Walmart says it plans to fall in line with the list of retailers in Canada that don’t accept Visa cards because the fees are just too high for transactions. Walmart Canada made the announcement on Saturday
All credit cards charge fees to retailers, which generally are between one per cent and 2.5 per cent of the cost of what’s being sold. The fees depend on the type of card the customer is using — cash-back and premium cards generally have higher fees — and the type of retailer they’re shopping at.
Visa made a statement on the other habnd saying that they offered Walmart “one of the lowest rates available to any merchant in the country.”
Analysts says both parties may suffer as a result, citing that about six out of ten customers will come into a Walmart store and be disappointed that they can’t use their credit card.
Comparisons of Credit Cards
Documents on Visa Canada’s website show that for standard retail purchases made in-store, fees range from 1.42 to 2.08 per cent. Meanwhile, MasterCard’s website shows that for standard purchases at independent retailers, its fees range from 1.44 to 2 per cent.
MasterCard also offers lower rates to large retailers — as low as 1.26 per cent for those that have a minimum “net purchase volume” of $3 billion.
When will the new Visa Policy Begin?
According to Walmart’s website, the first stores to stop accepting Visa will be in Thunder Bay, Ont., starting July 18. After that, it will be rolled out Canada-wide in phases.
Walmart has more than 400 locations in Canada, and more than 11,500 worldwide.
Walmart isn’t the first store to stop accepting Visa — No Frills doesn’t accept Visa or American Express, saying that they are too expensive for their business. And Costco only accepts MasterCard.
Walmart says it will continue to accept MasterCard, American Express and Discover cards.
But there still may be hope. Walmart Canada said it’s holding out hope that it can “reach an agreement” with Visa for lower fees.
Will this affect your shopping behaviour at Walmart if Visa gets axed?
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