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valunvesthere (22.82)

Applying physics to economics on Walmart Canada's visa decision



June 13, 2016 – Comments (2) | RELATED TICKERS: AXP , MA , V

Newton's third law states, "to every action there is always opposed and equal reaction." 

The decision by Walmart Canada to stop accepting Visa may hurt its sales but also its decision may not affect its sales and definitely benefit American Express Company (NYSE:AXP) and MasterCard Incorporated (NYSE:MA) if customers apply for either or both cards for the purpose of continuing making purchase transactions with credit card at Walmart Canada.

Not making any predictions here but just listing two scenario cases of Walmart Canada's decision for not accepting Visa Inc. (V).   



Walmart Canada to stop accepting Visa cards due to High fees | Walmart Canada 

All Exclusive Plus Published on Jun 11, 2016

Visa Canada said in a written statement that the company 'regrets' Walmart's decision.

Walmart says it intends to join the list of retailers in Canada that don't accept Visa cards, citing high fees for transactions. It's a move one retail analyst has said will cause "pain on all sides."

All credit cards charge fees to retailers, which generally are between one per cent and 2.5 per cent of the cost what's being sold. The fees vary depending on the type of card the customer is using — cash-back and premium cards generally have higher fees — and the type of retailer they're shopping at.

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