(Adds Visa response)
LONDON, Jan 17 (Reuters) - Amazon.com said on Monday it would not stop accepting UK-issued Visa Inc 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. (Reporting by Michael Holden and Paul Sandle; Editing by Kirsten Donovan)