Walmart vs Visa

This has turned into such a big deal for some reason. Everyone is losing their minds over Visa and Walmart having a spat, but no one is willing to look at the details from either perspective.

Walmart is a business. They're in business - as is every other business - to make a profit. They pay fees to all credit card companies to be able to accept. So when a bargaining agreement comes up, they are going to bargain and negotiate, to increase their profit margin. Same as the NHL lockout, and the NFL when their Collective Bargaining Agreements come up.

Visa is also a business, doing the same as Walmart.

How negotiations started, I can't say for sure. Who wanted more? Did Visa ask for more, or did they want to stay as they had been? I don't know. But seeing a contract ending, and knowing you will need to negotiate a new one, you should never step to the table claiming to want nothing. This is assuming this was Visa's course of action. Because in saying you want nothing, you have no bargaining chips to work to what you want.
Maybe Walmart was happy as is and came to the table with wanting lower fees as an ability to make sure all worked out. And perhaps Visa saying they wanted nothing simply offered Walmart the ability to negotiate for more. This - ladies and gentlemen - is business. As foul as it sounds, I respect Walmart for holding their ground.

July 18th is the day Walmart looks to stop accepting Visa. But only in Thunder Bay. Three stores in Thunder Bay will not be accepting Visa as of July 18th. One more time, only three stores in Thunder Bay will stop accepting Visa on July 18th.

Walmart is applying pressure. Same as a defensive line in football knowing were to push and poke. The new kid in the middle of the offensive line. The quarterback with the bum knee. It'll hit both businesses profits, yes. But it shows Visa that Walmart is taking no prisoners.

Visa has taken a very public approach, being outright with this dislike of Walmart's use of customers to get their way. But again, this is a negotiation. Customers - as uncivilized as it sounds - are another bargaining chip. If Visa's more worried than Walmart, they'll budge. Otherwise Walmart will keep pressing.

We need to remember that Walmart as about 400 across Canada. Three currently isn't gonna hurt too bad. And on top of that, they have their own MasterCard. So if Visa wants to stay in the game, offer another offerable credit card maybe. With better benefits to the customer than the current MasterCard.