We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Visa Inks Deal with Wal-Mart, Lifts Credit Card Ban in Canada
Read MoreHide Full Article
Visa Inc. (V - Free Report) has finally reached an agreement with Wal-Mart Stores, Inc. (WMT - Free Report) , which would allow acceptance of Visa credit cards as a form of payment in all Canadian Wal-Mart stores. The latest move undoubtedly seems to put an end to the lingering tussle over credit card transaction fees between the payment network giant and the retail behemoth.
On Jun 11, 2016, in a surprising announcement, Wal-Mart’s Canadian wing stated that it would stop accepting Visa in all its stores across Canada, citing that Visa charges “unacceptably high” card transaction fees.
Walmart Canada – which pays more than $100 million in fees to accept credit cards as payment options from customers – had then mentioned “Lowering costs such as these (credit card transaction fees) is necessary for us to be able to keep our prices low and continue saving our customers money.”
Meanwhile, on Jun 16, 2016, Visa, in an open letter to cardholders and merchants in Canada, claimed that it offered Walmart “one of the lowest rates of any merchant in Canada” and “they are using their size and scale to give themselves an unfair advantage.” Visa also noted that Walmart is “using their own customers as negotiating leverage by stating that they will no longer accept Visa cards at Walmart stores.”
Walmart Canada commenced its move to drop Visa cards, in mid July 2016, with three stores in Thunder Bay. After the companies failed to agree on an “acceptable fee” for Visa transactions, Walmart stopped accepting Visa credit cards at its 16 stores in Manitoba from Oct 2016.
However, following the latest agreement, Wal-Mart’s customers in Manitoba and Thunder Bay, Ontario, can use their Visa credit cards from Jan 6, 2017.
Visa’s shares have gained 7.8% in a year’s time, underperforming the 11.7% growth for the Zacks categorized Financial Transaction Services industry. Though the company remains well poised for growth on the back of its solid market position and significant opportunities from the secular shift toward electronic payments, some key near-term concerns include high client incentives and weakness in the European economy.
Currently, Visa carries a Zacks Rank #3 (Hold).
Stocks to Consider
E*TRADE Financial Corp. : Over the last 60 days, the Zacks Consensus Estimate for 2016 moved up 2.2% to $1.83 and advanced 7.4% to $1.88 for 2017. The company boasts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Meta Financial Group, Inc. (CASH - Free Report) : Over the last 60 days, the Zacks Consensus Estimate jumped 11.8% for 2016 to $6.62 and 14.7% to $7.80 for 2017. The company sports a Zacks Rank #1.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Visa Inks Deal with Wal-Mart, Lifts Credit Card Ban in Canada
Visa Inc. (V - Free Report) has finally reached an agreement with Wal-Mart Stores, Inc. (WMT - Free Report) , which would allow acceptance of Visa credit cards as a form of payment in all Canadian Wal-Mart stores. The latest move undoubtedly seems to put an end to the lingering tussle over credit card transaction fees between the payment network giant and the retail behemoth.
On Jun 11, 2016, in a surprising announcement, Wal-Mart’s Canadian wing stated that it would stop accepting Visa in all its stores across Canada, citing that Visa charges “unacceptably high” card transaction fees.
Walmart Canada – which pays more than $100 million in fees to accept credit cards as payment options from customers – had then mentioned “Lowering costs such as these (credit card transaction fees) is necessary for us to be able to keep our prices low and continue saving our customers money.”
Meanwhile, on Jun 16, 2016, Visa, in an open letter to cardholders and merchants in Canada, claimed that it offered Walmart “one of the lowest rates of any merchant in Canada” and “they are using their size and scale to give themselves an unfair advantage.” Visa also noted that Walmart is “using their own customers as negotiating leverage by stating that they will no longer accept Visa cards at Walmart stores.”
Walmart Canada commenced its move to drop Visa cards, in mid July 2016, with three stores in Thunder Bay. After the companies failed to agree on an “acceptable fee” for Visa transactions, Walmart stopped accepting Visa credit cards at its 16 stores in Manitoba from Oct 2016.
However, following the latest agreement, Wal-Mart’s customers in Manitoba and Thunder Bay, Ontario, can use their Visa credit cards from Jan 6, 2017.
Visa’s shares have gained 7.8% in a year’s time, underperforming the 11.7% growth for the Zacks categorized Financial Transaction Services industry. Though the company remains well poised for growth on the back of its solid market position and significant opportunities from the secular shift toward electronic payments, some key near-term concerns include high client incentives and weakness in the European economy.
Currently, Visa carries a Zacks Rank #3 (Hold).
Stocks to Consider
E*TRADE Financial Corp. : Over the last 60 days, the Zacks Consensus Estimate for 2016 moved up 2.2% to $1.83 and advanced 7.4% to $1.88 for 2017. The company boasts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Meta Financial Group, Inc. (CASH - Free Report) : Over the last 60 days, the Zacks Consensus Estimate jumped 11.8% for 2016 to $6.62 and 14.7% to $7.80 for 2017. The company sports a Zacks Rank #1.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>