Amazon said on Monday it would not stop accepting UK-issued Visa credit cards on its British website later this month as it had proposed, adding that it was working with Visa to resolve a dispute over payment fees.
"The expected change regarding the use of Visa credit cards on Amazon.co.uk will no longer take place on January 19," the company said in an email to customers.
"We are working closely with Visa on a potential solution that will enable customers to continue using their Visa credit cards on Amazon.co.uk."
Amazon said in November it would ban Visa's card because of the high transaction fees charged by the payment processor.
It said customers could still use Visa's debit cards, along with Mastercard and Amex credit cards and Eurocard.
A Visa spokesperson said on Monday: "Amazon customers can continue to use Visa cards on Amazon.co.uk after January 19 while we work closely together to reach an agreement."
Visa had said in November it was "very disappointed that Amazon was threatening to restrict consumer choice".
An EU-enforced cap on fees charged by card issuers is no longer in place in the UK following Brexit.
Meanwhile, correspondence published by the Commons Treasury Committee last week has shed light on the increasing cost of card payment services for businesses in the UK.
Responding to a letter from the Committee chair Mel Stride MP, the Payment Systems Regulator said they have not seen evidence that the costs of operating payment services have increased for card issuers to warrant the recent increases in fees.
