Walmart Canada will no longer accept Visa cards starting next month and the company told the media that the fees associated with Visa are “unjustifiably high.” I wonder how many shopping carts full of product will be left at the checkout once customers realize this.
Visa said they are disappointed that Walmart chose to put their own financial interests ahead of their own consumers’ choice. Since when did Visa put my financial interest ahead of theirs? So– no more MasterCard at Costco, No Frills,and now Walmart. Actually Walmart sued Visa over swipe fees in New York in 2014, alleging that “Visa’s monopoly power has enabled it to dictate price and inhibit competition.” That is definitely the most ironic thing I have heard in a long time. Walmart complaining about a “monopoly power”, “dictating price”, and “inhibiting competition”. Look at these two corporate giants fighting each other over making even more profits! Epic!
Walmart is fighting because their profit margin just got a little smaller. Not to the point of losing money, just to the point they make a few less cents on every sale. Visa on the other hand is the one trying to get more fee’s from Walmart, so in turn they can make more money. Walmart wants more money, Visa wants more money. Is it time to bring on the lawsuits and go to corporate war? Who is caught up by this? The consumer of course!
What a lot of people don’t realize is that the Banks in Canada have been quietly adding a Visa insignia to their debit cards without even asking their customers or explaining to them that although this doesn’t mean they have a Visa Credit Card, their Bank and Visa are now charging merchants a 5% fee on all their purchases they make with their debit card – with their own money ! Pretty sweet deal for the Banks and Visa, higher prices for their customers. So come July – if your Debit Card now has a Visa logo on it, don’t expect to use it at Walmart
You do realize that Walmart has its own MasterCard, right? How many times have you heard the cashier ask, “Will that be on your Walmart MasterCard”? That is the card they want you to use because with it branded they get a cut of the interest MasterCard charges you. If on the other hand they can convert enough Visa customers to their Walmart MasterCard, then Camp Walmart makes that much more at the end of the day.
Whatever side you are on, in reality Walmart would like you to get their credit card.
Have we reached the race to the bottom yet?
Remember—- Please be kind to Walmart cashiers….they didn’t ask for this change.