Wal-mart Canada Showdown With Visa

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DJ TJ

DJ Extraordinaire
Oct 20, 2013
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While not directly DJ related, it should be interesting to see who blinks first:

Is Walmart playing chicken with Visa in rejecting cards?

I would really like to see all the rewards credit cards go away. Visa has passed the extra costs on to the merchants in transaction fees under the guise of being a supposed benefit to the merchant in the way of increased impulse sales by the consumer if they're accepted. What a load of crap!
 
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Apple Pay and technology like the Bitcoin blockchain have the potential to make traditional CC merchant processors obsolete anyway.

The purpose of CC processing companies is to act like a clearing house for Visa/MC etc and to verify transactions, once a unique secure ID code that verifies and securely records the transaction is adopted there will be no more need for a 3rd party processor such as Chase, Moneris etc...

Somebody will still be getting a "transaction fee" I'm sure, but hopefully it will result in lower overall fees for the merchant.
 
This is the same game Walmart plays with suppliers except this time they are playing with someone much bigger than usual.

I don't think Walmart will back down. They have their own branded Mastercard it's to their advantage to have people use that many Visa holders will apply now if they are Walmart shoppers. Costco has been doing it as long as I can remember it hasn't hurt them a bit
 
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No-Frills (Loblaws) hasnt accepted Visa for years and seem to be doing just fine, and they like Walmart and Costco have their own branded Mastercard which probably gives them preferential merchant rates.
 
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Costco only took American Express for years .. now only their own cobranded Visa .. hasn't hurt them either.
 
It is interesting that Wal Mart Canada division pays more % wise in fees compared to USA to VISA. ...Not sure why the difference in fees. Who knows. My Bank dropped Visa, and went to MasterCard for their logo for debit cards due to getting a better deal from MC. However, the bank's Credit Card is still a Visa logo.

It's all about maximizing profits for both companies in the end. ...The amount Visa is offering is probably like 1.5%. Wal Mart wants it dropped to like 1.1% or something so they can save hundreds of thousands in transaction fees in Canada...all that money goes directly into executive pockets. ...Visa knows a huge amount of transactions come through via Wal Mart, and they don't want to lose hundreds of thousands a year.

Either way, both companies are multi billion dollar companies, and the move won't hurt wal mart in the slightest. MOST people who have Visa cards also have a Master Card or Amex, or (very rarely) a discover. They can use another card, or just pay with cash. Frequent wal mart shoppers might just switch to a Wal Mart Blue account.

In the end, I think Visa will fold and just accept a lower rate.
 
steve149 said:
Costco only took American Express for years .. now only their own cobranded Visa .. hasn't hurt them either.
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In Canada they used to take AE now it's their Mastercard
 
If you have a Visa branded card chances are you have a MasterCard or 3 in your wallet too and maybe an AMEX. I cannot see anyone *needing* to purchase with Visa credit at Wal-Mart due to lack of funds on hand unless it's something like a set of tires.

Bottom line is most credit cards suck for the consumer. If it makes more people deal in cash or use a debit card instead of credit that's just fine.
 
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Not a big fan of CiTi .. They hold my mortgage, but I haven't taken out any CCs with them .. directly. Indirectly, they've bought many of my cobranded cards (hotel, Lowes, etc.
 
I rarely return to a place that's not convenient about how I pay them.
My lawn guy and exterminator have been replaced because they don't take credit cards.

If you only take 1 credit card, you aren't any help to me.

I don't want to bother to write out a check.

Took some friends to a good little restaurant for lunch yesterday. home style cooking. When I went to pay, they didn't accept credit cards. I had to walk down the street and get cash. The lady said, "Sorry, but I do put signs up all over the place saying we don't take credit cards. I asked her, "Why do you have to put signs up all over?" She said, "Because no one reads them and everyone wants to pay with a credit card.". I replied, "So if the signs work, customers go somewhere else. If they don't work, people get angry."

Simply not a place I'll go back to.
 
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Scott Hanna said:
I rarely return to a place that's not convenient about how I pay them.
My lawn guy and exterminator have been replaced because they don't take credit cards.

If you only take 1 credit card, you aren't any help to me.

I don't want to bother to write out a check.

Took some friends to a good little restaurant for lunch yesterday. home style cooking. When I went to pay, they didn't accept credit cards. I had to walk down the street and get cash. The lady said, "Sorry, but I do put signs up all over the place saying we don't take credit cards. I asked her, "Why do you have to put signs up all over?" She said, "Because no one reads them and everyone wants to pay with a credit card.". I replied, "So if the signs work, customers go somewhere else. If they don't work, people get angry."

Simply not a place I'll go back to.
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I remember when Mcdonalds only accepted CASH! They didn't start accepting credit cards until maybe 2008?

There is a Ice Cream Parlor open April through October here in town called Icy Delights. They will only accept Cash payment still. It's a place you park, and walk up to the window and order from.

The Talent Agents who book me...One of them requires a 3% CC processing fee if client wants to pay with a CC. ...I am considering adding that to my agreement, but then again I also feel that you shouldn't charge people more just to use a Credit Card. I haven't yet, and I've offered PayPal for about 5 years now.
 
CT is one of the states that ban adding surcharges for CC use. I think you are allowed to have a minimum amount (say $10), but can't add the 3% on, though you are allowed to discount for cash use (gas stations do it all the time). On a $1000 bill, you're typically looking at less than $30 .. and taking CCs makes it easy to get paid quick.
 
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steve149 said:
CT is one of the states that ban adding surcharges for CC use. I think you are allowed to have a minimum amount (say $10), but can't add the 3% on, though you are allowed to discount for cash use (gas stations do it all the time). On a $1000 bill, you're typically looking at less than $30 .. and taking CCs makes it easy to get paid quick.
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Same in Nova Scotia but they can add a surcharge to use a debit machine in store I think the maximum is 50 cents or something like that. Very few do anymore

There are a few here that don't take CC or Debit too it's cash only. I'm cool with that but thereis one place that takes debit or CC that when it gets busy they say it's not working but they have an ATM onsite . The ATM costs a $3 fee plus whatever your own bank charges....And that's when I go elsewhere
 
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I'm like Scott .. once they make it difficult to do business, I'll go elsewhere. I understand if you're a commodity dealer and the price of the commodity is known (gold, silver, etc.) and the 3% loss would actually BE the profit you'd make .. but most other purchases are not in that category and you tend to get MORE business with CCs or Debit Cards as it's just plain easier to buy more.
 
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