AMAZON has announced a major change which will affect thousands of shoppers across the North East and wider UK.

The online retailer, which has three warehouses in the region, has confirmed a certain payment method will be scrapped from next year.

EXCLUSIVE: Inside as Amazon's warehouse opens at Follingsby Max in Gateshead

In a statement, it said shoppers would no longer be able to use Visa credit cards for their online transactions from January 19.

It comes as it made scathing comments against Visa for its "high fees" and charges for processing such transactions made via its credit cards.

Amazon said that all other non-Visa credit payments, including Visa debit and credit and debit cards made by Mastercard, AMEX and Eurocards will still be accepted.

What you need to do 

Amazon said that those using Visa Credit will need to update their default payment methods via the Amazon.co.uk website in order to continue making purchases.

It said that those who do not update their payment methods will not be able to make purchases beyond the January deadline.

What Amazon has said

A spokesperson told customers: "We know this may be inconvenient, and we’re here to help you through this transition so you can continue enjoying Amazon’s low prices and wide selection."

'A blow to the millions'

James Andrews, senior personal finance editor at money.co.uk, said: “Shops are entirely free to choose whichever payment method they want, but the news that Amazon plans to stop accepting Visa credit cards will come as a blow to the millions of Britons that have them.

“Notably, Barclacard, HSBC and Vanquis all use Visa on their credit cards.

“With American Express also rejected by many UK retailers, that means people looking for rewards on their spending or trying to split the cost of shopping with a 0 percent purchase card on Amazon will be effectively forced to choose a Mastercard.

“Hopefully, Visa and Amazon work out their differences before the ban comes into force on January 19, but in the meantime it would be wise to check your cards now - and think about switching to a Mastercard if you have the option.

“The good news is that some of the best offers on the market at the moment come from Mastercard. With, unsurprisingly, Amazon’s own rewards card powered by Mastercard, as well as table topping offers from Sainsbury’s, Tesco and M&S.”

What Visa has said

A Visa spokeswoman said: “UK shoppers can use their Visa debit and credit cards at Amazon UK today and throughout the holiday season.

“We are very disappointed that Amazon is threatening to restrict consumer choice in the future.

“When consumer choice is limited, nobody wins.

“We have a long-standing relationship with Amazon and we continue to work toward a resolution, so our cardholders can use their preferred Visa credit cards at Amazon UK without Amazon-imposed restrictions come January 2022.”

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