Walmart has ended its partnership with Capital One, which had made the banking company the exclusive issuer of Walmart’s consumer credit cards.
The companies announced this change in a joint statement on Friday.
They confirmed that cardholders can still use their Capital One Walmart Rewards cards, which will continue to accrue rewards unless customers are notified of any changes.
Capital One will maintain ownership and servicing of the credit card accounts.
Walmart, based in Bentonville, Arkansas, partnered with Capital One in 2019 after ending its previous credit card deal with Synchrony Financial.
The co-branded rewards card offered benefits like cash back on in-store purchases and online orders set for pickup or delivery, according to the program’s website. The deal was originally set to run through 2026.
However, Walmart eventually became dissatisfied with Capital One. In 2023, Walmart sued the McLean, Virginia-based company, claiming it wanted to terminate the agreement because Capital One was taking too long to process payments and mail replacement cards.
The lawsuit also stated that Capital One “admitted” it had failed to meet some of Walmart’s service standards.
Capital One countered that the service issues did not constitute grounds for ending the partnership and accused Walmart of attempting to “end the deal early.”
A federal judge ruled in Walmart’s favor in March.
In a government filing on Friday, Capital One disclosed that there are approximately $8.5 billion in loans in the existing Walmart credit card portfolio.
It is not yet clear when Walmart might name a new banking partner. The Associated Press sent an email to Walmart seeking comment on Saturday.
