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.
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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.
