UPDATE 2-Walmart Canada to stop accepting Visa, states fees expensive

A Wal Mart store front is seen in Toronto March 5, 2009.

Reuters/ Mike Cassese

Walmart Canada shops will stop accepting Visa Inc (V.N) cards since the charge card company charges merchants “unacceptably high” fees, the seller said on Saturday. Walmart has actually been not able to agree with Visa on an “appropriate fee” and will not accept the company’s charge card beginning July 18, it said in a statement. The business added it still hoped to reach an arrangement with Visa. The choice will not influence the United States shops of moms and dad Wal-Mart Stores Inc (WMT.N). “Walmart made this company decision despite Visa providing among the most affordable rates available to any merchant in the country,” a Visa spokesperson said in a statement. “We are dissatisfied that Walmart decided to put their own financial interests ahead of their own customers’ choice.”

Representatives of Walmart Canada and Visa decreased to attend to concerns on specifics of payment terms. A Walmart Canada representative said the merchant pays more than C$ 100 million ($ 78 million) in charge card fees every year, however specific deal charges are part of “private contracts.” Canadian merchants have long grumbled about what they call the high interchange charges they pay credit card companies.

In 2014 Visa and MasterCard Inc (M.N) stated they would cut Canadian deal rates to a typical reliable rate of 1.5 percent, after grievances about their charges practically led to federal government intervention. Unlike American Express Co (AXP.N), which generally negotiates a flat charge with every merchant, Visa and MasterCard have variable fees based upon the status of their various cards.

Small sellers, which usually have less power to work out transaction terms, have said that harms them as they are never ever sure of the rate they will be billed in between 1 percent and 3 percent on any provided transaction. Walmart Canada said shops in Thunder Bay in the northwestern part of the Ontario will be the first to stop accepting Visa cards, and the change will then be presented in stages to the remainder of the more than 370 Canadian Walmart stores. ($ 1 = 1.2777 Canadian dollars) (Reporting by Ethan Lou in Toronto; Editing by Expense Rigby and Steve Orlofsky).

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