Wal-Mart's Resolve Wasn't To Be Discounted

W al-Mart, the home of "Always Low Prices ... Always," had a simple message for Interlink this month:

"Never High Debit Card Fees ... Never."

The retail giant announced on Sept. 4 that, effective Oct. 13, 2001, it no longer would accept Interlink-serviced debit cards because of a 125 percent rate hike. Wal-Mart will continue to accept other PIN-based debit cards, such as Star, Pulse, NYCE and AFFN. Standard credit card transactions will not be affected.

Interlink, a subsidiary of Visa International, had raised the fee for each debit card transaction from 20 to 45 cents.

"This is an outrageous action by Interlink and Visa," Mike Cook, Assistant Treasurer for Wal-Mart, said in a statement. "This is a hidden tax on consumers that ultimately will result in higher prices for retail goods."

Wal-Mart officials said Visa offered $32 million in incentive payments if Wal-Mart would accept the higher fees, but Cook said it was rejected because "it is not in the best interest of our customers."

Wal-Mart handles more than 350 million PIN-based debit transactions each year. Most Interlink customers are on the West Coast, and Cook said that less than 10 percent of Wal-Mart's total debit card business is handled by Interlink.

"We sincerely regret any inconvenience to our customers as a result of this," Cook said. "We realize it means some customers will have to use other forms of payment, and some may choose to change their debit card providers as a result."