Walmart Canada feels the fees applied to purchases by Visa are too high, the company said in a statement on its website.
"To ensure we are taking care of our customers' best interests and delivering on our promise of saving customers money, we constantly work to reduce our operating costs, including credit card fees. Unfortunately, Visa and Walmart have been unable to agree on an acceptable fee for Visa transactions," Walmart Canada said.
The company pays more than $100 million in fees to accept credit cards every year. By lowering costs such as these, the company is able to keep its prices low and continue to save customers money.
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Separately, TheStreet Ratings has set a "buy" rating and a score of A on Visa stock. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that TheStreet Ratings covers.
The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income and expanding profit margins. TheStreet Ratings feels its strengths outweigh the fact that the company shows weak operating cash flow.
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: V