News from the Wire

Walmart Canada issues statement on severing ties with Visa

Monday, June 13, 2016 — 11:55:37 (EDT)

Mississauga, Ontario, June 11, 2016 – Following an evaluation of credit card transaction fees in Canada and the rest of the world, we have concluded the fees applied to Visa credit card purchases remain unacceptably high.

Walmart’s purpose is to save customers money so they can live better. We are committed first and foremost to this purpose, which requires us to keep costs as low as possible.

To ensure we are taking care of our customers’ best interests and delivering on our promise of saving customers money, we constantly work to reduce our operating costs, including credit card fees. Unfortunately, Visa and Walmart have been unable to agree on an acceptable fee for Visa transactions. As a result we will no longer accept Visa in our stores across Canada, starting with our stores in Thunder Bay, on July 18, 2016. This change will then be rolled out in phases across the country.

To keep prices low we continuously assess opportunities to lower our operating expenses. Walmart Canada pays over $100 million in fees to accept credit cards each and every year. Lowering costs such as these is necessary for us to be able to keep our prices low and continue saving our customers money.

Customers will continue to be able to use other forms of payment including cash, Interac debit, MasterCard, Discover, and American Express.

We sincerely regret any impact this will have on our customers who use Visa and remain optimistic that we will reach an agreement with Visa.

About Walmart Canada

Walmart Canada operates a growing chain of more than 400 stores nationwide serving more than 1.2 million customers each day. Walmart Canada's flagship online store, walmart.ca is visited by 600,000 customers daily. With more than 95,000 associates, Walmart Canada is one of Canada's largest employers and is ranked one of the country's top 10 most influential brands. Walmart is committed to generating zero waste, being supplied by 100 per cent renewable energy and offering customers products that are produced responsibly. Walmart Canada's extensive philanthropy program is focused on supporting Canadian families in need, and since 1994 Walmart has raised and donated more than $250 million to Canadian charities. Additional information can be found at walmartcanada.ca .

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Source: Company press release.