Walmart Canada has announced on Saturday that it will no longer be accepting Visa credit cards, explaining that the fees applied to purchase “remain unacceptably high.”
All credit cards charge fees, which are generally one percent and two point five of the cost of what is sold, to its retailers.
Visa and Mastercard charge variable fees depending on the type of card that’s used while American express charges a flat fee, according to BBC News.
“To ensure we are taking care of our customers’ best interests and delivering on our promise of saving customers money, we constantly work to reduce our operating costs, including credit card fees,” Walmart Canada said in a statement.
However, in a statement from Visa, a spokesperson for the card company revealed that it offered the chain store “one of the lowest rates available to any merchant in the country.”
Doug Stephens, a retail analyst and strategist based in Toronto, stated that both Walmart and Visa will experience trouble on the agreement.
“You can’t ignore the fact that Visa has a tremendous market share,” he said, according to CTV News. “If you do business with Walmart, and Walmart ceases to do business with you, you can’t help but feel that.”
A representative from Visa Canada has expressed the company’s “regrets” over the store’s decision, saying that it will have a “negative impact” on its shoppers.
Walmart has more than 400 stores in Canada and more than 11,500 stores around the world. It is not the first store in Canada to cease accepting Visa cards from its customers.
No Frills have also stopped accepting cards from Visa as well as American Express, explaining that the cards are too expensive for their businesses. Costco, meanwhile, only accepts cards from MasterCard.
Walmart has said it will still accept cards from MasterCard, American Express and Discover.