Walmart Canada to stop accepting Visa cards

[Drache]

Walmart says it intends to join the list of retailers in Canada that don't accept Visa cards, citing high fees for transactions.

All credit cards charge fees to retailers, which generally are between one per cent and 2.5 per cent of the cost what's being sold. The fees vary depending 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.

Walmart Canada quietly made the announcement on Saturday that it would gradually stop accepting Visa cards at all of its locations, citing "unacceptably high" fees.

But a statement from Visa said the credit card company offers "one of the lowest rates available to any merchant in the country."

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.

But 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.

Representatives from Walmart Canada declined to say how much money customers charge to their credit cards at their stores.

According to the statement posted on 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, according to the company's global website.

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 its own store credit card, which is a MasterCard.

Walmart says it will continue to accept MasterCard, American Express and Discover cards.

A representative from Visa Canada said in a written statement that the company "regrets" Walmart's decision, and that it will have a "negative impact" on Walmart's shoppers.

Walmart Canada said the company is holding out hope that it will be able to "reach an agreement" with Visa for lower fees.

The two companies have sparred about similar issues south of the border, too.

Last month, Walmart Stores Inc. filed a lawsuit against Visa Inc. in a New York court, saying the payment operator was resisting the use of personal identification numbers (PINs) by U.S. customers making purchases on Visa debit cards.

Walmart and other U.S. retailers have pushed to allow customers to use PINs instead of old-school signatures in a bid to prevent counterfeit card fraud. However, banks and payment network operators recently adopted chip technology and prefer chip cards verified by signatures, seeing no need to invest further in more expensive PIN technology.

According to the lawsuit, Walmart says it pays Visa more for signature-based transactions rather than those made using PINs

And in March, Walmart had also sued Visa Inc. in an Arkansas court, where the company is headquartered, accusing Visa of excessively high swipe fees. The lawsuit came several months after the retail giant opted out of a $5.7 billion class-action settlement between merchants and Visa and MasterCard Inc, approved by a federal judge in Brooklyn, N.Y.

Walmart, Amazon.com Inc, and Target Corp were among those opting out of the monetary components of the settlement, in order to have the freedom to seek damages on their own.

"The anti-competitive conduct of Visa and the banks forced Walmart to raise retail prices paid by its customers and/or reduce retail services provided to its customers as a means of offsetting some of the artificially inflated interchange fees," Walmart said in court documents.

"As a result, Walmart's retail sales were below what they would have been otherwise."

http://www.cbc.ca/news/business/walmart-canada-visa-1.3630956

[Mytur Binsdirti]

Well that does it, no longer will I travel 6 hours to get to the nearest Canadian Walmart!     

[BrianShaughnessy]

Typical walmart strong-arm tactics.   Somebody else might say business is business. 

Awhile back their Sam's Club stores only took Discover   

[J.Bond]

A year ago, I needed to transfer some money to the states, for a ebay purchase. I suggested Western union, seller wanted it sent thru wally world. Went to the bank , picked up 8 ,100.00 Americans, shot over to wally world only to find out, IT IS WESTERN UNION (could have done that from my bank), and they do not accept American 100 bills. Twenty's all day long  .  Happened to stop by this week for some garden supplies, oh, and some of their ignorance..... And as I was standing at the check out, Big Sign on the wall, We NO Longer Accept American Money!!!!!


I don't know, are they sending us a message.

[Ponch ®]

Cheap ass canadians...

[RallyeMike]

Classic Wallmart. Profits above all else.

[Ponch ®]

Classic Wallmart. Profits above all else.

that's what businesses are supposed to do. Idn't it?

[Dodgecharger74]

I would not shop at Walmart If there was one across the street.   There is one across the street been there for 5 years have not seen the inside Yet!  No plan to see it!

[Mike DC]

   
Huge corporations have a tendency to act like huge corporations.

[XH29N0G]

  corporations deserve rights, just like people.     They are doing business and taking their business elsewhere - oh, and also positioning by planting little complaints that is meant to get other people upset and reacting. 

[Mike DC]

        

corporations deserve rights, just like people.

They do have human rights.  But they don't have any of the human responsibilities that go with rights.


Imagine how much different Walmart might act if all employees & stockholders were subject to prison terms any time the corporation got caught committing a crime.  
 

Corporations are literally sociopaths with no conscience, tons of money/power, and a lifetime get-out-of-jail-free card.  I don't know how anyone can possibly expect them to behave morally.   

[Drache]

I just can't stop shopping at Walmart.

Bought a whole mess of groceries from Canada wide grocery store, $300.

Bought the exact same groceries at Walmart. Saved $100.

[68X426]

     Corporations are literally sociopaths with no conscience . . . . . how anyone can possibly expect them to behave morally.   

Not accepting Visa is an act of immorality?  Huh? 

[Mike DC]

      
Nah, but plenty of other stuff done by big corps is immoral.   I'm generalizing. 

[Brock Lee]

Walmart hasn't seen a penny of my money in 10 years. I have absolutely no problem paying more elsewhere...

[Mike DC]

     
I still go to WM without feeling guilty if it's the middle of the night.  Staying open 24/7 makes a big difference to me.  I'll start going somewhere else in those times as soon as there is another option.

WM is the easiest to hate, but other big-box chain stores are guilty of big corporate sins too.   

[XH29N0G]

It is a place for inexpensive shopping and that has its purpose.  I don't like how they treat workers and have shopped there only one time I remember in the past 10 years.  I live in a fairly depressed area and like to stick with the local businesses if at al possible rather than taking the long haul out on the freeway to Walmart. 

[Mytur Binsdirti]

It is a place for inexpensive shopping and that has its purpose.  I don't like how they treat workers and have shopped there only one time I remember in the past 10 years.  

I'll visit Wally World maybe once a year at best to get some engine oil, but my wife gets some house staples there every once in a while. Personally, I have never asked any employee where I shop how they are treated because it's just none of my business. I would assume that if they are reasonably happy, they stay employed there. If they aren't happy they go, or should go.

But here's what bothers me about Wally World; with all the languages spoken and attire people are wearing, you just feel like you are visiting a 3rd world country as soon as you walk in.

[Troy]

So let's get this straight... they will still accept American Express even though they have the highest fees of any credit card and many, many other businesses refuse to accept it for this reason. I'd imagine that a LARGE part of their business is through Visa which is why they're trying to get a better rate. I would imagine that if Visa doesn't cave that Walmart really won't stop accepting it.

From a different perspective, I don't think Walmart's profit margin is very large (probably 3% on groceries and a bit higher on everything else) so if they're forking out 2% in credit card fees that's a big deal. They make money by selling at ultra high volume - not by inflating prices.

It's interesting that the rewards cards charge a higher fee to the retailer. Just shows you that nothing is free - that money comes from somewhere...

Troy

[Mike DC]

nally, I have never asked any employee where I shop how they are treated because it's just none of my business. I would assume that if they are reasonably happy, they stay employed there. If they aren't happy they go, or should go.

Wrong century.  There aren't enough jobs in many areas to give people much choice now.  

I suppose the next logical argument is that they could leave town.  But that shifts the problems around more than it fixes things.



The current system works for employers like WM.  They pay workers about half as much as it would take for them to stay alive & out of jail.  Taxpayers cover the other half of their salaries with social programs.  It saves WM a lot.  

[Mytur Binsdirti]

Wrong century.  There aren't enough jobs in many areas to give people much choice now.  

And is WalMart to blame for that?     

[68X426]

 There aren't enough jobs in many areas to give people much choice now.  

Cough, cough . . . . Venezuela.

[RallyeMike]

that's what businesses are supposed to do. Idn't it?

There are actually businesses that are socially responsible that still turn a profit. The bigger and more profitable a business is, they more opportunity they have to achieve in both areas. Walmart chooses to measure their success heavily on profits - so for example, we taxpayers end up paying for all the emergency room visits Walmart families rack up because Walmart provides such limited heath care to their workers.

Now, I wouldn't call not taking Visa as socially irresponsible. It's just another look into how Walmart so heavily values profits above all else (e.g. customer convenience in this case).

As others have pointed out, I have never spent a dollar there and never will.

[Mike DC]

And is WalMart to blame for that?

I don't really "blame" WM for anything, at least not in the strict sense.  A huge corporation behaves with no sense of morality either way.  It's like blaming a shark for killing people.  


Our society is collectively at fault for allowing the shark to feed off our people & grow so big & powerful in the process.  

And WM is just one of the bigger sharks.  We've allowed lots of them to munch on us lately. 

[68X426]

Some sharks take the Visa card.   

And a Canadian bank Visa card no less.

[Mytur Binsdirti]

Our society is collectively at fault for allowing the shark to feed off our people & grow so big & powerful in the process.  

And WM is just one of the bigger sharks.  We've allowed lots of them to munch on us lately.  

That is true, and it's been happening for the past 100 years. Local general stores gave way to the Five & Dime stores, which gave way to FW Woolworth which gave way to larger regional chain stores which gave way to Walmart. You can look at every chain store and restaurant today and work backwards to see what businesses were eaten up along the way. The same goes for the big three auto makers and so on................  

[68X426]

which gave way to Walmart.

Which is giving way to Amazon.

( 2015 Walmart sales down -2%, profits down -8%, closing 250 stores. The shark isn't doing too well. )

One day Amazon will give way to some retailer not even in existence today.

[Mytur Binsdirti]

which gave way to Walmart.

Which is giving way to Amazon.

( 2015 Walmart sales down -2%, profits down -8%, closing 250 stores. The shark isn't doing too well. )

One day Amazon will give way to some retailer not even in existence today.

Exactly.

[Ponch ®]

that's what businesses are supposed to do. Idn't it?

There are actually businesses that are socially responsible that still turn a profit. The bigger and more profitable a business is, they more opportunity they have to achieve in both areas. Walmart chooses to measure their success heavily on profits - so for example, we taxpayers end up paying for all the emergency room visits Walmart families rack up because Walmart provides such limited heath care to their workers.

Now, I wouldn't call not taking Visa as socially irresponsible. It's just another look into how Walmart so heavily values profits above all else (e.g. customer convenience in this case).

As others have pointed out, I have never spent a dollar there and never will.

they can be socially responsible if they choose to be. But they don't have an obligation, moral or otherwise, to be.

[RallyeMike]

they can be socially responsible if they choose to be. But they don't have an obligation, moral or otherwise, to be.

That's absolutely true. The same can be said or people who choose to shop there or not.

[Ponch ®]

they can be socially responsible if they choose to be. But they don't have an obligation, moral or otherwise, to be.

That's absolutely true. The same can be said or people who choose to shop there or not.

which really ties nicely to my point: the free market will dictate what they do, as it should be.

[68X426]

the free market will dictate what they do, as it should be.

Now there is a truly radical idea. 

[Mike DC]

            
The free market will keep huge corps in line?  


Umm, no.  

Bringing the example back to the individual scale - psychopathic criminals will not be kept in line just by social pressure from the rest of us.  We need police & courts & prisons.   

[Mytur Binsdirti]

           


Bringing the example back to the individual scale - psychopathic criminals will not be kept in line just by social pressure from the rest of us.  We need police & courts & prisons.   

What's this got to do with the price of corn flakes at WalMart?   

[RallyeMike]

which really ties nicely to my point: the free market will dictate what they do, as it should be.

There's no such thing as a "free market" on any large scale. That a business can/will do whatever it wants to in the "free" market and not suffer some consequences, or that it is "right" because they are free to do it is not reality. Of course it is all part of Wallmart's plan - they don't mid losing conscientious shoppers as long as the profit is maximized, and obviously its been working out pretty good for them in the terms they measure success by.