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

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

Millions of Brits rely on Amazon’s marketplace for all sorts 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 site, according to Statista.

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

While going back to using a debit card may seem like the most obvious solution to many shoppers, credit cards offer better protection.

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

This offers shoppers protection when purchasing goods worth between £100 and £30,000 and allows shoppers to file a claim against their credit card company to get a refund if a retailer or merchant allows them to give them away and they refuse to honor the contract properly.

For example, if the item you ordered fails to be delivered or if it does not arrive in the condition described at purchase, you will be within your rights to claim a refund.

“Amazon’s decision is bad news for consumers because it limits their choice of payment types,” said Katie Breen, banking expert at DeFacto. “For those with only a Visa credit card, they will be restricted from January.”

Also, if you’re looking to buy an item worth £100 or more, it’s wiser to use a credit card rather than a debit card because you’re protected under Section 75 if something goes wrong.

“This is especially useful if you’re making a purchase through Amazon’s marketplace which are third-party suppliers.”

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

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

However, this seems to depend on how the credit card provider views it.

“To file a claim using Section 75, a direct relationship with the supplier must be demonstrated,” Brin said.

“Therefore, consumers should be aware of this, especially when making large purchases.”

Thus, Amazon’s move against Visa could provide the perfect opportunity for Visa credit card holders to take stock of what’s in the market.

We’ve looked at Mastercard and American Express credit cards to see what might offer some good alternatives to Visa.

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

For any shoppers looking for a 0 percent credit card that enables them to purchase items and then gradually pay off the cost over the longest possible period of time without charging interest, this could be for you.

It provides 0 percent interest on purchases for up to 23 months from the moment an account is opened.

However, it should be noted that depending on your circumstances, Tesco may offer a 0 percent interest period of 18 or 14 months instead.

To maintain the 0 percent rate, you’ll need to at least make the minimum payment on time each month.

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

The best everyday spending outlet comes from American Express.

It does offer some lucrative options for those who want to increase their points – particularly the Gold Card – but its standard cashback card doesn’t come with a huge annual fee to justify it.

You can either choose between the free Daily Platinum Cashback Card or the similarly named Platinum Cashback Card which comes with an annual fee of £25.

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

After that, each year you’ll earn 0.5 per cent cashback on spending up to £10,000 and 1 per cent cashback on everything you spend thereafter.

As long as you spend at least £3,000 each year, every full £1 you spend on purchases is eligible for cashback.

Payment 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 introductory offer has also been increased by 5 per cent for the first three months from £100 to £125.

Like all credit cards, it’s crucial to stick to the rules — pay if monthly or face high interest.

For anyone with a local Tesco or M&S nearby, both stores offer credit cards with great in-store benefits, though you’ll need to be prepared to pay a monthly fee for the privilege.

Tesco Clubcard Plus £7.99 a month offers five points for every £4 spent plus 10 per cent off your in-store purchases, twice a month.

Tesco Clubcard Plus customers can expect to receive annual bonus benefits of £129.12 for every £300 spent, according to the Moneycoms report of figures.

M&S Club Rewards come in at £10 per month and are exclusively available to credit card holders with the retail giant.

It provides a range of benefits including unlimited next day delivery for online purchases from Marks & Spencer, bonus points on Marks & Spencer shopping and spending abroad and a plethora of vouchers.

The annual net interest 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 it, you can also join it instead, and rumors swirled on social media that this was part of Amazon’s decision to stop accepting Visa credit.

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

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

To build up your points balance, Prime members get 3 points for every £2 spent on Amazon, while non-members get 1.5 points for every £2 spent on their website.

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

Whether you’re a Prime member or not, you’ll also earn half a point for every £2 you spend elsewhere.

For those who would be more comfortable with a debit card, it doesn’t get much better than the digital bank, which Chase offers — in the short term at least.

The app-based bank, which was founded by JP Morgan, has announced that it will offer 3 percent cash back when using its card on Amazon through the end of 2021.

The promotion will run until 31st December, and will apply to up to £5,000 spent on the site – which could be worth up to £152 if used in full.

Its checking account is already offering customers 1 percent cash back on spending for the first 12 months, though there are some exceptions.

Another perk that comes with holding this account is the small change pools feature in which customers can earn 5 percent interest.

This means that account holders can automatically save on their spending by rounding their debit card purchases to the nearest £1, and depositing their small change into a separate account where they will earn 5 cent interest.

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