Nation's Largest Grocery Chain Threatens to Ban Popular Credit/Debit Card From Use Its Stores

August 02, 2018

It's all about the bottom line and what is forked out every year. Credit card fees are through the roof, and this popular grocery chain knows that.

Kroger is reportedly taking steps to ban all Visa credit card transactions at their stores throughout the United States. The reason is due to the excruciating amount of swipe fees, according to "Bloomberg."

While Kroger is in only 21 states, the chain owns a slew of other 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.

Kroger says that they plan to stop accepting Visa credit cards starting August 14 from their Foods Co. Supermarkets stores in California. This will include 21 stores and five fuel centers.

Chris Hjelm, Kroger spokesperson, said in an interview that the parent company might follow suit.

“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,” Hjelm said.

When the cost retailers pay in credit 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," he said.

Visa Responds:

"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 KIVITV, the National Retail Federation reports that approximately 2 percent of all transaction go toward swipe fees.

Do you use a Visa credit card? Will this impact you? Let us know!