Kroger Bans Visa Cards From More Stores In Fee Litigation

Kroger said he would no longer accept Visa credit cards in the 142 Smith's Food and Drug stores and in the 108 fuel distribution centers located in seven states, citing what he said would not be acceptable. he calls "excessive fees". Kroger is the second brand to ban Visa cards in the context of an ongoing dispute over fees charged by Visa to retailers who accept it.

Smith's operates 55 stores in Utah, 45 in Nevada, 23 in New Mexico, seven in Wyoming and four in Idaho, Montana and Arizona. The prohibition does not apply to debit cards and prepaid cards issued by Visa affiliated banks. The ban will come into effect on April 3, Kroger said in a statement.

The move follows Kroger's decision last year to stop Accepting Visa Cards in its Foods Co. Division, a subsidiary with 21 stores.

"At Smith, Visa's credit card fees are higher than any other credit card brand we accept," said Mike Schlotman, executive vice president and chief financial officer of Kroger. "The excessive fees and unfairness of Visa can not continue to not be controlled, which is why, starting April 3, Smith will accept all forms of payment, with the exception of cards. Visa credit. "

Visa called the decision "unfair and disappointing". In an email, a spokesman wrote that Kroger was putting his customers in the middle of a commercial dispute.

For his part, Kroger said he would pass on to consumers the money saved in the form of lower prices.

Nevertheless, Visa credit cards can still be used in the vast majority of Kroger's 2,800 food stores under brands such as King Scoopers, Harris Teeter, Fred Meyer and Ralphs.