Walmart Parts Ways with Capital One in Credit Card Partnership Shift

Shoppers Can Still Use Their Cards Despite the Breakup

May 25, 2024 - 13:37
May 25, 2024 - 13:38
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Walmart Parts Ways with Capital One in Credit Card Partnership Shift
Walmart Parts Ways with Capital One in Credit Card Partnership Shift

Walmart recently announced the termination of its partnership with Capital One, marking the end of the banking company's exclusive role as the issuer of Walmart's consumer credit cards.

In a joint statement released on Friday, both Walmart and Capital One confirmed the dissolution of their partnership.

However, customers holding Capital One Walmart Rewards cards can rest assured that their cards remain valid for use. The cards will continue to accumulate rewards as usual, unless otherwise notified. Capital One will maintain ownership and handle the servicing of the credit card accounts.

This move comes after Walmart's collaboration with Capital One since 2019, following the termination of its previous credit card agreement with Synchrony Financial.

Despite the initial partnership, Walmart's satisfaction with Capital One dwindled over time. In 2023, Walmart took legal action against the McLean, Virginia-based company, citing delays in payment processing and card replacement mailouts as primary concerns. A federal court ruling sided with Walmart in March.

According to a government filing by Capital One on Friday, the existing Walmart credit card portfolio holds approximately $8.5 billion in loans.

While Walmart has severed ties with Capital One, the announcement did not specify when a new banking partner might be named.

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