Kroger, the parent company of numerous grocery store chains including Roundy’s, Pick ‘N Save, and Copps, is threatening to ban Visa cards nationwide.
The dispute is over Visa’s swipe fees. The fees are in place to handle customers’ credit and debit card transactions.
Kroger has already banned the use of Visa cards in all of its Foods Co. California stores. That will go into effect this month.
Chris Hjelm, a spokesperson for Kroger said in an interview with Bloomberg:
“If we have to expand that beyond the Foods Co., we’re prepared to take that step. When the amount retailers pay in card fees ‘gets out of alignment,’ as we believe it is now, we don’t believe we have a choice but to use whatever mechanism possible to get it back in alignment.”
Visa responded, saying they’re disappointed with Kroger’s decision. A spokesperson commented:
“When consumer choice is limited, nobody wins. Our goal is to protect the interests of our cardholders to ensure they can use their Visa credit cards wherever they shop. Visa remains committed to working with Kroger to reach a reasonable solution.”