Kroger considering a Visa credit card ban

Bloomberg reports, Kroger Co. is considering expanding a ban on Visa Inc. credit cards imposed by one of its subsidiaries.

The ban could signal a battle between Visa and retailers over the $90 billion swipe fees they pay each year.

Shares of payment companies that include Visa, American Express Co. and Mastercard Inc. dropped on Monday.

Kroger, the largest U.S. supermarket chain said its Food Co. Supermarkets unit in California will stop accepting Visa cards at 21 stores and five fuel centers next month and Kroger spokesperson Chris Hjelm said the parent company might follow the lead.

“It’s pretty clear we need to move down this path, and if we have to expand that beyond Foods Co., we’re prepared to take that step,” Hjelm said.

Kroger’s decision comes after Walmart Inc.’s decision to abandon Synchrony Financial after the two companies couldn’t agree to economic terms.

Though Visa, American Express Co. and Mastercard have performed poorly on Wall Street this week, the networks continue to benefit from a global shift to electronic payments.

This is a developing story and KRDO will bring you updates.