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Foods Co to stop accepting Visa credit cards

Kroger Co. grocery chain says rates and fees are too high

Russell Redman

July 30, 2018

2 Min Read
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Next month, The Kroger Co.’s Foods Co supermarkets plan to drop Visa credit cards as a form of payment.

The Los Angeles-based grocery chain said Monday that as of Aug. 14 it will no longer accept Visa credit cards. Visa debit cards, however, can still be used to pay for purchases.

Foods Co called Visa’s interchange rates and network fees “among the highest of any credit-card brand” and said the move to stop accepting the cards will enable the grocery retailer to pass along savings to customers as everyday low prices on key items.

Part of Kroger’s Foods 4 Less subsidiary, Foods Co. Foods Co. operates 21 stores and five fuel centers in central and northern California.

“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,” Foods Co President Bryan Kaltenbach said in a statement. “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.”

Foods Co noted that its stores and fuel centers will continue to accept other forms of payment for grocery and gas purchases, including all debit cards; cash and checks; SNAP; and MasterCard, American Express and Discover credit cards.

“We realize this will be a change for some customers,” added 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 credit card acceptance will be eliminated at six Foods Co stores in the San Francisco Bay area, four stores in the Sacramento Valley area, and seven Foods Co stores serving the Central Valley. The stores are located in Bakersfield, Fresno, Hanford, Lompoc, Oakland, Pittsburg, Richmond, Sacramento, Salinas, San Francisco, Santa Maria, Soledad and Tulare, Calif.

In a statement, a Visa spokesman said that “Visa is disappointed at Kroger’s decision to stop accepting Visa credit cards at its Foods Co. stores. 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.”

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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