Amazon Turns Up the Price: 0.5% Visa Fee Hits Singapore Aisle
From September 15, shoppers on amazon.sg will see a small extra tag on every purchase using a Visa credit card. That’s right— Amazon is shaking things up with a 0.5 % surcharge that’s exclusive to Singapore, the only country—in plain English—where this extra charge lands.
What does it mean for you?
- Every order on amazon.sg gets the hush‑hush 0.5 % bump, unless you’re buying:
- Subscriptions (Amazon Prime, etc.)
- Digital goods and services
- Freshly delivered groceries via Amazon Fresh
- Imports from other Amazon sites (like Amazon.com) stay splash‑free, even if they’re coming to Singapore.
Why Singapore, Why Visa?
According to an Amazon spokesperson, the high cost of processing payments worldwide is the real culprit. Yet in Singapore, Visa’s fees have done a “cost‑catastrophe.” The company’s email to customers on Aug. 10 explained that the surcharge is a direct consequence of Visa’s pricey transactions.
“Want to dodge the fee? Switch to a debit card or a non‑Visa credit card as your default payment method,” the email advised.
Amazon’s Take on the Issue
“The cost of accepting card payments still hinders us from offering the best prices. The good news is that technology will keep slashing these costs over time, letting us reinvest savings into lower prices and better shopping experiences,” the spokesperson said.
“But for now, Visa’s stubbornly high payment charges compel us to add a small surcharge on Visa cards in Singapore. We believe the global trends will trend away from card‑centric payments and toward faster, cheaper, and more inclusive options across our stores worldwide.”
Visa’s Response
Visa counters that merchants should not charge customers extra fees for using cash‑less payments. “Consumers paying with cards should only pay for the service they receive,” the company maintains.
It also adds that the surcharge could hurt both consumers and businesses, but stands firm on the revenue side.
Bottom Line
If you’re a Singaporeaner biting into that Chrome order— a Kindle, a gaming rig, or a banana pack—make sure your payment card isn’t Visa if you want to keep your wallet as lean as possible. Amazon’s new fee prompts a quick recalibration of your checkout page, and the company’s future plans hint at a more payment‑friendly horizon.
