Walmart customers are losing an important way to save money, all because of a dispute between the world’s largest retailer and Capital One.
In 2019, the Virginia-based bank became the sole issuer of Walmart’s two credit cards. The cards offered a lucrative 5% cash back on the retailer’s website and 2% cash back on items purchased in person.
In May 2024, Walmart terminated the partnership after accusing Capital One of failing to promptly replace lost credit cards or update cardholders’ accounts.
Initially, customers were told they could use the cards and get the refund until Capital One told them otherwise.
But now Capital One has said it will soon replace those cards with a new one, known as the Quicksilver Mastercard, that doesn’t include Walmart’s benefits.
Walmart accused Capital One of negligence in its credit card partnership. A federal judge sided with Walmart in March 2024.
Capital One has a rating of just 1 star out of 5 based on more than 1,600 reviews submitted to the Better Business Bureau. It has closed 12,969 complaints in the past three years.
The dispute between the two giants led to a legal battle that began in April 2023 and ended in March 2024. Walmart emerged victorious.
District Judge Katherine Polk Failla issued the ruling, finding that Capital One was indeed liable for ‘Repeated failures in customer servicewhich gave Walmart the right to terminate the partnership under the mutually agreed contract.
As a result, the Capital One Walmart Rewards Mastercard (which can be used anywhere Mastercard is accepted) and the store-only Walmart Rewards Card are no longer accepting applications.
But since Capital One still owns the credit accounts associated with these now-defunct Walmart cards, the bank has opted to quietly transfer them to its own Quicksilver Mastercard.
Capital One values the balances on these accounts at about $8.5 billion, according to court documents, and its plan to distribute new cards will allow it to continue making money from those who choose to use them.
Eligible customers will be issued a replacement Quicksilver card with no annual fee “on a rolling basis, so not all customers will receive their card at the same time,” Capital One’s website noted.
The Quicksilver card is a simple offering that gives you 1.5% cash back on almost all purchases. There is no annual fee and no foreign transaction fees.
A spokesman for the bank said Nerd Wallet Walmart cardholders should expect to receive their new card in the mail by September or early 2025 at the latest.
Both Walmart cards remain active and can continue to be used, but once customers receive the replacement, Capital One recommends they activate the new card and destroy their old card.
Any points earned with Walmart cards will be transferred to Quicksilver at a value of one cent per point.
Of course, the Quicksilver card won’t earn you 5 percent cash back at Walmart stores, but it does offer unlimited 1.5 percent cash back.
That’s better than the unlimited 1 percent cash back that the Capital One-branded Walmart card offered in its heyday, but most people don’t use store credit cards for outside purchases.
Now, Walmart is in the unique position of not currently having a native credit card for its customers.
Has two rewards debit cards eligible for 3 percent cash back and a reloadable Visa debit card through Green Dot Bank.
The big box retailer has not yet shared what its plans are for future credit card offerings.