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Kroger has reversed its ban on Visa credit cards after previously accusing the company of 'excessive fees' that 'drive up food prices'

Oct 30, 2019, 18:17 IST

AP

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Kroger has reversed a ban on Visa credit cards, and will now accept the cards at all locations, a Kroger spokeswoman told Business Insider on Wednesday.

The spokeswoman did not elaborate on the reason for the reversal.

Kroger stopped accepting Visa credit cards in April at its Smith's Food & Drug chain, which has more than 130 stores in seven states.

The move followed an earlier ban on Visa credit cards at Foods Co., another Kroger supermarket chain.

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The bans stemmed from disagreements over transaction fees.

Kroger slammed Visa's transaction fees in March as "excessive" and said they "drive up food prices for all customers."

"Visa has been misusing its position and charging retailers excessive fees for a long time," Kroger CFO Mike Schlotman said at the time. "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 fired back with a statement saying, "It is unfair and disappointing that Kroger is putting shoppers in the middle of a business dispute."

Visa did not immediately respond to a request for comment on Kroger's decision to start accepting its credit cards again at all stores.

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