American retailer Kroger has decided to stop accepting Visa credit cards payment at its Smith’s Food & Drug Stores division starting 3 April due to excessive transaction fees.
The decision will affect 142 supermarket and also 108 fuel centre locations operated by Smith’s across seven US states.
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Kroger Visa ban
Commenting on the decision, Kroger CFO Mike Schlotman said: “Visa has been misusing its position and charging retailers excessive fees for a long time. They conceal from customers what Visa and its banks charge retailers to accept Visa credit cards.
“At Smith’s, Visa’s credit card fees are higher than any other credit card brand that we accept. Visa’s excessive fees and unfairness cannot continue to go unchecked. That’s why, starting April 3, Smith’s will accept all forms of payment except Visa credit cards.”
The Kroger Visa ban at Smith’s will be the second Kroger subsidiary to decline the credit cards. Furthermore, last August, its subsidiary Foods Co. stopped accepting Visa as a payment method.
Smith’s president Kenny Kimball said: “Grocery is a competitive business. Our ability to keep prices low for our customers depends on controlling costs.
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By GlobalData“To help our customers through this transition, we have great offers inside our Smith’s stores today, including double rewards points towards fuel purchases and other promotions to save on groceries.”
Smith’s will continue to accept card from other payment firms including Mastercard, American Express and Discover.
