Reuters reports that Kroger’s “Smith’s Food and Drug Stores division will stop accepting Visa Inc’s credit cards, starting April 3, because of excessive transaction fees.”
This is the second such ban imposed by Kroger, which “stopped accepting Visa’s credit cards at its Foods Co stores in California in August last year, because of a price dispute over interchange rates and network fees.”
“"At Smith's, Visa's credit card fees are higher than any other credit card brand that we accept. Visa's excessive fees and unfairness cannot continue to go unchecked," said Kroger CFO Mike Schlotman.
A Visa spokesperson responded: “It is unfair and disappointing that Kroger is putting shoppers in the middle of a business dispute … When consumer choice is limited, nobody wins.”
This is the second such ban imposed by Kroger, which “stopped accepting Visa’s credit cards at its Foods Co stores in California in August last year, because of a price dispute over interchange rates and network fees.”
“"At Smith's, Visa's credit card fees are higher than any other credit card brand that we accept. Visa's excessive fees and unfairness cannot continue to go unchecked," said Kroger CFO Mike Schlotman.
A Visa spokesperson responded: “It is unfair and disappointing that Kroger is putting shoppers in the middle of a business dispute … When consumer choice is limited, nobody wins.”
- KC's View:
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For the record, if Kroger tells the story effectively and does not allow Visa to capture the narrative, then it will make clear to its customers that it is advocating for them, not working against them. That strikes me as a pretty reasonable position to take, and certainly positions Kroger on the right side of the issue - against usurious financial institutions that are hardly better than those who would send some guy named Bennie the Frog to break your kneecaps.
