Wal-Mart (WMT) Stock Down, Sues Visa Over Debit Card Transactions
NEW YORK (TheStreet) -- Shares of Wal-Mart Stores (WMT) - Get Report are dropping by 1.88% to $67.50 in pre-market trading on Wednesday, as the company is suing Visa (V) over how customers verify purchases using their debit cards at checkout, the Wall Street Journal reports.
The Bentonville, AR-based retail giant wants customers to verify their purchases with a PIN number when they use a chip-enabled debit card.
Wal-Mart said Visa has prevented the company from requiring PINs only, which forces it to allow customers to use a signature in those purchases, according to a lawsuit filed in New York state court today, the Journal noted.
The lawsuit is the latest between the two companies, which have sued each other in the past over various payment issues.
It could also fuel the ongoing debate over balance security vs. convenience with the new generation of chip-enabled cards, the Journal added.
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Separately, TheStreet Ratings Team has a "Buy" rating a with a score of B+ on the stock.
The company's strengths can be seen in multiple areas, such as its attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity.
The team believes its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: WMT
