Foods Co Kicks Visa Credit Cards to Curb

The California subsidiary of Kroger will no longer accept Visa credit cards at 21 grocery stores and five gas stations as of mid-August.

July 31, 2018

SAN FRANCISCO – Foods Co, a subsidiary of Kroger, has broken up with Visa. The company recently announced that it will stop accepting Visa credit cards as payments at 21 grocery stores and five gas stations on August 14, Pymnts.com reports.

The company cited Visa’s high interchange rates and network fees as the reason for the change. “Visa’s rates and fees are among the highest of any credit card brand,” according to the Foods Co press release. Food Co said it would pass along the savings from no longer paying Visa fees directly to consumers. The change only affects Visa credit cards, as Visa debit cards can still be used.

“Our customers consistently tell us that one of the most important factors in choosing Foods Co as their supermarket of choice is our low prices,” said Bryan Kaltenbach, president of Foods Co. “At Foods Co, we are committed to saving our customers money. Today’s decision will help Foods Co continue to deliver great value to our customers with low prices, fresh products and friendly service.”

The grocery stores affected by the change are in the Central Valley, Sacramento Valley and the San Francisco Bay area. “We realize this will be a change for some customers,” said Kaltenbach. “But we believe this change will benefit all our customers by allowing our Foods Co stores to continue to offer the things our customers value most, including our low prices, fresh produce and services, more than payment type.”

Visa responded by expressing its disappointment in the change and reiterating its commitment to finding a solution. “When consumer choice is limited, nobody wins. Our goal is to protect the interests of our cardholders to ensure they can use their Visa credit cards wherever they shop. Visa remains committed to working with Kroger to reach a reasonable solution,” said a Visa spokesperson.

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