What’s the Future of Walmart’s Credit Card After Capital One Break Up?

You may have noticed that Walmart and Capital One are back in the news regarding their co-branded rewards credit card.

This time it was the revelation that the companies have settled a lawsuit over their soured partnership on the Capital One Walmart Rewards® Card.

Neither company commented on the terms or the path forward following the settlement. There are questions to be answered, though. New customers can’t sign up for the card and existing customers are wondering if they should make a move.

If you’re behind on this drama, here’s a “quick catch-up” on how things got here:

• September 2019: The Capital One Walmart Rewards® Card launched.
• April 2023: Walmart sued Capital One over its handling of the credit card partnership. Per reports, Walmart said the bank was “too slow to post transactions to cardholder accounts, and failed to replace lost cards promptly.”
• May 2024: Walmart and Capital One announced the end of their credit card partnership. Capital One announced that it will “retain ownership and servicing” of the credit card accounts generated during the partnership. It promised that “additional information will be provided in the coming months to Walmart credit card holders.”
• June 2024: The two sides announced they have reached a settlement for the lawsuit. Capital One no longer appears to be accepting new applicants for the card via their website.

So, with the relationship appearing to be nearing the end of its road, it’s fair to wonder: What’s next?

Let’s talk through it.

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What Should Walmart Shoppers Do in the Meantime?

It’s clear that we’re in a “transition” period for Walmart as it relates to its co-branded credit card. There may be a new one coming, but we don’t know when, from who, or what the details might look like.

And if you’re a regular Walmart shopper who wants to maximize credit card rewards, you’re likely still spending money there and wondering what this breakup means for the future of earning rewards at the store.

After all, the existing credit card is one of the best shopping rewards cards for customers who use the Walmart app. You can earn 5% back on your purchases via the Walmart website or app for pickup or delivery purchases!

The short-term solution differs based on whether you have the Capital One credit card or not.

If You Have the Capital One Walmart Rewards® Card:

When Capital One and Walmart announced they were parting ways in May 2024, Capital One issued the following statement to existing cardholders:

“While Capital One and Walmart have ended their card partnership, nothing changes today for cardholders – cardholders can continue to earn and redeem rewards, and previously accrued rewards will retain their value. Until informed otherwise, cardholders can also continue to use their Capital One Walmart Rewards® Card wherever Mastercard is accepted and the Walmart Rewards® Card for purchases at Walmart.”

Our suggestion is to keep earning the rewards as long as they’ll allow you.

You already have the card, so you may as well continue to enjoy the opportunity to continue compiling up to 5% back on your purchases. But, do so with the understanding that they may change the terms on your card at any time.

And remember: You don’t want to unnecessarily close the card account prematurely, as it could impact your credit score based on length of credit and credit utilization metrics.

If You Don’t Already Have the Capital One Version of the Walmart Card:

It appears that Capital One is no longer accepting new applications for the card on its website.

So, while existing customers can still earn their rewards, you’ll need to come up with a different way to get rewards on spending at the world’s largest retailer.

One easy solution is to use a 2% cash back credit card with no annual fee. Money expert Clark Howard typically recommends signing up for one of these cards as your first cash back credit card.

Doing so will ensure that you not only get an effective 2% discount at Walmart, but also on every other purchase you make.

If you already have one of these cards and are looking to beat the 2% back you can get, you might benefit from playing the “waiting game” on Walmart.

There’s a strong chance that we’ll eventually see a new rewards credit card from them. And there’s a possibility that it could offer a chance to beat 2% back in earnings via Walmart Pay, the Walmart app, Walmart.com and maybe even on in-store purchases.

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Are you disappointed by the end of this partnership? Or are you hoping for a bigger and better rewards card to come? We’d love to hear your thoughts in the Clark.com community.