Walmart has ended a 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.
The companies said cardholders can still use their Capital One Walmart Rewards cards, which will continue to accrue rewards unless customers are notified of a change. Capital One will retain ownership and management 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 set for pickup or delivery, according to a program website. The agreement was to last until 2026.
But Walmart eventually soured on Capital One. In 2023, Walmart sued the McLean, Virginia-based company, saying it wanted to terminate the deal because Capital One was taking too long to process payments and send replacement cards. The lawsuit also says Capital One “admitted” that it failed to meet certain Walmart service standards. Capital One said service issues were not a reason to end the partnership and said Walmart was trying to “end the deal early.”
A federal judge ruled in Walmart’s favor in March.
In a government filing Friday, Capital One said there were about $8.5 billion in loans in Walmart’s existing credit card portfolio.
It is not yet clear when Walmart might appoint a new banking partner. The Associated Press sent an email seeking comment to Walmart on Saturday.