Visa credit cards no longer accepted at Smith’s starting today
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IDAHO FALLS — If you shop at Smith’s Food & Drug Stores, don’t plan on swiping your Visa credit card any longer. Effective Wednesday, the grocery chain says it will no longer accept the credit cards because of excessive fees.
In a news release last month, Smith’s said Visa bank fees are the highest of any credit card accepted by the store and that means retailers are forced to raise prices.
“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. Visa’s excessive fees and unfairness cannot continue to go unchecked.”
Smith’s will continue to accept Visa debit cards, along with Mastercard, Discover and American Express.
In a statement about the change, a spokesman for Visa said when consumer choice is limited, nobody wins.
“The Visa network delivers significant value for merchants,” spokesman Will Stickney said. “Kroger enjoys all of these benefits, and there is a cost for these services, like any other. It is unfair and disappointing that Kroger is putting shoppers in the middle of a business dispute. We have put forward a number of solutions to allow our cardholders to continue using their preferred Visa credit cards without Kroger-imposed restrictions, and we continue to work toward a resolution.”
Smith’s is a division of The Kroger Co. and is the second store in the company, behind Foods Co. Supermarkets in California, to stop accepting Visa credit cards. Fred Meyer is also owned by Kroger and will continue to accept the cards.
Smith’s operates 4 stores in Idaho, Montana and Arizona; along with 55 stores in Utah, 45 stores in Nevada, 23 stores in New Mexico, and 7 stores in Wyoming.