Walmart and Visa’s six-month argument over interchange fees has finally come to an end. Last Thursday, the two companies announced that they had come to an agreement, but made no mention of how it was reached.
“Visa cardholders can once again use their Visa credit cards as a form of payment in all Walmart stores across Canada,” Carla Hindman, spokeswoman for Visa Canada told CBC. Starting tomorrow, “Visa credit cards will be accepted at all Canadian Walmart stores, including in Manitoba and Thunder Bay, Ont.”
The aforementioned markets were the only ones affected by Walmart’s threat to stop accepting Visa cards.
The issue was caused by interchange fees, which retailers are charged for processing transactions. Most often, they are a percentage of the total value of goods sold. Consumers do not pay these fees directly, but they often settle the costs through higher priced goods.
Walmart noted that Visa’s fees were much higher than other card companies, while Visa says it offers Walmart one of its lowest fees. With this agreement, Walmart may see an increase in sales from customers who boycotted due to the Visa ban.
