Walmart has ended its partnership with Capital One that made the banking company the exclusive issuer of Walmart’s consumer credit cards.
The companies announced the change in a Joint statement Friday.
Cardholders can still use their Capital One Walmart Rewards cards, which will continue to accrue rewards unless customers are notified of the change, the companies said. Capital One will retain ownership and servicing of the credit card accounts.
Bentonville, Arkansas-based Walmart partnered with Capital One in 2019 after ending its previous credit card deal with Synchrony Financial. The rewards card was co-branded and offered rewards such as cash back on in-store purchases and online orders selected for pickup or delivery, according to Program website. The deal was scheduled to run until 2026.
But Walmart eventually soured on Capital One. In 2023, Walmart sued Virginia-based McLeanSaying it wanted to terminate the agreement because Capital One was taking too long to process payments and mail replacement cards. The suit also said Capital One “admitted” that it failed to meet some of Walmart’s service standards. Capital One said service issues did not constitute a reason to terminate the partnership, and said Walmart was trying to “terminate the deal early.”
A federal judge ruled in Walmart’s favor in March.
In a government filing on Friday, Capital One said there are approximately $8.5 billion in loans in Walmart’s existing credit card portfolio.
It’s not yet clear when Walmart might hire a new banking partner. The Associated Press sent an email seeking comment to Walmart on Saturday.
