Walmart and Visa End Canadian Credit Card Dispute
In June, Walmart announced that shoppers in Canada would no longer be able to use their Visa at the retailer due to a dispute about transaction fees. Late last week, though, Walmart and Visa finally reached an agreement.
This summer, Walmart cited “unacceptably high” card transaction fees when they announced their decision to no longer accept Visa cards in Canada. The company, which pays more than $100 million in credit card transaction fees, said that lower transaction fees were necessary to “keep our prices low and continue saving our customer’s money.”
For its part, Visa told cardholders and other Canadian merchants that it offered Walmart “one of the lowest rates of any merchant in Canada” and “they are using their size and scale to give themselves an unfair advantage.”
Before an agreement was reached, only two markets had been affected by Walmart’s ban. Three Walmart stores in Thunder Bay stopped accepting Visa in July, and in October, 16 stores in Manitoba quit accepting the card.
Since Thursday’s agreement, these stores are once again accepting Visa.
“Visa cardholders can once again use their Visa credit cards as a form of payment in all Walmart stores across Canada,” Visa Canada spokeswoman Carla Hindman said in an email to CBC News. “Visa credit cards will be accepted at all Canadian Walmart stores, including in Manitoba and Thunder Bay.”