Wal­mart Canada to stop ac­cept­ing Visa

Pakistan Observer - - ECONOMY WATCH -

ON­TARIO—Re­tailer Wal­mart Canada will no longer ac­cept Visa cards af­ter it failed to agree a deal with the credit card firm.

Fees ap­plied to Visa card pur­chases “re­main un­ac­cept­ably high,” the com­pany said in a state­ment.

Cus­tomers will no longer be able to use the card in its Thun­der Bay store from 18 July and the move will be phased in across the coun­try.

Visa ac­cused Wal­mart of putting its own fi­nan­cial in­ter­ests ahead of its cus­tomers.

“Wal­mart made this busi­ness de­ci­sion de­spite Visa of­fer­ing one of the low­est rates avail­able to any mer­chant in the coun­try,” a spokesper­son said.

The su­per­mar­ket chain said it paid more than $100m (£70m) in credit card fees each year - but did not break that down for the spe­cific com­pa­nies.

All credit cards charge fees to re­tail­ers gen­er­ally be­tween 1% and 2.5% of the sale cost. Visa and Mastercard usu­ally charge vari­able fees ac­cord­ing to the type of card used, while Amer­i­can Ex­press gen­er­ally charges a flat fee.

“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,” Wal­mart Canada said.

How­ever the com­pany added that it re­mained “op­ti­mistic that we will reach an agree­ment with Visa”.

Wal­mart has some 370 stores in Canada. Last month the com­pany as a whole re­ported a 7.8% fall in profit for the first three months of the year to $3.08bn.—Agen­cies

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