Visa has taken out newspaper ads seen Thursday accusing Walmart of using consumers as pawns in its battle over merchant fees. Walmart said earlier this week that it will phase out the use of Visa at its 400 stores in Canada because the fees are just too high. Walmart said it pays more than $100 million in fees annually for customers using credit cards like Visa, MasterCard and Discover. Visa contends it has among the lowest rates of any merchant card in Canada however it has many so-called rewards cards that rival costly American Express. Costco finally ditched Amex for MasterCard because of fees. It is a longstanding argument between card companies and retailers. Merchants say it is the consumer who pays for “premium” cards giving gifts. Credit card charges in Canada are said to be among the highest in the world. Retailers across Canada are watching the skirmish with interest but most were unwilling to comment or indicate if they too are considering taking up their own arms against the dominant credit card provider. But the CBC quotes Alimentation Couche-Tard (Mac’s and others) as expressing sympathy with Walmart. Visa says Walmart is a bully “dragging millions of Canadian consumers into the middle of a business disagreement that can and should be resolved between our companies.”
