Kroger bans Visa cards

[FrankiesGirl]

I stopped shopping at Kroger in the last couple of months. I do 90% at Aldi anyway, but the last time I went to a Kroger, they had a really stupid "sale" that was restricted to only 4 items allowed per household (have to swipe your Kroger card to even get the sale, then locked out any further use of that particular Kroger card for the rest of the day). And buying said item off sale was insanely priced (like almost double what the normal pricing was usually). WTF Kroger? Either offer an item for sale or don't, but you start making me jump through hoops to save a measly dollar, I'll go some place else.



And I use a cash back Visa for all my grocery shopping, so double done with them if they started that in my area.

 

[Walt34]

Does anyone recall the time in the past when no grocery stores, absolutely none, accepted credit cards? I remember that they certainly did not in the 1980's, and perhaps the 1990's.

I didn't really notice since it is only in the past three or four years that I stopped writing checks at the grocery stores and started using credit cards.

From a very early age (in my mid teens) I had a high aversion to using cc because I'd seen my parents (well, mostly my father) get into trouble with them. For decades I had one cc from Sears and later a credit union Visa that I initially got just to establish a credit rating and rarely actually used.

 

[audreyh1]

I get only 3% on my Amex Blue Cash but no annual fee.

For that extra 3% to be worth the $95 annual fee, you would need to spend over $3,166.

Also use Chase Freedom, which will always have one quarter during the year of offering 5x points, redeemable towards cash or transferring to airlines if you have a premium Chase card.


I've never shopped Krogers. But Whole Foods, Trader Joe's, Safeways and Lucky supermarkets all have NFC or Apple Pay in the Bay Area.

We spend a lot on groceries. Even beyond what we buy from Costco.

We shop Krogers when visiting my Dad. That is the best grocery store in the area and also has the best gas prices and points that reduce gas prices.

 

[Choices]

My very expensive periodontist will not take my Discover, so it is the Visa or a check.

 

[omni550]

Does anyone recall the time in the past when no grocery stores, absolutely none, accepted credit cards? I remember that they certainly did not in the 1980's, and perhaps the 1990's.

I recall shopping at a large locally-owned store that was similar to a Walmart today with groceries, clothing, hardware, paint, etc. (Acme-Click in Akron) in the 70s and 80s. If you were buying non-groceries, you could charge your purchase, but for groceries you either had to pay cash or write a check.

(Remember standing behind a slow check-writer, who would only start filling out their check after the clerk had rung up the total?)

omni

 

[explanade]

I try to avoid writing checks at all costs. I used to get annoyed when someone was pulling out a checkbook at the grocery checkout line. Now I don't see that happen any more.

I'm not sure where my checkbook is right now.

Lot of sites will take e-checks, which is just an ACH transfer.

I suppose I could use my debit or ATM card too but have only used that to draw cash.

 

[Jerry1]

I believe that’s a violation of their merchant agreement with Visa.

I certainly was a violation of my user agreement. Won’t be using them again. Hope they enjoy losing a good customer over $1.50. I would have just not used my card if I was aware of the policy, but I don’t take well to being scammed. It’s not worth confronting or reporting them over it, but there are two other very good hardware stores within just a mile or two further that now have my business.

 

[MI-Roger]

We had a Home Improvement Contractor tell us three years ago that the Disney Vacation Club Credit Card had a 35% service fee charged to Merchants. I guess those 'free' vacations have to be paid for somehow. He accepted a Disney Card from one customer one time - never again.

But then he lied to us about multiple other items so who knows..........

 

[GrayHare]

Cash-back is another Tragedy of the Commons issue, individuals acting selfishly at the expense of others. As always, eventually something gives.

 

[Walt34]

Cash-back is another Tragedy of the Commons issue, individuals acting selfishly at the expense of others.

I am puzzled - how is it a tragedy of the commons issue?

Many people use cash back and statement credit programs to their advantage, and then pay off the cc's in full every month. If someone else doesn't have the self-discipline to manage their finances properly and pay off the cc monthly then I don't see how that makes those who do selfish.

 

[Bamaman]

Regular Krogers are taking Visa --at least for now. Kroger has a budget grocery chain that is not taking Visa cards. It is that group of stores they are talking about.

 

[mystang52]

Before cash back rebates, I never used a credit card for restaurants or grocery shopping. As part of my budget approach, I didn't want to get a bill for something that I used up by the time the bill came. Then, for convenience I used my debit card. Now, of course, it's throwing away money if I don't use my cashback cards (AMEX Blue Preferred and Chase AARP).

I know that the cost of these rebates are somehow built into the price of goods I buy. But it's not like I can get a discount for paying cash on grocery/restaurant/gasoline purchases.

 

[foxfirev5]

While most of the contractors who work on or around our house accept CC's, they all charge 3% or 4% extra for doing so. Otherwise we really would have raked in the rebates. Same with property taxes - we could use a CC to pay, but the fee would add more than $300.00 to the yearly charge.

I've used my Fido Visa with contractors but only after getting the cash price. I explain to them that to get any money whatsoever up front, as a former contractor myself, I need to be protected by a credit card payment. No fees ever. Maybe it's an honor among thieves thing.

 

[Amethyst]

It sounds sexist, but it was usually women who pulled out the checkbook, while men (and I) used a credit card and fumed at the time we spent standing behind the check-writers. There was a discount beauty supply store (terrific deals, unfortunately long closed) where I would literally be the only woman out of 20 in line who didn't write a check.

I think the check-writers have converted to using debit cards now.

I try to avoid writing checks at all costs. I used to get annoyed when someone was pulling out a checkbook at the grocery checkout line. Now I don't see that happen any more.

I'm not sure where my checkbook is right now.

Lot of sites will take e-checks, which is just an ACH transfer.

I suppose I could use my debit or ATM card too but have only used that to draw cash.

 

[Amethyst]

How is it selfish to take the rebates that the CC companies offer? What would be the benefit, if people refused to take the banks up on their offers?

Decades ago, the local grocery store agreed with a CC company to offer 3% back to buyers who used that card - in the form of vouchers to use at that grocery store. Customers swarmed the deal, and I think we got $80 worth of free groceries before the CC company canceled the deal because it cost too much.

That's why I was surprised when, many years later, we started getting CC incentive offers again. I just didn't think banks could afford it. But as long as they are willing to give me $$ for a bit of my time, I'm there to take it, and will miss it if it goes away.

Cash-back is another Tragedy of the Commons issue, individuals acting selfishly at the expense of others. As always, eventually something gives.

 

[NW-Bound]

Cash-back is another Tragedy of the Commons issue, individuals acting selfishly at the expense of others. As always, eventually something gives.

We use credit cards for convenience. If the card issuer wants to give us cash on top of that, how do we say no?

By the way, the rules regarding disputing fraudulent charges on the cards are different between debit and credit cards. So, my wife who worked in this industry told me to use debit cards sparingly if at all.

Back on Kroger, it is their right to refuse to pay the "swipe fee". And it is the customers' right to not shop there. All this freedom of choice is wonderful stuff.

 

[gerntz]

I thought an extra charge for using a cc was illegal but giving a cash discount vs. using a cc was OK.

 

[gerntz]

Back on Kroger, it is their right to refuse to pay the "swipe fee". And it is the customers' right to not shop there. All this freedom of choice is wonderful stuff.

Yep. Good for everything including insurance of all kinds.

 

[audreyh1]

We use credit cards for convenience. If the card issuer wants to give us cash on top of that, how do we say no?

I think that GrayHare in the past has pointed out that these cash-back cards charge higher transaction fees to the vendor - maybe a percent or two more? That aspect is invisible to us the user.

I guess I tend to buy larger ticket items and fancier dining with my cards, so hopefully it works out for the vendor.

I am conscientious with the small and non-chain stores and restaurants. We often use cash for less expensive totals and meals.

 

[explanade]

There used to be a local TV store which underpriced all the major chains.

In addition, they'd give a few percent discount for cash purchases since they weren't paying a credit card fee.

So on a $1000 purchase, you might save $30-40 more.

Now you don't see that any more. Plus you want the extended warranty protection from using a card.

On a trip to Singapore, I was making a $25 purchase and they said no cards. So I offered them the equivalent of about $1.50 more for them to charge it on my card.

 

[googily]

I always figured that the CC companies were funding the cash back and other rebate goodies on the backs of the people who pay the minimum amounts every month and then have the privilege of also paying 24% interest.

 

[Brat]

Kroger operates as Fred Meyer Stores in the West. If they drop Visa I will shop elsewhere.

 

[mpeirce]

If they drop Visa I will shop elsewhere.

Honestly I can't imagine they would drop accepting Visa across their stores.

I view their current behavior as a bargaining chip with Visa to get the best deal they can. As others have noted, they are in a low margin business with TONS of competition. Tough business to be in.

 

[Chuckanut]

I We have a M/C that rebates 2%, a Visa that rebates 1.5%, and at the moment the Sears M/C has a program going that gives a statement credit of 5% on gas, groceries and restaurants. That money isn't coming from me, I'm sure the CC companies aren't paying it, so that leaves the merchant.

Not quite.

Besides the merchant the other group that pays our rewards are those who pay the high interest rates CCs charge. Cashback rates from 1-6% are peanuts compared to CC rates on the unpaid blance.

 

[Walt34]

I thought an extra charge for using a cc was illegal but giving a cash discount vs. using a cc was OK.

It's not illegal that I know of to charge extra for a cc but it is a violation of the contract between the cc company and the merchant. So nobody is going to jail for it, but the cc company can and will stop accepting that merchant's business. That's why some merchants give a discount for cash.