Walmart Plans To Ban The Use Of Visa Card

Walmart Canada will no longer allow the use of visa cards by their customers due to a disagreement between them and the credit card company. The company made a complaint about the fee of the visa card purchases, which it described as exorbitant. As of the 18th of July, customers will not be able to use their visa card in any of the Thunder Bay stores. This will take effect throughout the whole country. The credit card company, Visa has accused Walmart of selfishly putting their customers’ interest aside and putting their own monetary interests ahead.

Although Visa wanted to give Walmart a negotiable decision on low rates that will be accessible to any merchant in Canada, the company still refused to give in and continued with their decision. Retailers are required to pay credit card charge expenses. The fee should range from 1 per cent to 2.5 per cent of each company’s sale price. Walmart has been paying over 100 million dollars of credit card expenses, which is approximately seventy million pounds a year. Depending on the type of card used, the fees charged by Visa and Mastercard are always flexible, whereas, American Express charges a fee that is invariable.

With 370 stores owned by the company, they have experienced a loss of profit which amounted to 7.8 per cent of 3.08 billion dollars from January to March. They also made a comment saying; “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.”

Nevertheless, they also went on to say that they are hoping that they could reach an agreement with visa.