Capital One and Walmart terminate exclusive credit card agreement

Capital One will no longer be the exclusive issuer of Walmart consumer credit cards.

The two companies announced the termination of the agreement in a joint press release on Friday (May 24).

They launched the Capital One Walmart Rewards Credit Card program in 2019, according to a press release.

“While Capital One and Walmart are ending their credit card partnership, nothing changes today for cardholders — cardholders can continue to earn and redeem rewards as previously,” the companies said in a press release. Accumulated rewards will retain their value.

“Until further notice, cardholders can also continue to use the Capital One Walmart Rewards Card where Mastercard is accepted and use the Walmart Rewards Card when shopping at Walmart,” they added.

Capital One will retain ownership and servicing of the credit card accounts, according to the release.

This comes after a federal judge ruled in March that Walmart could end its credit card partnership with Capital One early because the bank did not provide the level of service required by the two companies' 2018 agreement.

The judge ruled that “repeated customer service failures” prompted Walmart to terminate the relationship.

At the time of the ruling, a Capital One spokesperson provided PYMNTS with an emailed statement saying, “We disagree with the court's ruling and we are evaluating our appeal rights.”

Walmart sued Capital One in April 2023, seeking to terminate the credit card partnership and accusing the bank of failing to adhere to its customer service standards.

“Unfortunately, Capital One has consistently failed to meet its contractually required customer service standards,” Walmart's attorneys said in the lawsuit.

The lawsuit alleges that the bank failed to meet standards in a number of “critical” customer service categories, such as failing to post transaction information to cardholders' accounts in a timely manner and failing to deliver replacement cards within five days.

At the time the lawsuit was filed, a Capital One spokesperson reached out to PYMNTS and described the lawsuit as an attempt by Walmart to renegotiate its existing partnership or end the deal early.

“Capital One resolved these minor service issues in accordance with the terms of the agreement with no harm to customers, the program or Walmart,” the spokesperson said.

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