In Latest Stage Of Credit Card Fee Conflict, Walmart Canada Stops Accepting Visa
By Christine Kern, contributing writer
Retailer claims that the credit card provider is charging “unacceptably high” fees to merchants.
While the relationship between retailers and credit card issuers should be symbiotic, a number of merchants have accused Visa of overcharging for swipe fees. Walmart has been pushing Visa since the EMV liability shift went into effect last Fall, which had an unexpected impact on U.S. retailers in the form of higher debit-transaction fees, as Innovative Retail Technologies reported. Fees have risen approximately 20 percent since October 1, according to Bloomberg, leading Walmart to file a lawsuit against Visa Inc. over how debit transactions are being verified. The suit relates specifically to Visa debit cards, not chip-and-PIN credit cards.
Now, the retail giant is following through on earlier threats, and after the two sides were unable to reach a new swipe fee agreement, Walmart has chosen to stop accepting Visa credit cards in its Canadian locations, according to Business insider. The new policy went into effect on July 18th. The move does not affect US Walmart stores.
In a statement disclosed to CBC News, Walmart Canada’s senior director of corporate affairs, Alex Roberton, announced that: “We are moving ahead as planned regarding our decision to stop accepting Visa at our three Thunder Bay stores on Monday, July 18”. Wal-Mart (like other retailers) says transaction fees translate to higher prices for consumers, although shoppers aren’t usually charged such fees outright; Wal-Mart Canada alone says it pays more than $100 million annually in card transaction costs.
Nano News says that Visa has taken out advertisements in several Canadian newspapers in retaliation, accusing the retailer of using customers as “pawns” in the disagreement. According to Walmart, the Visa ban will be expanded to all 400 Canadian locations, though no date for that expansion has been released. Walmart says that the Visa transaction fees in Canada are four times higher than those in other countries.
A Visa spokeswoman told The Guardian that it offer “one of the lowest rates available to any merchant in the country,” and that Walmart Canada’s decision to stop accepting Visa payments will have a negative impact on Walmart customers.