Smith’s to quit accepting Visa credit cards

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This file photo shows a Smith’s grocery sign outside a store in the Las Vegas Valley.

Fri, Mar 1, 2019 (10:03 a.m.)

Smith’s grocery stores will stop accepting Visa credit cards starting April 3, citing excessive fees charged to retailers, parent company Kroger said today.

Smith’s will continue to accept all other forms of payment, including Visa debit cards, Kroger said in a news release.

The excessive interchange and network fees Visa and its issuing banks charge retailers drive up food prices for all customers, the grocer said.

Visa’s fees are the highest of any credit cards accepted in Smith’s and exceed grocery store margins in the highly competitive food retail industry, officials said.

“Grocery is a competitive business and our ability to keep prices low for our customers depends on controlling costs,” said Kenny Kimball, president of Smith’s, which operates 45 stores in Nevada.

Smith’s is the second Kroger banner to quit accepting Visa credit cards. Foods Co. Supermarkets in California stopped accepting Visa credit cards in August.

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