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Kroger, the supermarket chain that has over 2,700+ outlets is considering to expand its ban on Visa credit cards at its Foods Co stores across. California. This means that over 21 supermarkets and 5 gas stations will stop accepting Visa credit cards from August 14th onwards.

This particular decision is aimed towards saving the fees that Kroger has to pay Visa in order to process the payments. Kroger is all set to expand the ban further if they are not able to come to common terms with Visa.

The company’s chief information officer Chris Hjelm says.”We are going to continue to work with Visa to get where we think is good for our customers, good for Kroger and works for Visa.” Retailers pay about $90 billion dollars just as fees for swiping of the cards. According to Kroger, the rates are highest for Visa credit cards.

But, this does not mean that other cards will not be accepted. Kroger will continue to accept all other types of cards including debit cards by Visa, cash, and even check. American Express, MasterCard, as well as the credit cards by Discover will continue to be accepted just as they were.

Visa, on the other hand, is disappointed in the decision and hopes that both parties will be open to discussion so that they can reach an agreement.  VisaNet, which is the global network of Visa’s has processed over 100 billion transactions, the total volume of which amounts to a whopping 6.8 trillion USD.

Only time will tell if this was a smart move on Kroger’s behalf. If other companies start to follow suit then it could create pressure on Visa to consider revising and reducing its chargers. Customers being forced to use other cards than Visa would give the chance to companies such as American Express and Discover card to try and dominate the game.