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Kroger to Expand Non-Acceptance of Visa Credit Cards

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The biggest hit will be their customers who use debit cards since most debit cards seem to be branded on the Visa network. 

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9 hours ago, centex said:

The biggest hit will be their customers who use debit cards since most debit cards seem to be branded on the Visa network. 

They continue to take Visa debit cards, just not Visa credit cards.

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I have to give them credit for being willing to stand up to Visa. Unless some other big chains join them though they are going to end up having to back down.

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37 minutes ago, ccn3 said:

I have to give them credit for being willing to stand up to Visa. Unless some other big chains join them though they are going to end up having to back down.

Costco much?

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There's a big difference between Costco and Kroger. Costco is for discerning consumers with a credit card for every occasion. Kroger has a ton of customers who only have a Visa credit card, or their other cards are maxed out. 

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Posted (edited)
2 hours ago, ccn3 said:

There's a big difference between Costco and Kroger. Costco is for discerning consumers with a credit card for every occasion. Kroger has a ton of customers who only have a Visa credit card, or their other cards are maxed out. 

based on my recent visits to costco I don't understand what you mean by "discerning customers." more like customers who think they are saving money by buying 150 pounds of okra, 50 kg of imitation crab meat, and giant plastic containers of pretzels.

 

ETA: if anything, Kroger's market position gives it MORE influence over Visa than Costco has.

Edited by hegemony

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It isn't clear to me how involved VISA was in the Costco switch to Citi. Citi also issues Mastercard products.

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56 minutes ago, chicagorich said:

It isn't clear to me how involved VISA was in the Costco switch to Citi. Citi also issues Mastercard products.

you're conflating two issues; 1) the co-brand contract and 2) the choice of networks.

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5 hours ago, hegemony said:

based on my recent visits to costco I don't understand what you mean by "discerning customers." more like customers who think they are saving money by buying 150 pounds of okra, 50 kg of imitation crab meat, and giant plastic containers of pretzels.

 

ETA: if anything, Kroger's market position gives it MORE influence over Visa than Costco has.

I could be wrong, I don't have kids so I shop at Kroger or Publix, but I imagine for people with big families Costco is cheaper, and I suspect it has a more affluent clientele. I can't imagine a lot of poor people paying a membership fee to buy groceries.

 

 I am not sure what you're referring to with Costco, the fact that they used to only take Amex and now they take Visa at a lower rate? That's a completely different issue. Visa isn't just going to capitulate on fees without an exclusivity agreement, and Kroger does not want to stop accepting Mastercard, AMEX, and Discover. Without that Visa isn't just going to capitulate, and end up having their margins cut everywhere. I think they would rather protect their margins and lose Kroger than to keep Kroger and have everyone demanding a fee reduction.

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I don't understand why Costco customers who are willing to sit in an idling car for 45 minutes waiting for a gas pump can't use part of that time to fish out their membership and payment cards.

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you're still conflating Costco cobranding of a credit card with negotiating with a single network.

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1 hour ago, ccn3 said:

And you're still not making a coherent point.

 

I hope you feel better.

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Just trying to figure why exactly you think Visa will cave on this. Certainly if other chains follow Kroger's lead then Visa will have no choice, but they will win this battle if Kroger is left to fight it alone. JMHO, time will tell who's right.

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Costco's the cheapest place I know for JW Blue. Love the large bags of green beans and peas.

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Those fees finance our SUBs and rewards so I would hate to see this spread. We could end up like Australia or the EU.

 

My first protest will be to purchase an apple. Cashier gets to choose between Visa card or $100 note.

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