Walmart has announced that it will no longer accept Visa card payment across all its stores in Canada over high transaction fees.
At the outset, the retail giant will cease to accept Visa cards, including credit cards at its stores located in Thunder Bay from 18 July. The change will then be implemented in phases across the country.
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Walmart said that the decision has been taken following an assessment of credit card transaction fees in Canada and the rest of the world, which found the fees applied to Visa credit card purchases to be unacceptably high.
In a statement, the company said: "Walmart’s purpose is to save customers money so they can live better. We are committed first and foremost to this purpose, which requires us to keep costs as low as possible.
"Unfortunately, Visa and Walmart have been unable to agree on an acceptable fee for Visa transactions."
According to the US-based retailer, Walmart Canada pays more than $100m in fees to accept credit cards per annum and decreasing this cost is necessary to be able to keep prices low and continue saving its customers money. Customers will continue to be able to use other forms of payment including cash, Interac debit, MasterCard, Discover and American Express.
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By GlobalData
