Shopping Discussion

Walmart Canada to stop accepting VISA? Nope...

  • Last Updated:
  • Jan 8th, 2017 9:34 pm
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Deal Expert
Aug 22, 2006
31271 posts
17295 upvotes
Gee wrote: That's my point, Costco screwed up. I had to use American Express and I opted for the Costco American Express because the rewards were good compared to other American Express cards

But with MasterCard, I opted for BMO and even after paying their annual fee, I still come out ahead vs the Costco Capital One card
What's better in terms of rewards? The old Amex or your current BMO? (or an even better MC logoed rewards card like MBNA?)?
If any MC card is better, it's actually better for you.
Sucks for Costco since I'm assuming they get a kickback for a signup but I don't think it's a loss either since if you did have their card vs any other MC card, your spend is identical so their costs are the same.
So while Costco loses out on a signup bonus they're not losing any additional money.

They're probably gaining money actually since now there's more people with a higher spend since they have a cc processor that doesn't suck now.
Deal Expert
Aug 22, 2006
31271 posts
17295 upvotes
Gee wrote: That's my point, Costco screwed up. I had to use American Express and I opted for the Costco American Express because the rewards were good compared to other American Express cards

But with MasterCard, I opted for BMO and even after paying their annual fee, I still come out ahead vs the Costco Capital One card
What's better in terms of rewards? The old Amex or your current BMO? (or an even better MC logoed rewards card like MBNA?)?
If any MC card is better, it's actually better for you.
Sucks for Costco since I'm assuming they get a kickback for a signup but I don't think it's a loss either since if you did have their card vs any other MC card, your spend is identical so their costs are the same.
So while Costco loses out on a signup bonus they're not losing any additional money.

They're probably gaining money actually since now there's more people with a higher spend since they have a cc processor that doesn't suck now.

EDIT: Bottom line: Win for the customer. Win for Costco. Sucks to be Amex.
Deal Addict
Sep 7, 2004
1599 posts
631 upvotes
Toronto
Ughhhhh. Just when I switched all my spending to my new TD Infinite Visa. Now the 2 places I shop at the most don't accept Visa anymore (Costco and Walmart). After my FYF is up I'm gonna cancel and then swap everything over to the Tangerine CB MC.
Deal Addict
Sep 7, 2004
1599 posts
631 upvotes
Toronto
r1lee wrote: Wow, that is surprising. Sucks...since I use my visa there all the time.

Costco never accepted visa's at any point in time.
Except in the states, where Visa is now the only card accepted at Costco...
Banned
Jan 12, 2015
4107 posts
27311 upvotes
Gee wrote: That's my point, Costco screwed up. I had to use American Express and I opted for the Costco American Express because the rewards were good compared to other American Express cards

But with MasterCard, I opted for BMO and even after paying their annual fee, I still come out ahead vs the Costco Capital One card

I'm sure I'm not the only one in this situation
Actually most people I know, did not want to sign up for an AMEX.

Whereas most people I know have a MC, so the changeover form Amex to MC was an easy transition for customers.

Its known that when paying with credit card people tend to spend more, so for Costco this will probably lead to a gain in sales.
Deal Fanatic
Nov 24, 2013
6479 posts
3344 upvotes
Kingston, ON
AmEx processing costs are certainly higher for Walmart as a percentage, but cost saving initiatives are targeted to help the bottom line, first and foremost. This is a negotiating tactic with Visa, because it's a bigger ultimate cost impact to Walmart (since Visa use is so common), and Visa probably has more to lose than Walmart in the standoff.


Someone above said you could only use the Costco AmEx at Costco before. You could actually use any AmEx. Those days are gone now, and MasterCard is really the best card option in Canada (MC exclusive stores, very few that take Visa but not MC). PC MasterCards have great rewards if you already shop their stores.
Deal Guru
Aug 14, 2007
12807 posts
3837 upvotes
--
TagYoureIt wrote: I only use Visa at Walmart. I'll be forced to get a Walmart Mastercard now if they don't accept it. Use it because we buy all of our groceries & we get cashback.
Get a MasterCard if you need to but not one from Walmart. Screw them.
Member
Aug 3, 2013
488 posts
289 upvotes
Durham
XtremeModder wrote: Get a MasterCard if you need to but not one from Walmart. Screw them.
+1, you're only helping the big guy i.e. using sucky WM MC nets you sucky rewards, plus, WM does not have to pay a processing fee. You would think they would give 5% back but noooo.

Tldr: Greedy Walmart sucks
Deal Fanatic
User avatar
Apr 24, 2017
7313 posts
6265 upvotes
Why does Walmart accept Visa in the US? So it means Visa charges much more in Canada?
Deal Expert
Jun 30, 2006
21133 posts
9788 upvotes
Toronto
So Walmart is not accepting VISA at 3 stores? That's it?
Sr. Member
Mar 3, 2015
699 posts
95 upvotes
Scarborough, ON
Something is going wrong at Visa Canada and it's chief CEO should resign for pure greed.

Ironicaly MasterCard has listerned and delivered to lower their fees and partnered with major retailers in Canada like Loblaws companies, BMO,RBC & Costco.

If this news is true then they will be second to MasterCard.

No frills stoped to accept visa.
Costco also don't accept visa.
Sobeys & Freshco will stop accept visa soon because their major bank partner is bmo which MasterCard has partnership with.

And losing Walmart is wake up call for visa management.

MasterCard Canada have started to even issue bmo debit cards which means they want to challenge interac system and to challenge interac it means they have to lower fees at interac level.
Deal Addict
User avatar
Aug 9, 2011
2052 posts
409 upvotes
GTA
Walmart basically has the edge here.... they have a ton of foot traffic coming into their stores daily. I think part of their strategy is to encourage these customers to also START using their Walmart Mastercard? Walmart is powerful. Tons of people go there. ME PERSONALLY, i'd stick with my Tangerine 2% card tho, and never would use their card.

I bet there are going to be a lot of complaints towards these walmart employees when some of these customers find out that their visa gets declined...feel bad for those cashiers.
Deal Addict
User avatar
Mar 3, 2005
1087 posts
832 upvotes
Mississauga
interesting ... the strategy of phasing in the change (or phasing out Visa if you will), starting with 3 stores, and the language about 'hoping to still reach an agreement' - make this seem like a bargaining strategy to lower fees.
Sr. Member
Mar 3, 2015
699 posts
95 upvotes
Scarborough, ON
hopetindall wrote: interesting ... the strategy of phasing in the change (or phasing out Visa if you will), starting with 3 stores, and the language about 'hoping to still reach an agreement' - make this seem like a bargaining strategy to lower fees.
No Walmart want their shoppers to have their MasterCard cc.
Just like Costco, No Frills who insist on MasterCard or cash.
I can see bitter rivalry between visa and Mc.
Deal Fanatic
Nov 24, 2013
6479 posts
3344 upvotes
Kingston, ON
supertronic wrote: MasterCard Canada have started to even issue bmo debit cards which means they want to challenge interac system and to challenge interac it means they have to lower fees at interac level.
I was with you up until here. I think MasterCard debit is just like Scotia, TD, etc's Visa Debit. It's for card-not-present transactions (online, reservations) and foreign countries, not replacing Interac network at point of sale.
Penalty Box
User avatar
Nov 13, 2010
7814 posts
1867 upvotes
Scarborough
Wonder what'll happen if ALL retailers and merchants only accepted DEBIT/CASH only.
What will these "credit" institutions do then.
Deal Expert
Aug 2, 2004
38395 posts
12020 upvotes
East Gwillimbury
death_hawk wrote: What's better in terms of rewards? The old Amex or your current BMO? (or an even better MC logoed rewards card like MBNA?)?
If any MC card is better, it's actually better for you.
Sucks for Costco since I'm assuming they get a kickback for a signup but I don't think it's a loss either since if you did have their card vs any other MC card, your spend is identical so their costs are the same.
So while Costco loses out on a signup bonus they're not losing any additional money.

They're probably gaining money actually since now there's more people with a higher spend since they have a cc processor that doesn't suck now.

EDIT: Bottom line: Win for the customer. Win for Costco. Sucks to be Amex.
MasterCard hands down offers me the better rewards even with the annual fee. I wouldn't have an American Express Card if it wasn't for Costco. That is where they screwed up. I believe that they were getting kick backs from American Express, but the move to MasterCard, doesn't decrease consumer spend, it decreases the kickbacks because they have less subscribers to the Costco MasterCard

Even the MBNA SmartCash is a better card than the Costco Capital One Card. Why would a Costco Member use Capital One?
Penalty Box
User avatar
Nov 13, 2010
7814 posts
1867 upvotes
Scarborough
now if they can also stop accepting other credit cards and only do debit/cash, it would be ok :lol:
Sr. Member
User avatar
Apr 28, 2012
964 posts
345 upvotes
QC
Happy that AMEX is still accepted :)

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