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Walmart to Stop Accepting Visa in Canada

It has been reported that Walmart Canada will stop accepting Visa credit cards. The phase out will start in Thunder Bay, Ontario on July 18, 2016 and then it will roll-out to the rest of the country.

One of the reasons listed is that Visa offers high retailer fees. But another part of it has to do with its relationship with MasterCard (whether they publically admit it or not). Walmart offers its own co-branded credit card, which is a MasterCard.

Credit Card Highlights

The Walmart Rewards MasterCard is a pretty straightforward credit card. You may see the term “Walmart Reward”, which essentially just means cash back that can only be used on Walmart purchases.

  • No annual fee
  • Earn $25 sign up bonus ($15 after your first purchase at Walmart and $10 for going paperless)
  • Earn 1.25% cash back on Walmart purchases
  • Earn 1% cash back on all other purchases

Personal Experience

Personally, I use the Capital One Aspire World Travel Elite MasterCard, for a 2% return on all purchases, including Walmart, so that’s why I would never bother signing up for the Walmart credit card. They would need to offer above the 2% mark. When Target had a co-branded credit card, they offered 5% cash back instead. Though they did end up closing up shop throughout Canada.

I don’t think that this will make that big of a difference to Walmart’s business. I am guilty of going to Walmart, because the prices are more competitive, especially with its price-match program.

Thoughts

I highly doubt that just because they stop accepting Visa credit cards, that it will reduce the number of customers. If anything, this is probably a start move by Walmart, as it will probably even encourage more people to sign up for their credit card. We don’t have to look further than Costco’s model, where they used to only accept American Express. Now that they switched to MasterCard only, it might have even helped their business.

With MasterCard having exclusive at 2 of the major stores in Canada, Visa and American Express have some work to do.

How do you feel about Walmart?

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Pointshogger aims to provide analysis and updates on earning loyalty reward points and maximizing the value of your points. We hope to inspire our readers to experience the joy of travel and make the most out of what they've already got!

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