Walmart Canada Will Stop Accepting 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,” the Ontario based Wal-Mart Canada stated in a release. While Walmart is under constant controversy over employee wages, Walmart and Visa simply could not work out a deal, “Unfortunately, Visa and Wal-Mart have been unable to agree on an acceptable fee for Visa transactions,” Wal-Mart Canada continued in their statement.
The changes will begin implementation on July 18th and will only affect Canadian stores and will spread across the rest of Canada in phases. A Visa spokesperson stated the company was quite disappointed in Wal-Mart’s decision and that it will have a negative impact on customers choosing to shop at the store.
Wal-Mart has 405 stores in Canada and Visa is the largest payment processor in the country as well with nearly 51 million cards in circulation – meaning this is a decision that could inconvenience a number of customers and cost both parties a substantial amount of money. The incident follows recent issues that Wal-Mart and Visa have had within the United States.
In that incident Wal-Mart took Visa to court in New York after Visa prohibited the company from forcing customers to only provide a PIN for their purchases. Visa insists customers like having the flexibility of using a PIN or giving their signature. It is unclear if the incidents are in anyway linked.