Walmart Canada to stop taking Visa at the checkout
Walmart Canada has decided the fees it pays to accept Visa are too high and will cease accepting the cards at its 370 stores across the country beginning with a location in Thunder Bay on July 18.
According to the retailer, the company pays over $100 million (Canadian) in fees to accept credit cards each year. These fees are, in turn, passed on to consumers in the form of higher prices. Walmart Canada will continue to accept American Express, Discover and MasterCard after it stops accepting Visa.
According to reports, Visa Canada claims to charge retailer fees that range from 1.42 to 2.08 percent. The company, which is used by more Canadian consumers than any other card, claims Walmart is charged among the lowest rates.
In the U.S., Walmart was among a group of retailers that opted out of a class-action settlement with MasterCard and Visa over interchange fees. In doing so, it maintains the right to seek its own remedies through the court system. The legal settlement that some have signed onto saw MasterCard and Visa agree to hold interchange fees at 1.5 percent for five years.
- Walmart Canada Statement Regarding Visa Credit Card Purchases – Walmart Canada
- Walmart Canada to stop accepting Visa cards due to ‘unacceptably high’ fees – The Canadian Press/CBC News
- Walmart Canada Will Stop Accepting Visa Cards, Citing Fees – Bloomberg
- Walmart Canada to stop accepting Visa, says fees too high – Reuters
DISCUSSION QUESTIONS: Who will be hurt most by Walmart Canada’s decision to stop taking Visa in its stores? How do you see the ongoing fight between retailers and credit card companies over fees panning out?