Walmart Canada Will No Longer Accept Visa Cards Due to High Fees
Shoppers visiting Walmarts in Canada will no longer be able to use their Visa cards to pay, as the retailer could not reach an agreement with the credit card company.
Walmart cited Visa’s fees as the reason the two entities could not reach a deal. In their statement, the company called these fees “unacceptably high.”
Last year, Walmart said it paid more than $100 million in credit card fees, but it did not specify how much of this total went to Visa.
“To ensure we are taking care of our customers’ best interests and delivering on our promise of saving customers money, we constantly work to reduce our operating costs, including credit card fees,” Walmart Canada said.
Visa has over 50 million cards in circulation in Canada, resulting in $232 billion in transactions per year. This action could hamper some shoppers from making purchases at Walmart.
Visa has accused Walmart of putting its own interests ahead of its customers.
“Walmart made this business decision despite Visa offering one of the lowest rates available to any merchant in the country,” a spokesperson told BBC Canada.
However, the retailer, which has 370 stores in Canada, said it remained “optimistic that we will reach an agreement with Visa.”
The Thunder Bay Walmart will stop accepting Visas on July 18, and the credit card will be phased out of stores across the country in the weeks that follow.