Walmart Canada will stop accepting Visa at its 16 stores in Manitoba on Monday, as the dispute over merchant fees between the retail giant and the credit card company continues to escalate.
Back in mid-July, Walmart began refusing Visa credit cards at its three stores in Thunder Bay, blaming the financial services firm charging high fees to merchants.
Walmart officials say the company pays more than $100 million annually in credit card fees, and remains committed to reducing Visa transaction costs.
Walmart claims the impact of the policy change on customers in Thunder Bay has been minimal, and the effected stores have noticed an increase in cash and debit payments.
Walmart announced over the summer that it would expand its phase-out of Visa at all of its Canadian stores, which total over 400.
The retail giant hasn’t determined which stores will be next in line.
Visa has issued a statement, saying Walmart’s action to further limit Visa acceptance in Canada is “disappointing.”
Visa has said Walmart was offered one of the least expensive rates for any merchant in Canada, but Walmart wanted fees that would have been lower than those charged to local grocery markets, pharmacies, convenience stores, charities and schools.
Both companies say they are committed to finding a solution, despite the dispute.