Suspected lower VISA merchant fees for Walmart could hit smaller businesses hard
TORONTO — The head of the Canadian Federation of Independent Business says he’s concerned that a deal struck between Walmart Canada and Visa over merchant fees could lead to higher costs for smaller businesses.
Details of the agreement, which was announced Thursday and ended a months-long dispute between the two corporate behemoths, have not been provided by the companies.
But Dan Kelly, president and CEO of the CFIB, says he suspects Walmart was able to negotiate a reduction in merchant fees — a move that could impact smaller merchants.
“Typically whenever there is a special deal created for one large merchant, it happens at the expense of smaller merchants,” he said, explaining that credit card companies and banks customarily look for different ways to make up lost fee revenue.