Kroger may be the nation’s largest grocery chain but if it goes through with its plan to start charging customers to use credit cards, the popular company may soon face turmoil.
According to the New York Times, Kroger is seriously considering charging consumers an extra fee to pay via credit card. The plan is technically allowed under a new settlement between Visa and MasterCard with retailers. The agreement states that stores would be granted the right to charge a swipe fee when consumers are using their credit cards. American Express and Discover Cards are not part of the settlement and would not carry any additional fees under the plan. Debit cards are also not part of the settlement.
In addition to charging credit card users, Kroger executives are “exploring the possibility of giving cash users a discount at the register.” They’ve also considered “posting two prices for everything – one being the cash price, the other the credit card price.”
Needless to say, the news has many loyal Kroger customers up in arms. The service fee is expected to be 2 percent, which means an additional $2 on every $100 grocery bill.
Other popular companies like Darden Restaurants (parent company of Red Lobster and The Olive Garden) have made it very clear that they do not plan on charging their customers more for using credit cards. They’ve indicated that most of their consumers pay via credit card and they don’t want to potentially lose their customers over the fees.
Do you think companies should start charging a swipe fee for using credit cards?