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Report: Nation's largest grocery chain may ban Visa transactions

Posted: 8:33 PM, Jul 31, 2018
Updated: 2018-08-01 13:41:14Z

Grocery chain Kroger is reportedly considering banning all Visa card transactions at its locations throughout the United States due to a dispute on swipe fees, Bloomberg reported

Kroger is reportedly taking the first step toward stopping Visa transactions. At its Foods Co. Supermarkets, which are located in California, the chain will stop accepting Visa transactions next month, Bloomberg reported. 

“It’s pretty clear we need to move down this path, and if we have to expand that beyond Foods Co., we’re prepared to take that step,” Kroger spokesperson Chris Hjelm told Bloomberg. "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.”

While Kroger itself has grocery stores in 21 states, Kroger owns a number of regional chains throughout the country — Baker’s, City Market, Dillons, Food 4 Less, Fred Meyer, Fry’s, Gerbes, King Soopers, Jay C, Food Store, Owens Market, Pay-Less Super Markets, QFC, Ralphs and Smith’s Food and Drug

Visa issued a response to Kroger's announcement. 

"Visa is disappointed at Kroger’s decision to stop accepting Visa credit cards at its Foods Co. stores. 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," Visa said in a statement. 

According to the National Retail Federation, roughly 2 percent of all transactions go toward swipe fees.