Walmart ends credit card partnership with Capital One: What to know
Walmart Dumps Capital One: Why?
Walmart has terminated its credit card partnership with Capital One, which had been the exclusive issuer of Walmart's consumer credit cards since 2019. The decision follows a lawsuit where Walmart accused Capital One of slow payment processing and failing to meet service standards, leading to a favorable ruling for Walmart in March. Despite the split, existing Capital One Walmart Rewards cardholders can continue using their cards and earning rewards until further notice.
What reasons did Walmart provide for wanting to terminate their partnership with Capital One?
Walmart sought to terminate its partnership with Capital One due to several customer service issues. Specifically, Walmart accused Capital One of taking too long to process payments and mail replacement cards to customers3. Additionally, Walmart claimed that Capital One had admitted to failing to meet some of the service standards set by Walmart. These service shortcomings led Walmart to pursue legal action to end the agreement prematurely, arguing that these issues warranted an early termination of their partnership.
How did Capital One respond to Walmart's allegations regarding service standards?
Capital One responded to Walmart's allegations by disputing the claim that the service issues were sufficient grounds for ending the partnership. The bank argued that the issues cited by Walmart did not justify terminating the agreement and suggested that Walmart's actions were an attempt to end the deal prematurely. Capital One maintained that the service problems had been addressed and resolved in accordance with the terms of their agreement, implying that Walmart's move to terminate the partnership was not warranted based on the actual service performance.