Walmart Against Visa. Walmart Pay Coming To Canada

Jul 20, 2016

According to the Globe and Mail, Canada’s #1 national newspaper, Walmart could introduce its own electronic payment system called “Walmart Pay” in Canada in 2017. Thus, Walmart would strengthen itself in a fight with Visa over credit card fees.

Walmart in Canada

Walmart, an American multinational retail corporation operating a chain of hypermarkets, discount department stores, and grocery stores, enables its users to upload their payment information to a Walmart app. Thus, users get an opportunity to pay by phone at store checkouts, without using any payment card.

Walmart Canada is going to stop accepting Visa credit cards starting this summer. The cards will be refused at the stores in Thunder Bay, Ontario first. According to Mathieu Bedard, an economist at the Montreal Economic Institute, the fact that Walmart would start refusing Visa is a sign of the questionable market power of companies offering credit cards.

Such decision is the result of a struggle between these 2 companies in recent years. Walmart has accused Visa of taking advantage of its influence over the market to charge excessive fees for purchases. As for Canadian retailers, they give their support for Walmart in the dispute.

Walmart against Visa over High Credit Card Fees

According to Diane Brisebois, President of Retail Council of Canada, higher credit card fees mainly result in higher prices paid by consumers. On the whole, they cost Canadian consumers more than $5 billion on a yearly basis.

Canadian merchants interested in opening a reliable and low-cost Canadian merchant account for their businesses should consider turning to eMerchantBroker. EMB is a reputable payment processor operating both in the US and Canada. EMB is voted the #1 high risk processor in the US and boasts an A+ rating with the BBB.

Brisebois further mentions that the situation related to credit card fees have been the same in many other countries. In the UK, credit card fees jumped to 0.3% of the purchase price as compared to 1.5% found in Canada.

Many experts in the field think the dominance of Visa and MasterCard over the electronic payments market is coming to its end. Thanks to the fintech revolution, meaning the wave of startups changing finance for the better, retailers such as Walmart are establishing their own payment systems so to save on fees and not to lose consumer data.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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