I subsidise your choice of payment method? If I buy a $1,000 item, I'd be paying an extra $5.

      • Soluble on 03/09/2021 - 06:37

        Well potentially… My visa and Mastercard fees are % based. But eftpos transactions are a fixed fee regardless of amount spent.

    • sleet on 03/09/2021 - 04:23
      +1

      Why should all consumers pay for that embedded surcharge?

      I can pay using a debit card and avoid the fee then great. I'd love to not have to pay extra because someone else decided to pay using visa credit or amex etc.

  • jimbobaus on 01/09/2021 - 11:26
    +2

    And this is why more and more banks are switching to Mastercard
    Visa keeps upping their fees to merchants, banks etc
    This does not surprise me

    We have been told by our Eftpos provider that Visa acceptance fees increasing to us also,
    Make Mastercard the cheapest option

    You can expect to see increased card fees at other retailers too

    • DogGunn on 01/09/2021 - 11:31

      Visa keeps upping their fees to merchants, banks etc

      They've been at the max interchange fee permitted by the Reserve Bank since forever.

      • jimbobaus on 01/09/2021 - 11:32
        +2

        I can tell you as a merchant
        Customers that use Mastercard is always the best for us

        They've been at the max interchange fee permitted by the Reserve Bank since forever.

        Depends on your bank, our bank charges less than max interchange fee as negotiated between us and the bank, this is increasing as the amount charged to our bank by Visa is also increasing.

        My bank has also announced they are phasing out Visa Debit and replacing it with MC Debit.

        • DogGunn on 01/09/2021 - 11:35
          +1

          Yes, Mastercard is generally cheaper. Especially for debit card and super premium transactions.

          our bank charges less than max interchange fee as negotiated between us and the bank

          The interchange is a fee that is paid by your acquirer (typically your bank) to VISA. The fee you pay is basically always going to be more than the interchange rate.

          https://www.visa.com.au/about-visa/interchange.html

          • jimbobaus on 01/09/2021 - 11:36

            @DogGunn: Ill just use Zip and pay back straight away
            or
            use a MC Debit

            i am not surprised that amazon is doing this though

            • eug on 01/09/2021 - 12:44

              @jimbobaus: Won't Zip's fees cost Amazon even more than Visa?
              edit: sorry, misread your post! But if all Visa users started using Zip to use Visa, I wonder if Amazon will take a second look at Zip.

          • williape on 01/09/2021 - 13:50
            +1

            @DogGunn: Interchange is the fee paid to your card issuer. Eg, have an ANZ Visa card, that is paid to ANZ bank. ANZ in turn pay Visa a scheme fee but that is typically <10% of what ANZ charge as interchange fee.

            • DogGunn on 01/09/2021 - 18:29

              @williape: You are correct. Can't edit my previous comment :(

  • Mobe1969 on 01/09/2021 - 11:33

    What the hell. My bank ANZ doesn't even have a mastercard. I do have a 28 degrees mastercard I guess I'll just use that for amazon.

    No way I'd get an amex after having to use and deal with one for my last job for a corporate card.

  • Mobe1969 on 01/09/2021 - 11:34
    +8

    I guess I should start just putting Amazon Gift cards on my account and use that.

    • colaman on 01/09/2021 - 11:38

      not a bad idea. I think you still get cash rewards with gift cards so might work out.

      • Mobe1969 on 01/09/2021 - 11:42

        If you figure out how - let us know. They have it on the shoprewards website page for amazon, they make you install the mobile app, and then you do it - and you can't get amazon there, just others…

        • Oneguyinmelb on 02/09/2021 - 10:01

          I plan on using giftcards from now on too. I'll just buy discounted giftcards from HCF thanks in $200 parcels and top up the account.

    • bongom on 01/09/2021 - 18:51
      +1

      All my purchases are with discounted Amazon gift cards. I've given up on cashback from Amazon.

      • cute as duck on 01/09/2021 - 23:56

        You can use gift cards to get cashback as well from eligible categories. You may already be aware

    • Spending2Much on 02/09/2021 - 13:51
      +1

      Mostly what I buy lately is grocery items, which aren't on cashback anyway.
      Come home late from work to find box ony doorstep waiting for me, better than Click and collect Coles etc.
      Usually all items are same price as C&W and discounted e-gift cards

    • Guybrush57 on 01/09/2021 - 17:42

      I want 0.5% off every VISA credit card transaction I have with every business. Can't believe the businesses are being all tense. I thought I was on ukbargain.co.uk (lolwut) with all the whining.

      it's 50c in every $100. Pffft they should just give it to me.

  • Autonomic on 01/09/2021 - 11:39

    Odd that they are targeting Visa but not MC or Amex. If you're dead set on using Visa and also have Zip, you can always use Zip on Amazon and then pay Zip off using a Visa card.

  • JimmyF on 01/09/2021 - 11:39
    +16

    What a world we live in when Amex has no surcharge and VISA does!?

    • capslock on 01/09/2021 - 11:50
      +1

      My VISA has a better rewards rate than my AMEX now so it makes sense to me.

      • mbck on 01/09/2021 - 11:55
        +3

        Which visa? And which amex?

        • Poolprouk on 01/09/2021 - 13:47

          example - Any QF visa with 1 point per dollar would be better than an amex discovery which gives 0.75 QF points per dollar. e.g NAB Signature

          • mbck on 01/09/2021 - 14:06

            @Poolprouk: Ah that's fair. I was thinking none that's free (annual fee wise).

            • dsar on 01/09/2021 - 16:26
              +1

              @mbck: Don’t think it’s fair at all. Comparing a (probably) annual fee credit card Vs card with no annual fee

      • dsar on 01/09/2021 - 16:25

        Doubt it

  • capslock on 01/09/2021 - 11:49
    +3

    Aldi has been surcharging for years and nobody cares. This will be the same.

    • kerfuffle on 01/09/2021 - 11:50
      +12

      Yeah, but that was across all card companies and not just a single one

      • capslock janitor on 02/09/2021 - 14:28

        0.5% too right.

        I use HSBC 2%CB tap&go so doesn't bother me currently.

        But it's these online purchase I would not be able to get my fee back as easily in the first place.

    • CheapskateQueen on 01/09/2021 - 21:10
      +2

      i do care and always tried to pay cash at Aldi.

      I hate surcharges.

      bummer, i've only recently become a fan of amazon (prime for $7 has been great for delivery during lockdown) but surcharges are a huge turn off.

  • DingoBilly on 01/09/2021 - 11:49
    +13

    I wonder if this is a political play.

    Behind the scenes VISA wants to up rates or not give a discount - so Amazon puts this out there to put pressure on VISA to back off.. otherwise I imagine VISA would see some reduction in numbers. Not sure if it's substantial enough to give Amazon leverage but this is a pretty big thing for Amazon to put out there like this.

    • DogGunn on 01/09/2021 - 11:51
      +11

      It is 100% a play by Amazon. Pretty sure they're not happy with VISA Asia Pacific.

      • bamzero on 01/09/2021 - 12:09
        +2

        Like when they refused to sell to Australia (for a while) from Amazon US when the GST was forced upon them (though I'm kinda on their side on that one, Australian government shouldn't be forcing other countries to collect tax on its behalf)

        • mvinaus on 02/09/2021 - 19:01

          But on the plus side if a business sells to you when you are physically in Australian they are "conducing business in Australia" with all the consumer guarantees associated by the ACL.

    • Kenb0 on 01/09/2021 - 12:18
      +2

      Would guess it’s similar to when Costco cut off Amex(who was their preferred provider) worldwide. Someone’s calling the other’s bluff

      • netjock on 01/09/2021 - 15:04

        Amex issued Costco cards. The financial institution behind the card because Costco didn't want to run their own FI.

        I think in certain countries there is an Amazon credit card which is mastercard issued by discovery card.

    • capslock janitor on 02/09/2021 - 14:31

      VISA wants to up rates or not give a discount

      Wdym? Via giving discount ?

  • this is us on 01/09/2021 - 11:50
    +6

    Surcharge for VISA but not for AMEX is very unusual, but I guess Amazon was able to negotiate with Amex but not with VISA, but that doesn't sound good. Maybe Amazon is playing to force a negotiation, and there is a chance they will step back before 1st November.

    If eligible, we can buy Amazon egift cards using VISA credit card (Suncorp?) but we might not have the benefits of paying with credit card.

  • calinya on 01/09/2021 - 11:53
    +4

    Yep Amazon gift cards are the way to go. I'm not a fan of seeing 20+ Amazon transactions on my c/c, especially when they charge on dispatch. So better to just purchase a gift card and then deduct transactions out of that.

    • mfwhatever on 02/09/2021 - 07:53
      +3

      And check your membership reward programs for discounts on Amazon gift cards. With HCF I get 5% off (minus a 1% credit card surcharge 🤷‍♂️ - makes it 4.05%).

    • capslock janitor on 02/09/2021 - 14:32

      I always thought they had at least a pending charge show up?

  • WeHaveRicePudding on 01/09/2021 - 11:58
    +2

    This actually started in Singapore which is due to kick it off on 15th of this month. But I believe that Amazon will eventually introduce it to all their stores globally as they are trying to take a stand against Visa…..sadly by passing the costs onto the consumer.

    • leiiv on 01/09/2021 - 14:17

      What's with this fight with visa? Was it in the news?

    • inventel on 01/09/2021 - 17:46

      I would be interested to see how they approach this globally. In a lot of jurisdictions, it’s illegal to pass on a credit card fee (including many high value US states such as California).

      Often the way around it is to offer a discount for paying with a method you want to encourage (imagine a discount for paying with something other than Visa credit). Things become complicated if they do that, as it makes price matching hard.

      But regardless, if anyone’s big enough to be able to work out how to do this, it’s Amazon.

  • jace88 on 01/09/2021 - 12:06
    +1

    Easy fix: remove my Visa card.

    But in all seriousness, doesn't everyone just buy discounted egift cards from Suncorp Benefits (or similar) and use their Visa card anyway?

    • PissLUR on 01/09/2021 - 12:10

      limited to $500 spent per month.

      • bongom on 01/09/2021 - 18:56

        Macquarie Marketplace purchases are limited to a $5000 daily spend and they sell a $1000 Amazon gift card.

    • zooter on 04/09/2021 - 10:37

      Mostly all my purchases are through gift cards from every store…I do lose protection purchase, but don't really need it for low end items..have to be careful though to use normal cc for electronics and the like to get additional warranty etc.

  • fuzor on 01/09/2021 - 12:16

    This is Visa's issues. And not Amazon's fault. Imagine charging more than Amex but not have comparible rewards of Amex's. Its a shame that I only have 1 credit card and it is a Visa

    • gromit on 02/09/2021 - 10:31

      This is Ozbargain, surely we all churn cards regularly? Hell I even have a spreadsheet of cards and dates so I know when I am next eligible for joining bonus when churning.

  • bazingaa on 01/09/2021 - 12:17

    just use a debit card

  • Shikha966 on 01/09/2021 - 12:22
    +1

    “You don’t need a visa, if you have Amex.” : Saw this ad at an airport.

    • gromit on 02/09/2021 - 10:33

      Amex have fantastic points rewards, But it is pretty tough to only have an Amex, you really have to have a MC or Visa for everywhere that rejects amex (which is still a LOT of places) or charges large fees for amex.

    • capslock janitor on 02/09/2021 - 14:36

      That's a funny play.

  • BargainGeezer on 01/09/2021 - 12:44
    +1

    I assume this is because MasterCard and Amex charge a flat rate, while Visa charges higher amounts for their Standard, Platinum, Signature, and Infinite cards (with those last two often attracting fees above what Amex charge).

    • mbck on 01/09/2021 - 14:09
      -1

      Australia doesn't many options for signature (virgin money) or infinite (citibank)

      • Richfield on 01/09/2021 - 14:19

        Multiple banks have Signature cards.

        • mbck on 01/09/2021 - 14:42

          Nab and various wespac affiliated (same card features, different bank name).

          Other regions have literal multiple choices.

          I doubt those types will come to au since the bnpl market is growing here.

        • capslock janitor on 02/09/2021 - 14:36

          What's a signature card?

      • justdigi on 01/09/2021 - 15:00
        +2

        I have Visa Signature from Macquarie Bank.

  • fozzie on 01/09/2021 - 13:12

    This is highly annoying as I get points from my visa. Luckily I have an amex

  • spersephone on 01/09/2021 - 13:54

    It’s not exactly clear whether a Visa Debit card is actually okay, because that’s still being processed by Visa. I have three Visa cards attached - two debit and one credit. Happy to switch to the debit card, but the only payment option I see is to add a credit card (or card that uses the credit processing facility).

    Edit: It’s not as easy to simply add credit to your Amazon account on the Australian site, as it is in the US site. You have to buy an e-gift card and then apply it to your account. You should be able to just recharge your balance. There are some things I miss from the American Amazon, and I don’t know why they can’t offer the same things here.

    • colaman on 01/09/2021 - 14:07

      Yes Visa debit is fine

      You can avoid the surcharge by using any debit card

  • techlead on 01/09/2021 - 15:02

    Additionally, we are working to add more, faster and cheaper payment options for customers

    Crypto? Bezos ain't getting my Bitcoin or other crypto. He gets my trash aka cash.

    • ProlapsedHeinous on 02/09/2021 - 17:41

      As a former google & facebook employee, and a millionaire, I agree with this comment.

      • techlead on 02/09/2021 - 20:27

        I'm not related to that shady guy lol

  • rektrading on 01/09/2021 - 15:22
    +3

    This is the most efficient way for retailers to cut out the middlemen.

    Amazon

    You will leverage your domain expertise in Blockchain, Distributed Ledger, Central Bank Digital Currencies and Cryptocurrency to develop the case for the capabilities which should be developed, drive overall vision and product strategy, and gain leadership buy-in and investment for new capabilities.

    Deep understanding of the digital / cryptocurrency ecosystem and related technologies
    https://www.amazon.jobs/en/jobs/1644513/digital-currency-and…

    Walmart

    Digital Currency and Cryptocurrency Product Lead

    Job Description

    Are you passionate about Digital Currencies and driven by opportunities to scale new products and businesses? As one of the largest retailers and e-commerce companies, Walmart enables broad set of payment options for its customers. As Digital Currency/ Cryptocurrency lead at Walmart you will be responsible for developing the Digital Currency strategy and product roadmap. As an expert in Digital Currencies/ Cryptocurrency and Blockchain related technologies, you will drive the vision for the product and capabilities roadmap. You will provide the leadership to identify technology and customer trends and the investments needed to build on those trends.
    https://web.archive.org/web/20210815232815/https://careers.w…

    Apple

    5+ years experience working in or with alternative payment providers, such as digital wallets, BNPL, Fast Payments, cryptocurrency and etc..
    https://web.archive.org/web/20210526131805/https://jobs.appl…

    • techlead on 02/09/2021 - 20:28

      Exciting times. Let's see how El Salvador implements Bitcoin. This is time for the lightning network to showcase its capacities.

  • Munki on 01/09/2021 - 15:52
    +6

    I guess, for everything else, there really is Mastercard.

  • Tony-Abbott on 01/09/2021 - 17:02

    Even the credit card fees on Qantas have a VISA payment higher than an AMEX now. I reckon VISA is doing this on their end.

  • burningrage on 01/09/2021 - 17:19

    Citibank should have technically moved to Mastercard but mine is still Visa.

  • JungliChilli on 01/09/2021 - 18:17

    Get a different credit card if you want to save the 0.5%

  • AlexVictory on 01/09/2021 - 18:21
    +1

    I also just got this email and am in a similar predicament. I have a Visa as my main credit card and get reward points which can be used on gift cards etc.
    As they are steering us towards Debit card or Zip, doesn't it make sense to use Zip and to ENSURE YOU DON'T GET CHARGED THE $6.00 MONTHLY FEE - pay it off at the end of every Zip monthly cycle.
    Thoughts Oz community?

    • popsiee on 01/09/2021 - 18:48

      No cashback in my categories . Even if there was pure gift cards up to about 12 X the Suncorp limit if required .

    • Tony-Abbott on 01/09/2021 - 21:17

      No, they are steering you towards any other card than Visa, not really a hard one to figure out.

Login or Join to leave a comment
Login Join