Idaho Smith’s Stores No Longer Accepting Visa Credit Cards
Smith's Food and Drug stores in Idaho will no longer be accepting Visa credit cards starting next month. Starting April 3rd you'll no longer be able to pay for your grocery or other purchases at Smith's in Twin Falls with a Visa credit card, but you will still be able to pay with a Visa debit card.
The change is happening due to the fees Visa charges Smith's stores (a division of Kroger) to process credit card purchases, fees which range between one and three percent. That may seem like a small number but according to Bloomberg it equals around $90 Billion in fees from retailers that allow Visa credit card usage. Kroger also owns Fred Meyer but the Visa credit card ban does not affect purchases at Fred Meyer stores.
Kroger's chief financial officer says 'we're not going to stand for these high fees' and that Visa sometimes charges double that of other cards. USA Today also notes that while the ban on Visa credit cards will save Kroger money, consumers may not see savings in their purchases.
The credit card ban also affects Smith's stores in six other states including Utah, Nevada, Montana, Wyoming, New Mexico, and Arizona.