Capital One and Walmart terminate credit card agreement


Walmart wins lawsuit to terminate March agreement

Published

May 24, 2024




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Katherine Schulte


Capital One CEO Richard Fairbank stands in front of the company's McLean headquarters. Image courtesy of Capital One Financial

Capital One CEO Richard Fairbank stands in front of the company's McLean headquarters. Image courtesy of Capital One Financial

McLean-based Capital One Financial Corp. is no longer the exclusive issuer of Walmart consumer credit cards.

Two Fortune 500 companies announced Friday they were terminating consumer card agreements. The announcement follows issues first discovered in late 2022 and early 2023, according to Reuters.

Capital One became the exclusive U.S. issuer of Walmart's private label and co-branded credit card programs on August 1, 2019, following the banking and retail giant's partnership announcement in 2018. Walmart in the state is ending a nearly year-old credit card program.

In April 2023, Walmart filed a lawsuit with the U.S. District Court for the Southern District of New York, requesting to terminate the partnership. The retailer said the bank failed to provide customers with replacement cards within five days and failed to promptly update transaction and payment information in customers' accounts. A federal judge ruled in March that Walmart can end its credit card partnership with Capital One.

However, cardholders can continue to earn and redeem rewards and, until further notice, can continue to use their Capital One Walmart Rewards Card anywhere Mastercard is accepted, according to the release.

Capital One retains ownership and servicing of the credit card portfolio, which has approximately $8.5 billion in loans, according to Securities and Exchange Commission filings. The company hopes to convert eligible customers to Capital One-branded cards.

The termination of the agreement also terminates the company's revenue sharing and loss sharing agreements.

Capital One is acquiring Discover Financial Services in a $35.3 billion all-stock deal that has come under federal scrutiny.

As of March 31, Capital One and its subsidiaries had $351 billion in deposits and total assets of $481.7 billion. Capital One ranks 106th on Fortune magazine's 2023 Fortune 1000 list and 386th on the 2023 Global 500 list.



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