Wal-Mart has begun the process of carrying through on its threat to stop accepting Visa cards in some of its Ontario stores unless the credit card company lowers its transaction fees. As a first step, three Wal-Mart stores in Thunder Bay area are not accepting Visa cards.
Wal-Mart is hoping Visa will reduce their fees. Visa however has indicated that they remain committed to doing everything reasonable to ensure Canadians can use their Visa cards everywhere they wish to shop, including at Wal-Mart stores.
No lower fees as of yet.
Canada is becoming a battleground or more appropriately called, a test market for retailers to flex their muscles. In 2014, Costco Canada told their customers that they would stop accepting American Express cards in 2015 – being replaced with the acceptance of Mastercard cards only. Five months later, American Express and Costco announced they planned to end their exclusive American relationship as well.
It will be interesting to see if Wal-Mart rolls out their strategy beyond their three stores in Thunder Bay.