Hey yâall, this is Jenny Surane. I write about banking and payments for Bloomberg News in New York. This week, Amazon escalated its feud wit
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Hey yâall, this is Jenny Surane. I write about banking and payments for Bloomberg News in New York. This week, Amazon escalated its feud with Visa. But first: Todayâs top tech news: - Xbox is evaluating its [relationship with Activision Blizzard]( after this weekâs revelations about its CEO
- Apple pushed back its [return-to-office deadline]( to Feb. 1
- A group of crypto investors failed to buy a first printing of the [U.S. Constitution]( Fees face-off The battle between the worldâs largest e-commerce company and the worldâs largest payments network started quietly. It began in Singapore, where in September Amazon.com Inc. started adding a small surcharge to any purchases made with a Visa Inc. credit card, citing âVisaâs high cost of payments.â The company soon began passing along the extra fee to customers in Australia as well. This week, Amazon upped the ante: The e-commerce giant announced it will ban Visaâs cards in the U.K. [starting next year](. âWe believe the cost of accepting credit-card payments should be going down over time to allow merchants to reinvest savings into low prices and shopping enhancements for customers,â Amazon said in an emailed statement. âYet despite technical advancements, some cardsâ cost of payments continue to stay high or even rise.â Visa, for its part, said it is âvery disappointed that Amazon is threatening to restrict consumer choice in the future. When consumer choice is limited, nobody wins.â Now, there are signs that the feud is making its way to the U.S., too. Amazon in recent weeks has announced deals with [PayPal Holdings Inc.âs Venmo]( and [Affirm Inc.]( that will give U.S. shoppers another way to avoid Visa. The retailer is [also considering]( shifting its popular co-brand credit card to Mastercard Inc. amid the simmering tensions. In some ways, the fight is nothing new. Retailers have long balked at the fees theyâre forced to pay each time a consumer swipes a card at checkout. While it can amount to just pennies per purchase, that adds up: Merchants in the U.S. spent $110 billion in card-processing fees last year alone. Most consumers have little idea that these costs exist or how much they amount to, even though retailers say theyâre responsible for higher prices on many everyday goods. Theyâre also a big part of the credit-card company business model. In the U.S., itâs often these swipe fees that help bankroll popular premium credit-card rewards and fraud protections. With its latest move, Amazon is taking a page from the likes of its rivals Walmart Inc. and Kroger Co., both of which have temporarily instituted similar bans on Visa cards. For now, most analysts believe Visa will be able to reach a truce with Amazon, as it has done with Walmart and Kroger in the past. âWe expect Visa and Amazon to reach a U.K. deal as customer choice and ubiquity are paramount,â Dominick Gabriele, an analyst at Oppenheimer, said in a note to clients. Still, he added, âwe remain cautious.â â[Jennifer Surane](mailto:jsurane4@bloomberg.net)
If you read one thing The Cupertino car feels closer. Apple is said to be [pushing to accelerate the development of its electric car]( and is refocusing the project around full self-driving capabilities, aiming to solve a technical challenge that has bedeviled the auto industry. Hereâs what you need to know A group of U.S. state attorneys general are [investigating Instagram]( over its efforts to engage young people. Scarred by supply constraints, General Motors will co-develop [its own chips](. Bitdeer, a Singapore-based Bitcoin mining company controlled by Chinese billionaire Jihan Wu, plans to [go public via a SPAC deal]( estimated to be worth $4 billion. Big tech pushed the S&P 500 to its 66th [all-time high]( this year. Follow Us More from Bloomberg Dig gadgets or video games? [Sign up for Power On]( to get Apple scoops, consumer tech news and more in your inbox on Sundays. [Sign up for Game On]( to go deep inside the video game business, delivered on Fridays. Why not try both? Like Fully Charged? | [Get unlimited access to Bloomberg.com](, where you'll find trusted, data-based journalism in 120 countries around the world and expert analysis from exclusive daily newsletters. You received this message because you are subscribed to Bloomberg's Fully Charged newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox.
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