Helena Lyng Blak
2 weeks ago

Walmart and Capital One Call It Quits on Partnership

Walmart and Capital One announce the end of their six-year card partnership amidst legal disputes.
Mishawaka - Circa August 2018: Walmart Retail Location. Walmart is boosting its internet and ecommerce presence to keep up with competitors XII — Photo by jetcityimage2
Mishawaka - Circa August 2018: Walmart Retail Location. Walmart is boosting its internet and ecommerce presence to keep up with competitors XII — Photo by jetcityimage2

On Friday, May 24, 2024, financial services company Capital One and retail giant Walmart announced they were ending their consumer credit card partnership.

The partnership entailed that Capital One was the exclusive issuer of Walmart’s consumer credit cards.

The two companies have been partnered since 2018, after Walmart ended its previous card partnership with Synchrony Financial.

However, in 2023, Walmart sued Capital One, saying that the credit card issuer was not meeting several contractual obligations by posting transactions and replacing lost cards too slowly, thereby failing to deliver adequate customer service. 

On March 26, 2024, United States District Judge Katherine Polk Failla, ruled in favor of Walmart, allowing the company to end its contract with the bank prematurely.

“The agreement’s terms clearly dictate that Capital One’s repeated customer service failures entitled Walmart to invoke the Termination Right and terminate the parties’ ongoing partnership,” Failla said in a written opinion according to Bloomberg

Despite the partnership ending, cardholders can continue to use their cards, Capital One and Walmart said in a joint press release. They can also earn and redeem awards unchanged. Capital One will remain the owner of the credit card accounts, and will continue to service customers.

According to USA Today, Capital One has said it will contact customers “in advance of any upcoming changes to customer account features or functionality.”

Walmart is a large retail chain with stores worldwide. It sells a variety of products, including groceries and electronics. The company is known for its widespread presence and low prices.

Capital One is a major financial institution offering a range of banking and credit services. Known for its credit card products, it also provides loans and savings accounts.

Disclaimer

The information provided by this Site is for general informational purposes only. All information on the Site is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on the Site.

More News

5 hours ago Federal Reserve Sees Progress on Inflation, Adjusts Rate Cut Expectations The Federal Reserve has adjusted its forecast for rate cuts this year, citing persistent inflation despite recent progress. High borrowing costs are expected to linger, impacting consumers and the broader economy.
6 hours ago Bitcoin Holds Steady as Fed Maintains Interest Rates: A Sign of Economic Caution In a cautious move, the U.S. Federal Reserve opted to keep interest rates unchanged, causing Bitcoin to hold its ground. Read more about the economic implications and market responses here: "The Committee judges that the risks to achieving its employment and inflation goals have moved toward better balance over the past year."
9 hours ago High-Stakes Showdown: Tesla Shareholders Decide on Elon Musk’s $56B Pay Package Tesla shareholders are set to cast their votes on Elon Musk's controversial $56 billion compensation package, a decision that could have far-reaching consequences for the company.
12 hours ago USDMXN: A Golden Opportunity USDMXN: A Golden Opportunity Amid Mexican Election Sell-Off, Says Steno Research Analyst
1 day ago EU's New Tariffs on Chinese EVs Hit Tesla and BYD Stocks! Tesla (TSLA) and BYD (1211) Stocks Plummet After EU Tariff Announcement
1 day ago Macro Mondays: Escaping the TRAP of Sideways Markets Andreas Steno, Mikkel Rosenvold And Mads Eberhardt talk macro and crypto
1 day ago EU launches trade war with China In a bold move that has sent ripples through global markets, the European Union has effectively launched a trade war against China. This decision, announced just three days after the European Parliament elections, raises significant questions about the influence and timing of the EU’s legislative body.
1 day ago July Bloodbath: Metals Set for Major Crash? Brace yourselves for a tumultuous July in the metals market! Industry experts are sounding the alarm as cluster risks in metals like gold, silver, and copper threaten a significant downturn. Here's why July could spell disaster for metal investors.
1 day ago 5 Stories To Invest in for Emerging Markets 5 Stories that might interest you if you're into investing in Emerging Markets