Wal-Mart, Mastercard in Debit Card Deal

LITTLE ROCK, Ark. (AP) _ Wal-Mart customers can use Mastercard signature debit cards to make purchases for the first time since February when the world's largest retailer suspended their usage in a

Monday, June 21st 2004, 1:08 pm

By: News On 6

LITTLE ROCK, Ark. (AP) _ Wal-Mart customers can use Mastercard signature debit cards to make purchases for the first time since February when the world's largest retailer suspended their usage in a disagreement over fees charged to merchants.

Wal-Mart Stores Inc. made the renewal announcement Monday, saying it would resume their use immediately.

Wal-Mart, based in Bentonville, Ark., said in December that Mastercard's fees were too high. The move made Wal-Mart the first major retailer to take such action since a lawsuit settlement freed merchants to pick which credit and debit card services to use.

Wal-Mart spokeswoman Melissa Berryhill wouldn't confirm Monday if Mastercard had lowered its rates to win back Wal-Mart's business.

``I can't disclose the terms of the agreement,'' Berryhill said. ``We worked with Mastercard to reach an agreement that enabled us to offer an additional customer payment.''

Mastercard International spokeswoman Barbara Coleman also said Monday that the company would not discuss any specifics of the agreement.

Wal-Mart will continue to accept all other forms of Mastercard payment, including credit, personal identification number debit and corporate cards, the company said.

In December, Berryhill said that fewer than 1 percent of Wal-Mart transactions are made using the signature cards. Wal-Mart continued to do business with Visa after dropping Mastercard in February.

Wal-Mart was a lead plaintiff in a lawsuit against Mastercard and Visa. The settlement stipulated that merchants don't have to accept debit cards if they accept Visa or MasterCard charge cards. The antitrust settlement would pay more than $3 billion to thousands of U.S. retailers over the coming 10 years.

Both Wal-Mart and Mastercard officials said the renewed agreement gives their customers more choices when shopping.