This credit card puts the big-box store in the palm of your hand and rewards you handsomely. But its not for everyone.
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The Walmart credit card has gone through some changes over the past few years. Up until recently Capital One was the exclusive issuer of the Walmart credit card. However in May 2024, Walmart and Capital One announced they were ending their partnership agreement.
A Brief History of the Walmart Credit Card
Walmart first launched a store credit card back in the 1980s For years, the card was issued by GE Capital Retail Bank. Then in 2014,Synchrony Bank took over as the issuer of the Walmart credit card Synchrony issued the Walmart Mastercard as well as the Walmart store card.
In 2019, Walmart signed a partnership agreement with Capital One, making them the new exclusive issuer of all Walmart consumer credit cards. The Capital One Walmart Rewards Card launched later that year.
The Capital One partnership was supposed to last until 2026. However, issues arose and in 2023 Walmart filed a lawsuit against Capital One with plans to terminate the partnership early. A judge ruled in Walmart’s favor in March 2024.
The End of the Capital One Partnership
On May 24, 2024, Walmart and Capital One issued a joint press release announcing the end of their credit card partnership agreement. However, the change does not impact cardholders right away.
The Capital One Walmart Rewards Card will continue to function normally. Cardholders can still earn and redeem rewards. Capital One will maintain ownership of the accounts and service the credit cards.
Essentially, nothing changes immediately for customers with the Capital One Walmart credit card. Walmart stated that additional information will be provided to cardholders in the coming months.
What Happens Next?
With Capital One no longer the issuer, Walmart will need to find a new issuing bank to partner with. Walmart has not yet named who the new issuer will be.
It’s likely Walmart will want to move quickly to establish a new co-branded rewards credit card. However, the process of transitioning from one issuer to another can take time.
Until Walmart announces a new issuing bank, the Capital One Walmart Rewards Card will continue to operate as normal. Cardholders do not need to take any action at this time.
Walmart may decide to return to Synchrony Bank as their partner. Synchrony already issues credit cards for other major retailers like Amazon, Lowe’s, and JCPenney.
What it Means for Walmart Credit Card Users
The breakup between Walmart and Capital One does not have an immediate impact on customers’ credit cards or rewards. In the coming months, cardholders will receive more information about the change.
Here are some key things customers should know:
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Continue using your Capital One Walmart credit card for now. Nothing changes with earning and redeeming rewards.
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Walmart will announce a new card issuer. Until then, accounts stay with Capital One.
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When the transition happens, you’ll likely get a new credit card with the new issuer.
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Your account number may change when Walmart switches banks. Your credit history will remain intact.
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Rates and fees are not likely to change significantly. Read any notices carefully.
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If you have rewards, they should carry over to the new program. However, redemption options could change.
While the issuer is changing, customers can rest assured their Walmart credit card will function normally in both the short and long-term. The new partnership will bring updated features and benefits.
The Bottom Line
As of May 2024, Capital One is no longer the exclusive issuer of the Walmart credit card. Walmart ended the partnership and will be transitioning to a new issuer in the coming months.
Cardholders can continue using their Capital One Walmart Rewards Mastercard with no interruptions to earning and redeeming rewards. Walmart will provide updates as the changeover to a new issuing bank happens. Rest assured, customers can still rely on their Walmart credit card for financing purchases and earning rewards.
» The Capital One® Walmart Rewards™ Mastercard® is no longer available.
In May 2024, Capital One and Walmart announced they were ending their partnership, and later that summer, Capital One closed applications for both the Capital One® Walmart Rewards™ Mastercard® and the closed-loop, store-only Walmart Rewards Card. Existing cardholders were to be transitioned to the Capital One Quicksilver Cash Rewards Credit Card.
Walmart sells virtually every household item you could ever need, from groceries, electronics and cosmetics to party supplies, auto parts and even gas in some cases. The Capital One® Walmart Rewards™ Mastercard® aims to reward you more for those purchases, especially if you skip the maze of aisles in favor of shopping online.
The $0-annual-fee card — which has replaced the previous Walmart co-branded card issued by Synchrony Bank — earns:
- 5% back on Walmart.com and Walmart app purchases, including grocery pickup and delivery.
- 5% back on in-store purchases using Walmart Pay for the first 12 months (2% after that).
- 2% back on in-store purchases (after the introductory 5% back period ends). This includes purchases at Walmart fuel stations.
- 2% back on restaurants and travel.
- 1% back everywhere else.
Those are impressive rates for a store-branded card. But is it right for you? Heres how to figure that out.
Why you might want the Capital One® Walmart Rewards™ Mastercard®
Store cards are the most rewarding when much of your budget is dedicated to that particular retailer. If Walmart is your source for both regular purchases (food, clothing, toiletries) and bigger buys (televisions, patio furniture, above-ground swimming pools), the Capital One® Walmart Rewards™ Mastercard® becomes a more compelling option. When it comes to rewards cards, earning more points where you spend the most is the sweet spot.
NEWS: Walmart Credit Card Coming Back! With Synchrony Bank & OnePay
FAQ
Who is the creditor for a Walmart credit card?
OnePay will begin offering the cards in the US later this year. Synchrony issued the Walmart credit card for nearly two decades until 2018, when it lost the partnership to Capital One Financial Corp.
Who is taking over the Walmart credit card?
Walmart’s One will relaunch credit card program, solidifying the retailer as a major payments player. The news: Walmart’s majority-owned fintech, One, will take over the retailer’s dual co-brand and private label portfolio when it relaunches next year, per Bloomberg.
What credit score do you need for a Walmart card?
Why is Capital One no longer with Walmart?
It didn’t work out. Things started to fall apart in 2023 when Capital One violated terms in its contract that dictated certain customer service requirements, including how long it would take to post charges to a minimum percentage of cards.