Capital One Financial and Walmart have announced the end of their exclusive credit card partnership, citing disputes over transaction processing and customer service. Walmart, the world’s largest retailer, had accused Capital One of being slow in updating cardholder accounts and replacing lost cards. This decision comes after Capital One started issuing Walmart-branded credit cards in 2019, following the end of Walmart’s long-standing partnership with Synchrony Financial.
The issues between the two companies surfaced in late 2022 and early 2023, leading to a lawsuit in April 2023. In March 2024, a federal judge ruled in favor of Walmart, allowing them to terminate the partnership due to Capital One’s failure to meet customer service standards. Despite the split, cardholders will still be able to earn and redeem rewards, with existing rewards maintaining their value.
In a statement, a Capital One spokesperson mentioned that the decision to end the partnership was made in the best interest of customers. Capital One will continue to manage the existing credit card portfolio totaling approximately $8.5 billion in loans. Additionally, Capital One recently announced a $35.3 billion deal to acquire Discover Financial Services, aiming to create a global payments powerhouse.
As the two companies part ways, customers can expect a smooth transition to Capital One’s flagship rewards products. The move marks a significant shift in the credit card landscape, with both Walmart and Capital One focusing on enhancing customer experience and service quality in the future.
