Bloomberg reports that Kroger “is considering expanding a ban on Visa credit cards that one of its California subsidiaries plans to put into effect next month. The retailer’s Foods Co. Supermarkets unit will stop accepting the cards on Aug. 14 at 21 stores and five fuel centers in Central and Northern California, including in San Francisco and Sacramento, in a dispute over fees, the Cincinnati-based grocery chain said in a statement Monday.”
“It’s pretty clear we need to move down this path, and if we have to expand that beyond Foods Co., we’re prepared to take that step,” says Chris Hjelm, Kroger’s chief information officer.
The company says that consumers will still be able to use Visa debit cards, as well as other credit card brands, and that the savings will be passed on to consumers.
“It’s pretty clear we need to move down this path, and if we have to expand that beyond Foods Co., we’re prepared to take that step,” says Chris Hjelm, Kroger’s chief information officer.
The company says that consumers will still be able to use Visa debit cards, as well as other credit card brands, and that the savings will be passed on to consumers.
- KC's View:
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I think Kroger is making the right move here, and I would expect that if it does not get the response it wants, it’ll expand the ban. It is really hard to take away credit card acceptance - as opposed to never accepting cards, which is part of the WinCo offering - but the message to customers has to be that the credit card companies are ripping them off, and Kroger has to work as an agent for the consumer.
That’s a compelling argument.
