As a small business owner I support Walmart in this showdown. Merchant fees are not just the rate the credit card company charges the business to allow them to take your charge card but also the extra fees for the points and rewards cards. The credit card company isn't giving you those travel miles or cash back rewards the businesses you use your charge cards at are giving you those rewards. We pay a discount fee/kickback to visa as well as a fee for those points and rewards all the while your credit card company is charging you a yearly fee and high interest rates. Think about your local small business owner before you whip out that credit card and consider using debit or cash. We still pay a small fee to take interac and most banks now charge business to deposit cash but it's still cheaper than merchant rates.
Carla Callegari - 8 years ago
Hopefully all of this attention will bring attention to the real issue and ignite change with the credit card companies so they lower the merchant fees in order to maintain their business. I don't understand why anyone would be upset with Walmart for making a business decision to eliminate one payment option (VISA) and help drive their own credit card usage or encourage consumers to pay cash. Every business looks for reasonable alternatives to decrease costs and increase profits wit the goal of maintaining sales and customer satisfaction. Nova Scotia Power that has a monopoly on an essential service and doesn't offer any credit options (unless you consider equal billing payments a form of credit) and charges extremely high interest rates on over-due balances. If you want power in Nova Scotia, you have no other options. Costco is another large company that doesn't accept Visa or American Express and it doesn't seem to be hurting their business. I'm sure they gave every major credit card company the opportunity to compete for the business and Master Card offered the best package for Costco and their customers. There are lots of other small business owners that don't accept any credit cards because of the high merchant fees or offer consumers a 5% discount as an incentive to pay cash.
I am glad that Walmart made this announcement and hope other large retailers consider doing the same. The threat of losing substantial business will force credit card companies to re-evaluate their current merchant charges and hopefully come up with a better agreement.
G. Voigt - 8 years ago
1) My humble theory is that Walmart is trying to force people to apply for their Walmart MasterCard. So... they want to save on fees, yet they turn around and charge an unbelievable 19.98% on their credit cards. If I have a Visa that only charges me 12.5%, why should I not be able to use that? I love Walmart but come on guys... you're already making big bucks. Don't stick it to the consumers any further !! Much as I love shopping at Walmart, I just can't support them on this.
It's time for SOMEONE to take pity and show compassion to the consumer. We just seem to get hit in the face at every turn.
n - 8 years ago
Wall Mart sux
F. Gibraltar - 8 years ago
It's about time someone raise against Credit card company in Canada. Visa and MasterCard are charging excessive fees, not counting excessive rates. All of this at the consumer's expense; we all pay for that even if you don't see it, they are stealing your money in your pocket. I fully support Walmart in this fight and hope other big merchandiser will do the same.
As a small business owner I support Walmart in this showdown. Merchant fees are not just the rate the credit card company charges the business to allow them to take your charge card but also the extra fees for the points and rewards cards. The credit card company isn't giving you those travel miles or cash back rewards the businesses you use your charge cards at are giving you those rewards. We pay a discount fee/kickback to visa as well as a fee for those points and rewards all the while your credit card company is charging you a yearly fee and high interest rates. Think about your local small business owner before you whip out that credit card and consider using debit or cash. We still pay a small fee to take interac and most banks now charge business to deposit cash but it's still cheaper than merchant rates.
Hopefully all of this attention will bring attention to the real issue and ignite change with the credit card companies so they lower the merchant fees in order to maintain their business. I don't understand why anyone would be upset with Walmart for making a business decision to eliminate one payment option (VISA) and help drive their own credit card usage or encourage consumers to pay cash. Every business looks for reasonable alternatives to decrease costs and increase profits wit the goal of maintaining sales and customer satisfaction. Nova Scotia Power that has a monopoly on an essential service and doesn't offer any credit options (unless you consider equal billing payments a form of credit) and charges extremely high interest rates on over-due balances. If you want power in Nova Scotia, you have no other options. Costco is another large company that doesn't accept Visa or American Express and it doesn't seem to be hurting their business. I'm sure they gave every major credit card company the opportunity to compete for the business and Master Card offered the best package for Costco and their customers. There are lots of other small business owners that don't accept any credit cards because of the high merchant fees or offer consumers a 5% discount as an incentive to pay cash.
I am glad that Walmart made this announcement and hope other large retailers consider doing the same. The threat of losing substantial business will force credit card companies to re-evaluate their current merchant charges and hopefully come up with a better agreement.
1) My humble theory is that Walmart is trying to force people to apply for their Walmart MasterCard. So... they want to save on fees, yet they turn around and charge an unbelievable 19.98% on their credit cards. If I have a Visa that only charges me 12.5%, why should I not be able to use that? I love Walmart but come on guys... you're already making big bucks. Don't stick it to the consumers any further !! Much as I love shopping at Walmart, I just can't support them on this.
It's time for SOMEONE to take pity and show compassion to the consumer. We just seem to get hit in the face at every turn.
Wall Mart sux
It's about time someone raise against Credit card company in Canada. Visa and MasterCard are charging excessive fees, not counting excessive rates. All of this at the consumer's expense; we all pay for that even if you don't see it, they are stealing your money in your pocket. I fully support Walmart in this fight and hope other big merchandiser will do the same.