Walmart, Capital One end exclusive consumer credit card agreement

Capital One and Walmart announced Friday that they had terminated an agreement that positioned Capital One as the exclusive issuer of Walmart’s debt. Consumer Credit Cards.

Walmart and Capital One began working together in 2018 after the retail giant ended its 20-year partnership with Synchrony Financial. Capital One began issuing Walmart-branded credit cards in 2019.

“meanwhile Capital One and Walmart “Although the company has ended its card partnership, nothing changes for cardholders at this time. Cardholders will continue to earn and redeem rewards, and any rewards previously earned will retain their value,” the press release stated.

“Until further notice, cardholders can continue to use their Capital One Walmart Rewards Card wherever MasterCard is accepted and their Walmart Rewards Card for purchases at Walmart,” the statement continued.

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Capital One and Walmart launched their credit card partnership in 2019. (Photo by Yichuan Cao/NurPhoto via Getty Images)

The announcement added that Capital One will retain ownership and servicing of the credit card accounts and will provide more information to Walmart credit cardholders in the coming months. Its existing credit card portfolio is valued at approximately $8.5 billion. Consumer Loans.

Ticker safety last change change %
WMT Walmart Inc. 65.38 +0.54 +0.83%
Corfu Capital One Financial Co., Ltd. 137.62 +0.13 +0.09%

The partnership began to unravel as disputes emerged after Walmart accused Capital One of being too slow to update transactions on cardholders’ accounts and of not quickly replacing lost credit cards in late 2022 and early 2023. These disputes ultimately It sparked a lawsuit April 2023.

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Shopping carts outside a Walmart store

Walmart is currently the largest retailer in the United States and the world. (David Paul Morris/Bloomberg via Getty Images/Getty Images)

In March 2024, a federal court ruled that Walmart could end its partnership with Capital One earlier than contractually obligated because Capital One failed to provide the required level of customer service.

Capital One said at the time that it disagreed with the decision and was considering appealing it.

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Capital One Bank Branch

Capital One will maintain its credit card portfolio and customers will still have access to Walmart rewards cards. (Photographer: Yuki Iwamura/Bloomberg via Getty Images/Getty Images)

In a statement provided to Reuters, a Capital One spokesman said the companies “determined that the best path forward for customers is to terminate our current partnership and switch existing eligible Walmart Card customers to Capital One’s flagship branded rewards product.”

Earlier this year, Capital One Acquires credit card issuer Discover The financial services division agreed to a $35.3 billion all-stock acquisition aimed at creating a global payments giant.

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The proposed merger is under intense scrutiny from the Biden administration, with the Justice Department and the Consumer Financial Protection Bureau signaling they will evaluate the deal’s suitability. Impact on consumers.

Reuters contributed to this report.