Walmart Sues Capital One Over Credit Cards

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Last updated on September 6th, 2023

Walmart is suing Capital One to break its credit card partnership. The retail giant alleges that Capital One is in breach of contract over specific account maintenance requirements to the partnership’s co-branded rewards card – the Walmart Rewards™ Card.

Walmart Sues to End Capital One Partnership

Walmart isn’t happy with Capital One. A report in the Wall Street Journal states that the box-store giant is looking to terminate its relationship with Capital One Financial Corp, with Walmart alleging the bank did not meet service obligations, failed to replace lost cards, and delayed or failed to post some transactions to customers’ accounts promptly.

At the heart of the disagreement is the Capital One® Walmart Rewards™ Card. The cash back card earns an unlimited 5% back at, including grocery deliveries and pickup. That 5% places the card on par with other box store rivals – Costco, BJ’s, and Amazon. With other purchases, the card earns an unlimited 2% back at Walmart stores and at Walmart and Murphy USA Fuel Stations, 2% back on dining and travel, and 1% back on all other purchases. The card features no annual fee.

Capital One Vows to Fight Back

The lawsuit by Walmart is just the latest incident in a running disagreement with Capital One. Previously, the retail brand sought to renegotiate the contract – with Walmart insisting on amending the partnership’s loss-sharing agreement and hoping to include its fintech neobank, ONE Finance, in launching future co-branded cards.

A Capital One representative told the WSJ it would “vigorously protect our contractual rights in court.”. Additionally, the company claimed that Walmart’s lawsuit “is an attempt to renegotiate the economic terms of the partnership it agreed to just a few years ago or end the deal early.” That deal is otherwise expiring in 2026 – although provisions exist for the contract to be extended.

Capital One is one of the largest issuers of retail credit cards in the US. It features co-branded Mastercard credit cards with Cabela’s/Bass Pro Shop, Pottery Barn, William Sonoma, BJ’s, and more.  The bank took over the Walmart credit card portfolio after the retailer in 2019 after Walmart sued to break its agreement with the previous issuer, Synchrony. That lawsuit alleged that Synchrony’s underwriting practices resulted in financial harm and ended a twenty-year relationship.

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Featured image by Walmart

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About: Cory Santos
Cory Santos

Cory is the senior credit card editor at BestCards, specializing in everything credit card-related. He’s worked extensively with credit cards and other personal finance topics, including nearly five years at BestCards. Cory’s extensive knowledge is an essential part of the BestCards experience, helping readers to live their best financial lives with up-to-date insights and comprehensive coverage of all facets of the credit card space, including market trends, rewards guides, credit advice, and comprehensive credit card reviews.

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