Wal-Mart Escalates Fight With Visa
July 18 2016 - 11:10AM
Dow Jones News
Wal-Mart Stores Inc. on Monday began blocking the use of credit
cards from Visa Inc. at three of its Canadian stores, marking
another battle in an escalating war between the retail behemoth and
credit card companies.
Wal-Mart said it was unable to agree on terms with Visa and that
the fees it pays when shoppers use the cards are too high. It has
stopped accepting Visa cards at locations in Thunder Bay, Ontario,
and plans to "roll out the change in phases across Canada," where
it has 405 stores, said Alex Roberton, a spokesman for
Wal-Mart.
Mr. Roberton said the company has "not set a timeline yet" for
the roll out to other Canadian stores.
"Visa remains committed to doing everything reasonable to ensure
Canadians can use their cards everywhere they wish to
shop—including at Wal-Mart stores," said a Visa spokeswoman. "We
encourage shoppers to use their cards at the more than 5,200 stores
in Thunder Bay that accept Visa."
In June, Wal-Mart posted signs at the front of its Thunder Bay
stores saying it planned to shut of Visa in July. It is unclear why
Wal-Mart chose Thunder Bay, a city of 110,000 on the banks of Lake
Superior.
The dispute is another salvo in a long running, but recently
heated battle between Wal-Mart and credit card companies, often
over the fees Wal-Mart pays. Earlier this year, Wal-Mart and Kroger
Co. filed separate lawsuits against Visa saying that when shoppers
use new chip-enabled debit cards they should be able to type in a
personal identification number, or PIN. Visa's rules require that
customers also have the choice of signing. Retailers say signing is
more expensive and less secure than a PIN.
In June, a federal appeals court panel threw out a $7.25 billion
antitrust settlement between Visa and MasterCard Inc. and millions
of retailers after determining that some of the merchants covered
by the pact weren't adequately represented, ending a class-action
lawsuit that had stretched over a decade.
In Canada, around 59% of people say Wal-Mart is right to cut off
Visa from stores, according to a recent poll from the Angus Reid
Institute, a Canadian polling agency. However, almost half of
Wal-Mart shoppers surveyed who use Visa said they are less likely
to shop there if the card is banned.
Write to Sarah Nassauer at sarah.nassauer@wsj.com and Robin
Sidel at robin.sidel@wsj.com
(END) Dow Jones Newswires
July 18, 2016 10:55 ET (14:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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