Re:Credit-Card Backlash Mounts as Kroger Weighs Expanding Vi...
by Johnny555 on Wednesday August 01, 2018 @12:47AM
(#17659770)
I like my rewards Visa...
That's why Kroger is willing to turn you away -- they don't want to pay for your rewards.
In a business where profit margins can be a thin 1 - 2%, losing some customers that cost a 3% transaction fee while driving others to cheaper transactions can be a net win despite losing business.
Though I suspect that Visa will blink first before other retailers decide to do the same.
That's why Kroger is willing to turn you away -- they don't want to pay for your rewards.
In a business where profit margins can be a thin 1 - 2%, losing some customers that cost a 3% transaction fee while driving others to cheaper transactions can be a net win despite losing business.
Though I suspect that Visa will blink first before other retailers decide to do the same.