WalMart and debit cards

zodiac66

Diabloii.Net Member
WalMart and debit cards

I guess I must be living in some sort of box, but today was the first time I heard of Wal-Mart no longer accepting the Mastercard debit cards as credit cards. For those who may not know about them, they are basically ATM cards with a Mastercard logo that can be used as a credit card and the money taken right out of your checking account.

I just received my income tax refund and went out shopping. It has been eons since I set foot into a Wal-Mart and I was near one, so I thought "Lets just stop here." I had quite a few things in my cart ranging from toys for the kids to cooking utensils. All in all, it was probably around $400.00. I get up to the cashier, swipe my card and she tells me to enter my PIN #. I told her this is credit not debit. She then tells me that they no longer accept my card in a credit type capacity. Either I can use it as a debit and get charged a fee, go to their ATM and get charged 2 fees, or write a check, which I don't take my checkbook with me anymore. As a result of their new policy, they lost my sale. I left and went to Kohls and Target and got all my stuff.

Wal-Mart states that the Mastercard debit cards cost them too much money to process, yet, they still take visa debit cards. In order for me to use a card at Wal-Mart, I would have to switch banks which I don't want to do. I paid off my credit cards, cut them up and tossed them so I don't get into debt, so paying with a credit card is not an option. Paying with a check would be OK, but I am only allowed a certain amount of checks each month and I use them for doctor bills, rent and utilities.

From what I have gathered, Wal-Mart struck a deal with VISA to have lower rates when a credit card is used. By having those lower rates, the "savings" is passed along to the customers. I don't buy this load of crap. To me, I view it as the Wal-Mart monopoly just screwing the little guy again. Nowadays, banks are very picky on how many checks you write. Mine actually rewards me for using my debit card as a credit card. So, if I would continue to shop there, I would loose all my bonus points because I cannot use my card as a credit card.

Maybe someone can enlighten me on exactly how much it costs a business to accept these types of cards. I can't imagine it would be a whole lot or no one would accept them.

Also, I have gathered that they are seeing how well this is accepted. If no sales are lost, other stores may file suit. Perhaps in the near future, the debit/credit card will no longer be accepted anywhere.
 

Drosselmeier

Diabloii.Net Member
Some little voice in the back of my head say that the fee is five cents or something like that. I could be way off though... I just vaguely remember hearing that somewhere or other.
 

zodiac66

Diabloii.Net Member
I think it is a % of the sale. What scares me is that Wal-mart seems to set the precident for every other retailer in the US. What that "store" does, others follow suit or go out of business. This store was built on driving all competition away and now they are penalizing the customers. This act really bothers me for some reason.
 

Intolerance

Diabloii.Net Member
zodiac66 said:
I think it is a % of the sale. What scares me is that Wal-mart seems to set the precident for every other retailer in the US. What that "store" does, others follow suit or go out of business. This store was built on driving all competition away and now they are penalizing the customers. This act really bothers me for some reason.
Ah, capitalism.
 

Thelioness

Diabloii.Net Member
It depends on the processing company and the volume, but it can cost some where between 1.5%-3% of the sale plus a flat fee of up to 30 cents for MasterCard and Visa. Debit cards run a bit higher, and the fees for Discover and American Express are different too. If I remember right, American Express charges the highest processing fees.
 
I will try to find out more about this, my daughter working for Wal-Mart and all. Maybe she's got some info.
I can understand why you're bothered by this. I'm bothered by it, too. One thing I think, though, is that maybe American Express is the real culprit here if they do indeed charge the highest fees. Is it necessary, or just pure greed? Perhaps there has always been a fee limit imposed by Wal-Mart and American Express exceeded it, who knows? Should they just keep accepting the card, and raise their prices to cover the fee?
I'll see what I can find out.
 

AeroJonesy

Diabloii.Net Member
Heh, Zodiac, I know exactly what you are talking about. In fact, I can even guess which bank you've got all your dough in. The same thing happened to me about 2 weeks ago. It's really lame. Guess I'll do all my shopping at Meijer from now on. Perhaps Meijer will cut a deal with MasterCard gaining lower rates there. Next thing you know, each major credit card company will have it's own stores its customers will have to shop at.
 

ScanMan

Diabloii.Net Member
zodiac66 said:
From what I have gathered, Wal-Mart struck a deal with VISA to have lower rates when a credit card is used. By having those lower rates, the "savings" is passed along to the customers.
If there is one thing Wal-Mart loves doing it is using it's "world biggest retailer" status to strong-arm other companies.

Be VERY careful buying electronics at Wal-Mart. Their size gives them enough purchasing power to force electronics manufacturers to make special "Wal-Mart editions" of their goods. Wal-Mart will have them strip off a few features and knock a few bucks off the wholesale price so Wal-Mart can turn around and offer the "best price". You can tell these "special" items by carefully checking the FULL model number...they will be slightly different than the "normal" model.
 

Anakha1

Banned
Walmart = Evil doombringer Satanic cult corporation. They're the most corrupt company in the history of capitalism. Check the fine print in anything they make you sign... you may be giving them rights to your first born child.
 

CaptJoe213

Diabloii.Net Member
my wife works for wal mart and says there's no real explaination given to the people in the store where she works. It boils down to the banks pulling the extra charges or something like that...I kinda forgot her explaination, but she says that the individual banks being involved might be the reason that they turn down mastercard and take AmEx. I could be wrong, wal mart really pisses me off, they really mistreat their employees at times, so I was busy fuming instead of listening lol....

wal mart truly is the Devil
 

Corneo

Diabloii.Net Member
mehh...

Where I lived before I moved to college, Walmart planned to build a super center. That is its a Walmart with everything in it. Clothes, groceries, electronics, etc. But people in this small town fought against it. But Walmart will not let this group of people deter them, so on with construction!!!
 

Dutchman

Diabloii.Net Member
First of all Amex charges the highest % fee because they are a charge card and not a credit card. They make no money on interest as customer are required to pay off their balances in full each month. They are a convenience, not a credit provider. Recently they have begun offering traditional credit type cards but that is still relatively new.

In terms of Walmart you can't really blame them from a business perspective. You are using a debit card that looks like a charge card. It costs them more to process as a charge card than as debit. Basically they are just handing extra money to mastercard and getting none of the benefits of traditional credit cards, ie the customers ability to spend more than they have.

Walmart is a low margin, high volume retailer so they have to be careful about these things. I'm sure that hiding behind this decision is some sort of cost model that says that it just isn't worth doing business at all using the mastercard thing you have.

A pain in the arse yes, but sounds like good business to me.

Dutch
 

zodiac66

Diabloii.Net Member
Funny thing is there is a Wal-Mart Mastercard!! Why strike a deal with VISA debit/credit card issuers and not have a deal set up with the very company that issues their own Wally Mart credit card? Makes no sence to me :scratch:
 

ASTRALdragon

Diabloii.Net Member
hmm i don' think i've seen one wal-mart down here in southern CA. i know it's more of a southern type store and it's making its way across the US but i live like literally 15 miles from the west coast and i've seen no wal-mart.
 

Choogy

Diabloii.Net Member
Actually, wal-mart is starting to threaten grocery stores as well as some clothing stores. They have grown so large that they have everything. And in doing so, it will soon become a monopoly...
 

Killfrenzy

Diabloii.Net Member
bah i've already boycotted those bastards over something as simple as "out of order signs". simply put their damn pop machine ate my money i asked the clerk and they told me 'people have been telling us that all day". I ask them why the hell there isnt a sign on it and left
 
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