Smith’s To No Longer Accept Visa Credit Cards
SALT LAKE CITY, Utah – Customers will no longer be able to use Visa credit cards at Smith’s Food & Drug Stores beginning April 3.
The company announced Friday that the decision was made due to the excessive interchange and network fees the credit card company and its issuing banks charge. Those charges, according to Smith’s, drive up food prices for all customers.
“Visa has been misusing its position and charging retailers excessive fees for a long time,” said Mike Schlotman, Kroger’s executive vice president and CFO. “They conceal from customers what Visa and its banks charge retailers to accept Visa credit cards. 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.”
The change will affect all 142 supermarket and 108 fuel center locations across Utah, Nevada, New Mexico, Wyoming, Idaho, Montana and Arizona.
Customers will still be able to use their Visa debit cards, according to a media release.
Visa responded, saying that the company’s goal is to ensure every cardholder can use their Visa cars wherever they want to shop.
“The Visa network delivers significant value for merchants including access to more customers, increased sales, security and fraud protection, a quick and convenient checkout experience, and ongoing innovation and implementation of the latest technologies. Kroger enjoys all of these benefits, and there is a cost for these services, like any other,” according to a statement from a Visa spokesperson.
In the statement, the spokesperson writes that it is “unfair and disappointing” that Smith’s is putting customers in the middle of a business dispute.
“When consumer choice is limited,” according to Visa, “nobody wins.”
Smith’s will continue to accept all other forms of payment including Mastercard, Discover, American Express, cash, checks, SNAP, WIC, and Mastercard and Visa debit cards.