The Capital One Walmart Rewards Card is a credit card that caters to consumers who do most of their shopping on Walmart.com.
It is one of a handful of rewards credit cards that are partnered with major retailers in an effort to keep customers loyal to one brand in a competitive space. Walmart’s offering is in direct competition with similar cards issued by competitors Amazon and Target.
If you are a consumer who doesn’t have an existing loyalty to one of these brands, choosing between these cards can be a little bit confusing. Team Clark is trying to make that decision easier by breaking down the specifics of the Capital One Walmart Rewards Card.
In this review, we’ll look at the specs and perks of the card, the different tiers of rewards points and how you can redeem those points. We’ll also look at the offerings from Target and Amazon to see how Walmart’s card stacks up.
Table of Contents
- What Is the Capital One Walmart Rewards Card?
- Card Specs and Perks
- Rewards Breakdown
- Ways to Redeem Rewards
- Comparison to Target and Amazon Cards
- Final Thoughts
What Is the Capital One Walmart Rewards Card?
The Capital One Walmart Rewards Card is a Mastercard rewards credit card offering from Capital One. The benefits of this card stem largely from purchases made through retail giant Walmart, with the best perks coming through purchases made on Walmart.com.
With as much as 5% of the purchase price available back to Walmart.com shoppers in the way of rewards that can be redeemed for statement credits, gift cards and travel, the retail giant is competing with Amazon’s Rewards Visa Signature Card and Target’s RedCard to make sure it keeps customers happy.
Capital One Walmart Rewards Card Specs and Perks
- $0 Fraud Liability: If the card is ever lost or stolen, cardholders are covered by a $0 fraud liability program. That means you would not be responsible for the costs of unauthorized purchases made with the card.
- No Annual Fee: This is a solid perk for a card that offers the ability to get money back on purchases. There is no mathematical equation to run to determine if the rewards are actually worth a fee you’re being charged, so that’s nice.
- No Foreign Transaction Fees: Take this card outside the United States without worry of getting dinged on purchases.
- Extended Warranty: Qualified purchases made at Walmart with this card will earn you an extended warranty at no charge.
- Travel Accident Insurance and 24-hour Travel Assistance Services: If your card is lost while traveling, you have a point of contact who can provide an emergency replacement card and potentially a cash advance, if needed.
- Card Lock: Lock and unlock your card in real time using the app. This can help mitigate potential headaches if the card is lost or stolen.
There is no annual fee for using the card, but there are some associated rates and fees beyond the annual percentage rate on purchases.
- Transfer rate and fees: Just as there is no introductory 0% rate on purchases, there also is no introductory rate on balance transfers. If you move a balance over from a different card, it will be subject to a certain APR. Capital One does indicate that promotional transfer rates may be offered, but those will be charged 3% of the amount of each transferred balance that posts to your account. There is no transfer charge on balances that are moved over at the normal transfer rate.
- Cash advances: You may get a cash advance from this credit card, but it will ding you at a top interest rate. They also charge you either $10 or 3% of the amount of each cash advance, whichever is greater, for the convenience.
- Late fees: Up to $39 in late fees may be charged if payments are not made on time.
Rewards Breakdown for Capital One Walmart Rewards Card
Walmart has three rewards tiers for purchases made with this card, spanning from 1% for standard purchases all the way to 5% for purchases made on Walmart.com. It is clear that Walmart is looking to push consumers toward out-of-store purchase decisions with these rewards tiers.
You’ll notice that things like making purchases online, ordering deliveries or selecting curbside pickup for your groceries while shopping on the app are going to be rewarded more than your typical in-store purchase at Walmart.
As I mentioned, the 5% reward bracket is mostly reserved for making purchases with Walmart without actually stepping inside a store to do it. Here are the purchase types that will earn you 5% rewards:
- Walmart app
- Grocery pickup orders at Walmart
- Grocery delivery orders from Walmart
Introductory perk: Cardholders also qualify for 5% rewards on purchases made in-store via Walmart Pay (the company’s phone wallet option) for the first 12 months. After that introductory period, this type of transaction falls back into the 2% category.
There still is some value to be had for more traditional Walmart purchases with this card. Using the card for in-store transactions and Walmart gas purchases will net 2% in rewards. Dining and travel purchases receive the 2% reward perk, as well.
- Walmart in-store purchases
- Walmart gas purchases
- Murphy USA gas purchases
If you are making a purchase that does not fall into one of the categories above, it will fall into the 1% rewards category.
Ways to Redeem Rewards
The rewards for this card are distributed by way of a points system. You receive points based on the rewards level of your purchase. Points can be redeemed for things like statement credits and gift cards.
For example, spending $50 at Walmart.com would qualify you for 250 rewards points based on the 5% rewards level. That point total would then have a cash-out value of $2.50, which is 5% of the total money spent on the original $50 purchase. Walmart has a handy tool for measuring how many points you can earn with purchases here.
When you’re ready, your points balance can be cashed out in a handful of ways:
- Statement Credits: You can apply the points directly to your bill in the form of a statement credit.
- Cover a Purchase Made With Card: These points can be redeemed while making a purchase on Walmart.com.
- Gift Cards: The cash value of the rewards points can be redeemed on a gift card from Walmart or other retailers.
- Travel: The rewards points can be cashed in on travel deals and packages through Capital One.
Rewards points earned on this card do not expire, but unused points are forfeited if the account is closed.
Capital One Walmart Rewards Card vs. Amazon and Target Cards
If you’re looking into a rewards card for one of the nation’s top retailers, you may first want to compare it to the options available from some of its competitors. Amazon and Target are two of Walmart’s top retail rivals, and both offer rewards credit cards of their own.
Let’s take a quick look at each so you can compare them to the Capital One Walmart Rewards Card.
Amazon Rewards Visa Signature Card
The Amazon Rewards Visa Signature Card has reward tiers that are similar to Walmart’s offering. If you’re a Prime member, you can get 5% back on Amazon and Whole Foods purchases (otherwise it is 3%). Restaurants, gas stations and drug stores qualify for 2% rewards. Here’s a look at some perks from Amazon’s card:
- 3% Rewards on purchases at Amazon.com and Whole Foods
- Ability to boost rewards to 5% with an Amazon Prime Membership
- Receive $60 Amazon gift card upon credit card application approval
- No annual fees or foreign transaction fees
You can read Team Clark’s full review of the Amazon Rewards card here.
The Target RedCard gives users 5% rewards on all purchases from Target, both in-store and online. There’s no limitation to that. Here’s a quick look at some of the perks of this card:
- Unlimited 5% rewards in-store at Target and online at Target.com
- Free two-day shipping on items from Target.com
- Additional 30 days on return policy for items purchased with RedCard
It is worth noting that Walmart.com already offers free two-day shipping on many of its products, so the RedCard perk may actually just be catching them up to Walmart in that regard. You can read Team Clark’s full review of the RedCard here.
If you’re into bulk purchasing, money expert Clark Howard is a big fan of Costco and Sam’s Club. He personally carries each of their rewards credit cards in his wallet. Here’s a quick breakdown of why he chose those cards, as well as two others:
Are you considering adding the Capital One Walmart Rewards Card to your credit card portfolio? Let’s review some of the pros and cons of the card before you make your final decision:
Capital One Walmart Rewards Card: Pros and Cons
|5% rewards on Walmart.com||No introductory APR|
|No annual fee||Potentially high interest rates|
|2% rewards on gas and travel||Limited in-store perks|
Bottom Line: Like most rewards credit cards, whether you might want this one likely comes down to where you spend your money. If you’re an online shopper who uses Walmart.com often, the 5% rewards are very attractive. However, it may not be the optimal card if you do most of your shopping at a local store or via Amazon. I’d do some analysis on how many purchases you plan to make that fall in this card’s 5% and 2% rewards categories before deciding if it is the right fit for you.
Do you have experience with the Capital One Walmart Rewards Card? Let us know how you like it in the comments below!