A Kroger (NYSE:KR) Visa ban was announced by the retail giant, now expanding to a number of Smith’s Food & Drug Stores locations.
The credit card ban was implemented by the Cincinnati, Ohio-based supermarket chain, and it is now being included in 250 Smith’s Food & Drug Store locations in at least seven states. The Smith’s subsidiary has 142 supermarkets and 108 fuel centers in Arizona, Idaho, Montana, Nevada, New Mexico, Utah and Wyoming, which will no longer be accepting Visa credit cards as a form of payment starting on April 3.
The move is an extension of Kroger’s decision to ban Visa credit cards last August at its Foods Co. locations in California with the goal of saving on fees paid to Visa when processing purchases completed with credit cards. Most of the chain’s stores will still accept Visa credit cards, but the company added on Friday that it is still seeking new options to lower the swipe fees that businesses pay credit card companies.
These swipe fees can set a company back somewhere between 1% to 3% of the sales total, which costs retailers about $90 billion every year, according to data compiled by Bloomberg. Mike Schlotman, Kroger’s chief financial officer, said that the retailer will not stand for these fees as Visa sometimes charges the chain twice as much as other cards do.
KR stock is falling about 3.1% on Friday following the news.
More From InvestorPlace
- 10 Blue-Chip Stocks to Lead the Market
- 7 IPOs to Get Excited for in 2019
- 9 Best Stocks to Buy on U.S.-China Trade Optimism
The post Kroger Visa Ban Expands to Smith’s Food & Drug Stores appeared first on InvestorPlace.