Battle between Walmart and Visa could hit BC stores

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VANCOUVER (NEWS 1130) – The ongoing fight between Walmart and Visa continues, with the retailer saying it is extending its ban on the credit card company to Manitoba next month. But there are concerns this could soon affect the big-box retailer in BC.

Walmart is in a dominant position among retailers in Canada says David Soberman with the University of Toronto and he explains eventually extending the ban to BC certainly makes sense.

And that’s something other major chains could pick up on as well. “I think it will. I think there’s an ongoing concern about fees that are charged and that we don’t really see that are hidden, and this sort of fits that particular description in the credit card market.”

If it does happen, Soberman doesn’t think consumers here will be that upset. “I don’t think Walmart has noticed significant consumer backlash or a reduction in sales or store traffic. And as a result, they feel they can extend this policy outside of Ontario.”

Walmart says it already pays more than $100 million a year in Canada on all credit cards for its 400 Canadian stores. Visa has said it offered the retailer one of its lowest rates in the country, but it was rejected.

The changes to Manitoba go into effect next month. The store says customers will still be able to pay with cash, debit, MasterCard and American Express cards.

The Retail Council of Canada, which represents businesses including Walmart, said Visa and MasterCard have lowered their merchant fees to an average of 1.5 per cent.

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