Why didn't Visa/MC just pull the plug on Walmart?

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amdforever2

Golden Member
Sep 19, 2002
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Why didn't Visa/MC, the minute that Walmart started the crap, just suspend their Visa/MC processing abilities?

Customers would be furious, and Walmart would have to explain why.

When places like Winco and Taco Bell don't take cards I get mad at the businesses, not Visa/MC.
 
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Eli

Super Moderator | Elite Member
Oct 9, 1999
50,419
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81
What are you talking about? :confused:

BTW, the reason WinCo doesen't take cards is because they did a trial at a few stores, and determined that it would increase their cost, which would cause them to raise their prices. They felt that this was unacceptable.

<--- WinCo regular
 
Turkish

Turkish

Lifer
May 26, 2003
15,547
1
81
Originally posted by: amdforever2
Why didn't Visa/MC, the minute that Walmart started the crap, just suspend their Visa/MC processing abilities?

Customers would be furious, and Walmart would have to explain why.

When places like Winco and Taco Bell don't take cards I get mad at the businesses, not Visa/MC.
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What the hell are you talking about?
 
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EvilPaper

Member
Mar 1, 2004
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At first, if they refused to accept debit cards ran through the Visa/MC network, Visa/MC could have just yanked their privileges.

But, someone filed a lawsuit. So, as of January 04 -- all new debit cards have the word DEBIT above the Visa/MC logo and merchants have the right to decide it they want to take just credit cards and just allow debit cards via PIN. (Through an ATM network) Or not even take them at all. Wal-mart stopped taking MasterCard debit cards because of the fees associated, so you have to enter your PIN if you have a MasterCard debit card.

The battle over debit vs credit, entering a PIN or signing, isn't going to end anytime soon. Going through the ATM networks is cheaper and easier for the merchant, but costs more for the bank. Using the Visa/MC networks is cheaper for the bank, more costly for the merchant.
 
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Eli

Super Moderator | Elite Member
Oct 9, 1999
50,419
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Originally posted by: EvilPaper
At first, if they refused to accept debit cards ran through the Visa/MC network, Visa/MC could have just yanked their privileges.

But, someone filed a lawsuit. So, as of January 04 -- all new debit cards have the word DEBIT above the Visa/MC logo and merchants have the right to decide it they want to take just credit cards and just allow debit cards via PIN. (Through an ATM network) Or not even take them at all. Wal-mart stopped taking MasterCard debit cards because of the fees associated, so you have to enter your PIN if you have a MasterCard debit card.

The battle over debit vs credit, entering a PIN or signing, isn't going to end anytime soon. Going through the ATM networks is cheaper and easier for the merchant, but costs more for the bank. Using the Visa/MC networks is cheaper for the bank, more costly for the merchant.
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Interesting.

I've been trying to use Credit(ie: do not have to enter PIN) with my debit card as much as possible, because I'm signed up for Wells Fargo Rewards, and you only get points for "credit" charges.. lol
 
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amdforever2

Golden Member
Sep 19, 2002
1,879
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....and what I want to know is that why didn't, when that lawsuit was filed, Visa/MC pull their ability to process transactions altogether.


I bet they would have rethough that lawsuit.
 
ABitTooSpicy

ABitTooSpicy

Senior member
Jun 30, 2004
922
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Originally posted by: Demon-Xanth
Am I the only one so lost that thier picture is on a milk carton?
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Yeah i dont know what the OP is talking about... links anyone?
 
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spidey07

No Lifer
Aug 4, 2000
65,469
5
76
I have no idea what the OP is talking about but I can pretty much guarntee the answer is...

"because you don't mess with WalMart. Especially a transaction company who must make a substancial amout of money from them"

WalMart tells the market/vendors what to do, not the other way around.
 
Freejack2

Freejack2

Diamond Member
Dec 31, 2000
7,751
8
91
It's total BS. To use my card as a debit card costs me $1 per transaction.
Walmart can go fly a kite. I almost never shop there anymore.
 
KK

KK

Lifer
Jan 2, 2001
15,903
4
81
Originally posted by: Freejack2
It's total BS. To use my card as a debit card costs me $1 per transaction.
Walmart can go fly a kite. I almost never shop there anymore.
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You need to get a new card/bank I would think. Does it cost you that much every time you use it as a debit card?

KK
 
BigSmooth

BigSmooth

Lifer
Aug 18, 2000
10,484
12
81
Originally posted by: Eli
What are you talking about? :confused:

BTW, the reason WinCo doesen't take cards is because they did a trial at a few stores, and determined that it would increase their cost, which would cause them to raise their prices. They felt that this was unacceptable.

<--- WinCo regular
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Some WinCos take debit cards. I shop at the Tigard store, and they take them.
 
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spacelord

Platinum Member
Oct 11, 2002
2,127
0
76
Use a regular credit card and just pay your bill at the end of the month. Simple.
I have never used a debit card in my life nor paid with check at a store.
 
dullard

dullard

Elite Member
May 21, 2001
26,196
4,868
126
Background:

CC companies as well as banks get paid for each transaction. A typical CC purchase will net 4% for the CC company. So if you buy $100 worth of goods, the store will get ~$96 and the CC will get ~$4. Of course this varies slightly by CC and by size of order. Aside: Discover charges more than most CC companies, thus many stores don't take Discover. Where do you think that 1% cash back comes from?

Debit cards came along and charged the stores a higher fee than for a CC. As far as I know, the fees have changed back and forth (so debit cards may not have always been costlier to the business). Walmart wanted to use MasterCard credit cards but not debit cards to save money. Lawsuits followed. Walmart felt it was their right to accept a CC and not a debit card. Master card disagreed.

Amdforever2:

Think about it. Walmart makes has $200+ billion in revenues yearly. Imagine the potential to earn 4% of that. MasterCard would be stupid to turn away all that income. Obviously not all purchases use a CC, but still that is a huge source of income to the credit card company.

Aside:

A debit card has less federal consumer protections than a credit card. Plus it costs the company more (meaning they will pass those costs onto the consumer). Thus please use a credit card instead of a debit card if you have the choice (assuming you are responsibe enough to use a credit card wisely).
 
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BS911

Senior member
Oct 10, 1999
479
0
0
I know they are old fashioned and all but checks &amp; cash are still accepted too! :)
 
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bobbybe01

Banned
May 30, 2004
2,338
1
0
I understand what you're talking about...however it costs businesses money to use a credit card/ATM machine. I thought Taco Bell was cheap enough so you didn't have to use a card? (I know, I'm kidding, kind of...)
 
Rumpltzer

Rumpltzer

Diamond Member
Jun 7, 2003
4,815
33
91
Originally posted by: gourmettea
Who the hell uses a credit card at Taco Bell?
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yo quiero taco bell.

yeah, i don't think $4 food needs a credit card. i notice they have the atm hooked up to the register thing at most taco bells, though... and that's the only place i ever see it used by people.

i noticed last night that krispy kreme takes credit cards. $7 for a dozen donuts, though... it's getting out of hand.
 
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