Wal-Mart drops MasterCard signature debit cards

Wal-Mart drops MasterCard signature debit cards

Wal-Mart will stop accepting MasterCard signature debit cards as of 1 February 2004, citing higher transaction fees compared to other cards.

In April this year MasterCard was forced into an out-of-court settlement with a group of US retailers - led by Wal-Mart - who complained about excessive fees for signature-based debit card payments.

As a result of the merchants' lawsuit settlement, MasterCard can no longer require retailers to accept its signature debit card as a condition of accepting its credit card.

Wal-Mart says the move only affects debit cards that require a signature, although customers will still be able to use these card's through PIN-based networks such as Star, ACCEL, Nyce and AFFN. The retailer will continue to accept MasterCard credit cards.

Mike Cook, Wal-Mart's vice president and assistant treasurer, says: "The fees charged by MasterCard for its signature debit are simply too high, which led us to eliminate this payment option rather than pass these costs on to our customers."

Comments: (0)