WinCo- Oklahoma City- ending credit card acceptance

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WinCo- Oklahoma City- ending credit card acceptance

Post by storewanderer »

For some reason, WinCo was accepting credit cards in its Oklahoma City, OK area stores only. They announced they will stop accepting credit cards at those stores as of 8/1/2022.

https://okcfox.com/news/local/winco-no- ... upermarket

This isn't the first time WinCo did a test on credit card acceptance at limited store locations and ultimately decided to shelve it.

WinCo is definitely trying to hold prices down and I commend them. For many items I am buying there, I am paying the same prices I've paid for years. There have been a ton of increases there like everywhere else, but it isn't quite as across the board as most other stores.
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Re: WinCo- Oklahoma City- ending credit card acceptance

Post by jamcool »

Not taking credit cards is a reason why Winco hasn’t done much in Phoenix… people here-especially winter tourists-use credit cards to buy groceries.
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Re: WinCo- Oklahoma City- ending credit card acceptance

Post by storewanderer »

jamcool wrote: July 13th, 2022, 12:15 am Not taking credit cards is a reason why Winco hasn’t done much in Phoenix… people here-especially winter tourists-use credit cards to buy groceries.
I wonder if they picked the wrong market for their test market.

There is a chain in OKC called Crest which is not exactly like WinCo but definitely shoots hard on price. Crest accepts credit cards and I always wondered if for some reason WinCo decided in OKC they needed to accept credit cards to be on par with Crest. Now they are in the market and have been there a while and are comfortable not accepting them.

Now that Arco accepts credit cards at most locations, WinCo sure comes off as an oddball not accepting credit cards. If it works for them I say carry on.

A lot of local restaurants are starting to surcharge credit card transactions. You find out with a little notice in the check folio they bring out. I am seeing 3.5-4% surcharges. Visa says this is allowed up to 4% as long as it is disclosed before the card is run. I will not be returning to any of these restaurants who are doing this, their prices already seem high to me. They surcharge even if the card says "debit" (I am pretty sure that isn't allowed... but hard to prove anything) since they run it as a credit card. They hardly pay anything to accept those debit cards run as credit, and there should be no surcharge.

WinCo, on the other hand, I see the value there, so I don't care that they don't accept credit cards. If WinCo is the only place I use my debit card, if something funny happens, I will know exactly where it initiated.
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Re: WinCo- Oklahoma City- ending credit card acceptance

Post by mjhale »

storewanderer wrote: July 13th, 2022, 12:24 am Now that Arco accepts credit cards at most locations, WinCo sure comes off as an oddball not accepting credit cards. If it works for them I say carry on.
WinCo must have enough confidence in their OKC clientele that they will not want credit card acceptance back after they stop. Aldi ended up going the other way as they gained more popularity. They started taking credit cards about 5-6 years ago. I have to wonder what percentage at both WinCo and Aldi of sales were credit vs debit. Especially now, if only taking debit or having a published surcharge for credit, can hold down prices in a meaningful way that might be a competitive advantage to a grocery that might want to go in that direction like WinCo has.
storewanderer wrote: July 13th, 2022, 12:24 am A lot of local restaurants are starting to surcharge credit card transactions. You find out with a little notice in the check folio they bring out. I am seeing 3.5-4% surcharges. Visa says this is allowed up to 4% as long as it is disclosed before the card is run. I will not be returning to any of these restaurants who are doing this, their prices already seem high to me. They surcharge even if the card says "debit" (I am pretty sure that isn't allowed... but hard to prove anything) since they run it as a credit card. They hardly pay anything to accept those debit cards run as credit, and there should be no surcharge.

WinCo, on the other hand, I see the value there, so I don't care that they don't accept credit cards. If WinCo is the only place I use my debit card, if something funny happens, I will know exactly where it initiated.
Maybe more restaurants need to get those mini kiosks for the table where you can pay your bill as well as order additional food, drink refills, etc. With those mini kiosks I can run my card with in it my presence. Less chance of fraud and you know that your selected method - credit or debt - is actually adhered to. Even so restaurants are in a bit of a catch-22 right now. How do you pass along your cost increases (if you do at all) without looking "too expensive"? This is especially true for places that aren't solidly in one price point or another. It seems fast food is getting expensive enough that an inexpensive fast casual is a better deal. As you said, the value and quality has to be there for anyone to be willing to pay the price being asked. I've passed on many restaurants after looking at the menu and saying they want that much for that common item?! We aren't at fill int he blank high end restaurant now are we?
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Re: WinCo- Oklahoma City- ending credit card acceptance

Post by storewanderer »

mjhale wrote: July 13th, 2022, 4:37 pm

WinCo must have enough confidence in their OKC clientele that they will not want credit card acceptance back after they stop. Aldi ended up going the other way as they gained more popularity. They started taking credit cards about 5-6 years ago. I have to wonder what percentage at both WinCo and Aldi of sales were credit vs debit. Especially now, if only taking debit or having a published surcharge for credit, can hold down prices in a meaningful way that might be a competitive advantage to a grocery that might want to go in that direction like WinCo has.


Maybe more restaurants need to get those mini kiosks for the table where you can pay your bill as well as order additional food, drink refills, etc. With those mini kiosks I can run my card with in it my presence. Less chance of fraud and you know that your selected method - credit or debt - is actually adhered to. Even so restaurants are in a bit of a catch-22 right now. How do you pass along your cost increases (if you do at all) without looking "too expensive"? This is especially true for places that aren't solidly in one price point or another. It seems fast food is getting expensive enough that an inexpensive fast casual is a better deal. As you said, the value and quality has to be there for anyone to be willing to pay the price being asked. I've passed on many restaurants after looking at the menu and saying they want that much for that common item?! We aren't at fill int he blank high end restaurant now are we?
I suspect WinCo made a business decision here and decided it just wasn't worth it. If they lose business I am sure they will retract the move (like Kroger did with the Visa Cards at Smiths and FoodsCo- right before a holiday period...). But my guess is customers see enough value in what WinCo's current offer is in the current climate that it won't impact them negatively in any way.
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Re: WinCo- Oklahoma City- ending credit card acceptance

Post by lake52 »

storewanderer wrote: July 13th, 2022, 5:51 pm
mjhale wrote: July 13th, 2022, 4:37 pm

WinCo must have enough confidence in their OKC clientele that they will not want credit card acceptance back after they stop. Aldi ended up going the other way as they gained more popularity. They started taking credit cards about 5-6 years ago. I have to wonder what percentage at both WinCo and Aldi of sales were credit vs debit. Especially now, if only taking debit or having a published surcharge for credit, can hold down prices in a meaningful way that might be a competitive advantage to a grocery that might want to go in that direction like WinCo has.


Maybe more restaurants need to get those mini kiosks for the table where you can pay your bill as well as order additional food, drink refills, etc. With those mini kiosks I can run my card with in it my presence. Less chance of fraud and you know that your selected method - credit or debt - is actually adhered to. Even so restaurants are in a bit of a catch-22 right now. How do you pass along your cost increases (if you do at all) without looking "too expensive"? This is especially true for places that aren't solidly in one price point or another. It seems fast food is getting expensive enough that an inexpensive fast casual is a better deal. As you said, the value and quality has to be there for anyone to be willing to pay the price being asked. I've passed on many restaurants after looking at the menu and saying they want that much for that common item?! We aren't at fill int he blank high end restaurant now are we?
I suspect WinCo made a business decision here and decided it just wasn't worth it. If they lose business I am sure they will retract the move (like Kroger did with the Visa Cards at Smiths and FoodsCo- right before a holiday period...). But my guess is customers see enough value in what WinCo's current offer is in the current climate that it won't impact them negatively in any way.
I’d also suspect that Winco has no interest in ever accepting credit cards in their core markets (The W.I.N.C.O. ones). Their stores are already very high volume, no point in taking an unnecessary 3% cut on profits.

The cost to run a credit card program exclusively in their smaller markets where they aren’t doing as well probably outweighed the few customers they gained by accepting them.

I’d also imagine less than expected success in OK and TX has nothing to do with not accepting credit cards and more to do with there being more discounter competition and less consumer focus on perimeter freshness and value (which is where Winco really excels).
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Re: WinCo- Oklahoma City- ending credit card acceptance

Post by Bakeragr »

I think them not accepting credit cards is a good show to their customers that they are trying to keep prices down. As a longtime Aldi shopper, I wish they did not accept credit cards, because I know that they're passing that expense along to me in the form of slightly higher prices. Since they accept them, I'm going to use them for my rewards, however. I was shocked that they started taking credit cards here a few years ago.
To not accept credit cards shows me that you're truly committed to keeping your prices as low as possible.
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Re: WinCo- Oklahoma City- ending credit card acceptance

Post by Super S »

WinCo was late in accepting debit cards for many of the same reasons. If I remember correctly, the Longview, WA store, when it opened, was among the first that accepted them.

I sometimes wonder if they might end up doing what Costco does in accepting only one credit card in their stores. (Costco does take others for online orders)

There are several smaller local businesses that accept Visa/Mastercard only. Some also take Discover, but American Express is still one that many businesses do not accept due to high processing fees. For this reason alone I do not carry an American Express card.
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Re: WinCo- Oklahoma City- ending credit card acceptance

Post by storewanderer »

Super S wrote: July 14th, 2022, 8:47 am WinCo was late in accepting debit cards for many of the same reasons. If I remember correctly, the Longview, WA store, when it opened, was among the first that accepted them.

I sometimes wonder if they might end up doing what Costco does in accepting only one credit card in their stores.
I think the biggest difference is Costco negotiates with a single credit card vendor into a deal that is "good for Costco." Basically Costco pays little-nothing to accept Visa cards (and only Visa cards). In some other countries they are tied up with exclusive with different card issuers.

The card issuers love having access to Costco's customers since Costco's customers tend to be heavy spenders so they will fight for them. It also tends to be very easy to approve Costco's customers for credit cards based on their income levels/demographics.

I am just not sure the card issuers are going to be fighting over WinCo's customers as I don't want this to come out the wrong way as I shop there, but I don't think the typical WinCo customer is a big spender. Also WinCo going exclusive with a credit card may cause WinCo to start pushing credit card sign ups, etc. (this is typically a requirement the card issuer places on the store offering the card as a condition of the card agreement) which also would waste everyone's time and be something that may cause an image decline for WinCo especially if a lot of people try to apply for a credit card then don't get approved and take it out on the store.
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Re: WinCo- Oklahoma City- ending credit card acceptance

Post by Brian Lutz »

storewanderer wrote: July 19th, 2022, 9:59 pm I am just not sure the card issuers are going to be fighting over WinCo's customers as I don't want this to come out the wrong way as I shop there, but I don't think the typical WinCo customer is a big spender. Also WinCo going exclusive with a credit card may cause WinCo to start pushing credit card sign ups, etc. (this is typically a requirement the card issuer places on the store offering the card as a condition of the card agreement) which also would waste everyone's time and be something that may cause an image decline for WinCo especially if a lot of people try to apply for a credit card then don't get approved and take it out on the store.
Based on what I've seen at Winco around here it seems like a lot of the shoppers there tend to be the types that shop less often, but buy more stuff at once. I was just there a few days ago, and there seemed to be quite a few people in the checkout lines with two carts worth of groceries, spending over $300 in a single trip. It's also common to see people buying large quantities of a single item there as well (I suppose it's possible they could be buying to resell but it seems like there would be wholesale sources for that.)
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