Walmart Versus Visa is truly a clash of Titans, and a dispute over merchant fees just got nastier.
The discount retailer, which claims to pay $100 million a year in credit card fees, has decided to stop accepting Visa cards in all 16 of its stores in Manitoba.
The battle has now caught the attention of The Retail Council of Canada, who is now petitioning Ottawa to intervene and lower merchant fees. The federal Finance Department says it is assessing merchant fees.
Walmart began it’s credit altercation with Visa, in Mid-July, when it refused to accept credit cards at its three stores in Thunder Bay. So far, a spokesperson for Walmart says the impact at those stores has been minimal with customers opting for cash or debit instead.
The mega retailer announced in June it would begin a phase out of Visa across all of it’s 406 Canadian stores, a move Visa says is “extremely disappointing.”
Visa says they offered one of the lowest fees for any merchant in Canada, during the latest negotiations in 2016. A move the credit card giant claims is unfair to the other businesses they represent who would have to pay the higher standard rate.
Walmart’s phasing out of Visa is not the last word, both parties are still meeting to find working solution.
Currently, GTA stores are still accepting Visa.