Capital One was the exclusive issuer of Walmart cards for nearly five years, offering the Capital One Walmart Rewards Card and Walmart Rewards card. But that partnership has since ended, with a federal court ruling in March 2024 that Walmart could terminate the agreement after the retailer cited customer service concerns.
While Capital One is no longer issuing new Walmart cards, cardholders can still use their existing cards for now. But with changes to this product now expected, it may be a good time to consider alternative cards that earn rewards on Walmart purchases.
[Read: Best Rewards Credit Cards.]
What Walmart Cardholders Can Expect
While you can’t apply for a new Walmart card with Capital One anymore, nothing has changed yet for current cardholders. If you have a Capital One Walmart Rewards Card or Walmart Rewards Card, you can still use your card to make purchases while earning and redeeming rewards.
However, Capital One has indicated that changes are coming. While we don’t know precisely what Capital One has planned for Walmart cardholders, the bank has said it will move Walmart card accounts to a different Capital One card.
The Capital One Walmart Rewards Mastercard earns 5% on Walmart.com. In-store purchases made with the card via Walmart Pay earn 5% back for the first 12 months after opening an account, then 2% after that. Travel and restaurant purchases earn 2% back, and all other purchases earn 1% back.
“It’s likely worth waiting to see what Capital One card customers are converted to first to see if it’s an acceptable alternative,” says Barry Choi, a credit cards and personal finance writer with more than 10 years of experience. “Other options include the U.S. Bank Shopper Cash Rewards Visa Signature Card and Chase Freedom Flex Card.”
[Read: Best Grocery Credit Cards.]
Alternative Credit Cards for Walmart
No cards on the market offer Walmart earning rates better than the Capital One Walmart Rewards Mastercard. Many cards specifically exclude purchases from Walmart and other big retailers from their elevated rewards spending categories. Still, there are some credit cards that can earn strong rewards on Walmart purchases.
Andrea Woroch, a money-saving expert and former consumer advisor with Kinoli, recommends considering an alternative cash back card, whether it offers flat-rate earnings or rotating bonus categories.
“Discover it® Cash Back is a great option for Walmart shoppers because it gives you 5% cash back at different categories and stores each quarter, one of which includes Walmart active from (July 2024 to September 2024),” Woroch says.
Consider these Walmart card alternatives:
— Blue Cash Everyday® Card from American Express. You can earn 3% cash back on up to $6,000 spent annually on U.S. online retail purchases, and there’s no annual fee. You can also earn a $200 statement credit after spending $2,000 within the first six months. (Rates & Fees)
— Capital One Venture Rewards Credit Card. The Capital One Venture Rewards Credit Card earns 2 miles per dollar on all purchases, including Walmart purchases. There’s a $95 annual fee, but you can currently earn a sign-up bonus of 75,000 miles after spending $4,000 within the first three months. (Rates & Fees)
— Bank of America® Customized Cash Rewards Credit Card. With the Bank of America® Customized Cash Rewards Credit Card, you can earn 3% cash back in a category of your choice. One of the 3% cash back categories is online shopping, which includes Walmart.com. There’s no annual fee, and you can earn a $200 cash rewards bonus after spending at least $1,000 within the first 90 days.
[Read: No-Annual-Fee Credit Cards.]
— U.S. Bank Shopper Cash Rewards Visa Signature Card. With the U.S. Bank Shopper Cash Rewards Visa Signature Card, you can choose two retailers to earn 6% cash back on the first $1,500 in combined purchases, and Walmart is one of the available retailers. You can also earn 3% cash back on your first $1,500 in eligible purchases in your choice of everyday spending categories. All other purchases earn 1.5% cash back. There’s a $95 annual fee, which is waived for the first year.
— Chase Freedom Flex Card. This card has no annual fee and offers quarterly rotating bonus categories, which have included 5% cash back on up to $1,500 at Walmart in the past. You can earn a $200 bonus after spending $500 within the first three months, and there’s a 15-month 0% introductory annual percentage rate on purchases and balance transfers.
— Discover it® Cash Back. The Discover it Cash Back® card is another cash back card with rotating quarterly bonus categories — sometimes including Walmart — that earn 5% on up to $1,500 spent within the quarter. There’s no annual fee, and you can get a 100% cash back match at the end of your first year. You can also take advantage of a 0% APR on purchases for the first 15 months. (Rates & Fees)
— The Platinum Card from American Express. Although The Platinum Card from American Express has a hefty $695 annual fee, one of the card’s numerous benefits is a monthly credit that covers Walmart+ membership. (Rates & Fees)
You can continue to use your Capital One-issued Walmart card and await an update from the bank, or you can consider other cards that may be a good long-term fit for your Walmart purchases. You might also want to keep an ear out for any announcements from Walmart on a new credit card partner.
“There’s nothing wrong with waiting to see what Capital One credit card consumers are transitioning to,” says Choi. “The card offered might be of good value. However, since the partnership is ending, it’s worth looking at other credit cards and loyalty programs.”
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Capital One and Walmart Call It Quits: Which Card To Use at Walmart Now originally appeared on usnews.com
