4 ms·

They won't in the medium term because of how much they hate the credit card company's cut. 3% is a lot on an already low-margin transaction at Walmart.

creepydata 9y ago
Walmart wouldn't take credit if it wasn't financially sound for them to do so.
- ekianjo 9y ago
  It still has transaction costs.
  - sanswork 9y ago
    So does cash handling.
- mattnewton 9y ago
  Doesn't mean they like the arrangement and are going to shill for the credit card companies though. That was my point.
  - creepydata 9y ago
    Um... Walmart IS a credit card shill, they have their own credit card - https://www.walmart.com/cp/walmart-credit-card/632402 https://www.walmart.com/cp/walmart-credit-card/632402 We don't know Walmart's feelings, they may like the arrangement. Business go cash free for all kinds of reasons. Customers that use credit spend more money than cash customers. Walmart probably isn't one of those places that benefit as much as a pub but they may have a small credit spending boost that covers the fees. Walmart is a really smart and data driven company and I'm sure they've weighed their options about what is effective business practices for them.
    - mattnewton 9y ago
      A walmart branded card gives them money back though, I see it more as a way to slow the bleeding on transaction fees they are going to have to pay no matter what. See my cousin comment on the whole "CurrentC"[0] debacle for where I am coming from on this. Walmart has a long history of sueing the credit card companies over their rates and had tried to make a competitor. [0] http://time.com/money/3541247/apple-pay-walmart-current-swipe-fee-war/ http://time.com/money/3541247/apple-pay-walmart-current-swip...
- erik 9y ago
  Walmart Canada has stopped accepting Visa due to the fees.
Guest98123 9y ago
I went to a store in my city that just opened a few weeks ago. They advertise as being paperless and cash free, and only accept debit/credit. I think it's the first time I went to a store that refused cash.
- biafra 9y ago
  AFAIK in Germany merchants have an obligation to accept cash. https://de.wikipedia.org/wiki/Bargeld#Rechtsfragen https://de.wikipedia.org/wiki/Bargeld#Rechtsfragen
  - germanier 9y ago
    Only to settle existing debt. If they say "No cash accepted" they could do their business that way (and have no customers). As an extension, gas stations are allowed to refuse large bills if they put out a sign (and the all do).
- creepydata 9y ago
  I don't travel a ton but I have not been on an airplane in the last decade that accepted cash for in-flight purchases. Debit or credit only.
  - uiri 9y ago
    My experience with short regional jumps operated by a subsidiary or third-party under a larger airline brand has been that they do cash-only while the medium- and long-haul flights actually operated by the large airline have been card-only.
- treyfitty 9y ago
  Costco doesn't take cash. Probably the biggest physical retailer that doesn't.
ac29 9y ago
There is no way Walmart pays 3% when a small business with minimal documentation can pay less via Square, PayPal, etc... And as mentioned elsewhere, cash has a cost as well (theft, miscounting change, counting in and out cash drawers during shift changes, arranging daily deposits, trips to the bank, etc). As someone who worked retail 10+ years ago, I can assure you all these things happened, and probably added 2-3% to costs vs electronic payments.
- mattnewton 9y ago
  3% is probably inaccurate, it may be 2% with a cap of 21 cents or something like it, I don't know the average percentage. I do know it is upsetting enough to Walmart to sue for 5.9 billion in 2014[1] and join a class action lawsuit for 3 billion in 2003[2], to go in on a electronic mobile payments processor with rivals target and stores rite aid and cvs[3]. I got all this perspective following the news that Walmart would not back Apple Pay because it was holding out for it's own system [4] with lower fees called "CurrentC" (that I think died? I haven't heard about it since). That last article quotes it at up to 3% but most say 2%, so I am assuming there is a percentage and a fixed cost, and possibly a cap. In any case Walmart had a long history of being very unhappy with the relationship. [1] http://mobile.reuters.com/article/idUSBREA2Q2BJ20140327 http://mobile.reuters.com/article/idUSBREA2Q2BJ20140327 [2] https://mobile.nytimes.com/2003/06/06/business/merchants-may-get-lump-sum-payout-in-debit-card-suit.html https://mobile.nytimes.com/2003/06/06/business/merchants-may... [3] http://www.computerworld.com/article/2839144/heres-why-rite-aid-and-cvs-turned-off-apple-pay.html http://www.computerworld.com/article/2839144/heres-why-rite-... [4] http://time.com/money/3541247/apple-pay-walmart-current-swipe-fee-war/ http://time.com/money/3541247/apple-pay-walmart-current-swip...

creepydata 9y ago

Walmart wouldn't take credit if it wasn't financially sound for them to do so.

ekianjo 9y ago
It still has transaction costs.
- sanswork 9y ago
  So does cash handling.
mattnewton 9y ago
Doesn't mean they like the arrangement and are going to shill for the credit card companies though. That was my point.
- creepydata 9y ago
  Um... Walmart IS a credit card shill, they have their own credit card - https://www.walmart.com/cp/walmart-credit-card/632402 https://www.walmart.com/cp/walmart-credit-card/632402 We don't know Walmart's feelings, they may like the arrangement. Business go cash free for all kinds of reasons. Customers that use credit spend more money than cash customers. Walmart probably isn't one of those places that benefit as much as a pub but they may have a small credit spending boost that covers the fees. Walmart is a really smart and data driven company and I'm sure they've weighed their options about what is effective business practices for them.
  - mattnewton 9y ago
    A walmart branded card gives them money back though, I see it more as a way to slow the bleeding on transaction fees they are going to have to pay no matter what. See my cousin comment on the whole "CurrentC"[0] debacle for where I am coming from on this. Walmart has a long history of sueing the credit card companies over their rates and had tried to make a competitor. [0] http://time.com/money/3541247/apple-pay-walmart-current-swipe-fee-war/ http://time.com/money/3541247/apple-pay-walmart-current-swip...
erik 9y ago
Walmart Canada has stopped accepting Visa due to the fees.

Guest98123 9y ago

I went to a store in my city that just opened a few weeks ago. They advertise as being paperless and cash free, and only accept debit/credit. I think it's the first time I went to a store that refused cash.

biafra 9y ago
AFAIK in Germany merchants have an obligation to accept cash. https://de.wikipedia.org/wiki/Bargeld#Rechtsfragen https://de.wikipedia.org/wiki/Bargeld#Rechtsfragen
- germanier 9y ago
  Only to settle existing debt. If they say "No cash accepted" they could do their business that way (and have no customers). As an extension, gas stations are allowed to refuse large bills if they put out a sign (and the all do).
creepydata 9y ago
I don't travel a ton but I have not been on an airplane in the last decade that accepted cash for in-flight purchases. Debit or credit only.
- uiri 9y ago
  My experience with short regional jumps operated by a subsidiary or third-party under a larger airline brand has been that they do cash-only while the medium- and long-haul flights actually operated by the large airline have been card-only.
treyfitty 9y ago
Costco doesn't take cash. Probably the biggest physical retailer that doesn't.

ac29 9y ago

There is no way Walmart pays 3% when a small business with minimal documentation can pay less via Square, PayPal, etc... And as mentioned elsewhere, cash has a cost as well (theft, miscounting change, counting in and out cash drawers during shift changes, arranging daily deposits, trips to the bank, etc). As someone who worked retail 10+ years ago, I can assure you all these things happened, and probably added 2-3% to costs vs electronic payments.

mattnewton 9y ago
3% is probably inaccurate, it may be 2% with a cap of 21 cents or something like it, I don't know the average percentage. I do know it is upsetting enough to Walmart to sue for 5.9 billion in 2014[1] and join a class action lawsuit for 3 billion in 2003[2], to go in on a electronic mobile payments processor with rivals target and stores rite aid and cvs[3]. I got all this perspective following the news that Walmart would not back Apple Pay because it was holding out for it's own system [4] with lower fees called "CurrentC" (that I think died? I haven't heard about it since). That last article quotes it at up to 3% but most say 2%, so I am assuming there is a percentage and a fixed cost, and possibly a cap. In any case Walmart had a long history of being very unhappy with the relationship. [1] http://mobile.reuters.com/article/idUSBREA2Q2BJ20140327 http://mobile.reuters.com/article/idUSBREA2Q2BJ20140327 [2] https://mobile.nytimes.com/2003/06/06/business/merchants-may-get-lump-sum-payout-in-debit-card-suit.html https://mobile.nytimes.com/2003/06/06/business/merchants-may... [3] http://www.computerworld.com/article/2839144/heres-why-rite-aid-and-cvs-turned-off-apple-pay.html http://www.computerworld.com/article/2839144/heres-why-rite-... [4] http://time.com/money/3541247/apple-pay-walmart-current-swipe-fee-war/ http://time.com/money/3541247/apple-pay-walmart-current-swip...