June 11, 2016 9:41 am
Updated: June 15, 2016 3:23 pm

Walmart to stop accepting Visa cards in Canadian stores

WATCH: A surprise announcement from the world's biggest retailer. Walmart Canada says if you shop with a visa credit card, you'll be out of luck at their stores - they'll no longer accept that company's cards. Kristen Robinson has the customer reaction to that news -- and a look at what's behind the retail fight.

A A

Walmart soon won’t accept your Visa card.

A spokesperson for Walmart Canada said that the fees associated with Visa are just too expensive.

READ MORE: Costco set to replace American Express in US stores

“Following an evaluation of credit card transaction fees in Canada and the rest of the world, we have recently concluded the fees applied to credit card purchases are unjustifiably high,” Alex Roberton told Global News in an email.

WATCH: ‘Seems like a ridiculous decision’: Walmart customers react to store not accepting Visa cards


Story continues below

“Unfortunately, Visa and Walmart have been unable to agree on an appropriate fee for Visa transactions.”

The change will start with three stores in Thunder Bay on July 18, and then be rolled out across the rest of the country. So far there is no official time frame for when your local store will stop accepting it.

READ MORE: Walmart is about to start charging you for plastic bags

Roberton says the retail giant, which has over 400 stores across Canada, knows that it’s a blow to Canadians.

“We sincerely regret the impact this will have on our customers that use Visa and remain fully committed to reaching an agreement with Visa,” he said.

WATCH: ‘Unfair credit card merchant fees’ among discussion during Question Period

The move comes during a long legal battle between Walmart and Visa. In 2014, Walmart brought a legal suit against the credit card company for what it called “swipe fees.” In May, the retail giant sued Visa over how the companies verify a card purchase, according to the Wall Street Journal.

Visa believes the rate they offered Walmart was fair and said they are disappointed with the retail giant’s decision.

“Walmart made this business decision despite Visa offering one of the lowest rates available to any merchant in the country,” the company informed Global News in an emailed statement.  “We are disappointed that Walmart chose to put their own financial interests ahead of their own consumers’ choice. “

WATCH: Walmart takes on Visa in 2014 over swipe fees 

© 2016 Global News, a division of Corus Entertainment Inc.

Report an error

Comments

Want to discuss? Please read our Commenting Policy first.