Kroger, Wall Street Journal, Anna discussed on WSJ Your Money Briefing
Well, you know, it puts everybody in a really tough situation because the merchants don't want to reduce the foot traffic or transactions. The banks, of course, don't want to ease up on the feast. Coming in in. Nobody wants to upset the consumer. It is a difficult situation and you know the two sides have their own sort of version two like why. What they are fighting for is the right thing. And they're, I mean as a reporter reporting on its, I can't say there's one right or one wrong side here. I mean, chances are that, yes, merchants are benefiting from cards sense at how many people shop with cards and spending more will. Yeah, I suppose if there's anybody who's not benefiting if you consider the fees of escalated over time, it's businesses with a lower margin as you pointed out in your story, like grocers, right. So we have seen in one example, a very recent example grocer take a pretty drastic step. So this summer Kroger announced that one. One of its subsidiaries supermarket in in California Foods Co. decided that it was not going to accept visa credit cards anymore. It would take a debit, but not visa credit and had a conversation with Kroger's with with with singer executive there. And he said that one of the big factors to making this decision will first of all, Kroger and visa have been trying to negotiate inserts BB's fees, interchange fees. They were trying that the be the supermarket chain was trying to bring those costs down and they're senior executive said that, you know what we have not been able to come to an agreement fine. But in addition to that, he pointed out that the growth of rewards cards, the fact that these cards are being used that are stores more often has become an issue as well because these cards are more expensive. So there are sort of different steps that that that merchants in the past have taken the currently. Taking that includes litigation that includes, you know what? I'm just going to cut off visa credit and let me see how my business is going to perform without that while say, something's gotta give, and we'll see what happens. And it's a good reason to stay tuned to the Wall Street Journal wsj.com and reporting by Anna, Maria Andreatta's who joins us here in our studio, Anna, Maria. Thanks for being here. Thank you. And that's your money. Briefing im JR Waylon in New York for the Wall Street Journal..