Kroger expands its Visa ban

The Kroger Co.’s Smith's Food & Drug stores division will no longer accept visa credit cards as a form of payment.

The Salt Lake City, Utah-based grocer announced that its 142 supermarkets and 108 fuel center locations across seven states (Arizona, Idaho, Montana, New Mexico, Nevada, Utah and Wyoming) will no longer accept the credit cards beginning April 3. The company says this decision will help keep prices low for Smith’s customers.

"Visa has been misusing its position and charging retailers excessive fees for a long time," said Mike Schlotman, Kroger's executive vice president and CFO. "They conceal from customers what Visa and its banks charge retailers to accept Visa credit cards. At Smith's, Visa's credit card fees are higher than any other credit card brand that we accept. Visa's excessive fees and unfairness cannot continue to go unchecked. That's why, starting April 3, Smith's will accept all forms of payment except Visa credit cards."

This is the second Visa ban for Kroger, which last year banned Visa credit cards in its Food Co. stores.