Walmart Plans to Cut Visa Payments
If you’re a Visa cardholder, you may want to consider switching your credit card provider… especially if you’re a regular shopper at Walmart.
This past weekend, Walmart Canada announced that they intend to join the list of retailers, including No Frills and Costco, that don’t accept Visa cards. The reason why? They think they’re losing too much money as the fees are, “unacceptably high”.
According to a statement posted to the Walmart website, the company claims to pay, “over $100 million in fees to accept credit cards each and every year.” To put their loss into perspective, the company reported a worldwide revenue of $115.9 billion US in its first quarter of 2016-17 fiscal year.
The change is expected to happen gradually across 400 Canadian locations, with the first locations to phase out Visa payments in Thunder Bay on July 18th. Walmart Canada said the company is “optimistic” about reaching an agreement with Visa for lower fees and until then, will continue to accept cash, MasterCard, Discover, American Express, and Interac debit.
If Walmart plays their cards right, the change may just push shoppers to sign up for the Walmart Rewards MasterCard – a major win for them.
Are you upset that Walmart will no longer accept Visa payments?
Featured image via Flickr/Random Retail