On Friday, the 1st of March, 2019, the US supermarket Chain, Kroger Co. had issued a statement, saying that their Smith’s Food and Drug Stores division would not be accepting payments from Visa Inc. credit cards due to excessive transaction fees.
According to the statement, the new policy for another Kroger unit would be effective from the 3rd of April, 2019. In fact, Kroger had already stopped accepting payments from Visa credit cards at their Foods Co. stores in California last year due to a price dispute with Visa Inc.
over network fees, alongside interchange rates. Citing Visa’s credit card transaction fees are higher than any other credit card brand, the CEO of Kroger, Mike Schlotman said, “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. ” According to the statement, the company had also added that they would be continuing to seek other options for deducting the cost of credit card payments and keeping the prices lower for their consumers.
As a response, addressing the consumer hassles during making payment, a Visa spokeswoman said, “It is unfair and disappointing that Kroger is putting shoppers in the middle of a business dispute. When consumer choice is limited, nobody wins. ”