Walmart is severing its partnership with Capital One, which issued its store-branded credit cards since 2019. This decision comes after a federal judge ruled in Walmart’s favor, allowing them to terminate the contract due to Capital One’s shortcomings in customer service.
According to Walmart, Capital One was slow to post transactions and replace lost cards in a timely manner. These issues came to light in late 2022 and early 2023, leading to a lawsuit filed by Walmart in April 2023. The March 2024 court decision validates Walmart’s claims and paves the way for the separation.
While the partnership has ended, existing cardholders can continue using their cards and redeeming rewards as usual. Capital One, however, is moving forward with its previously announced acquisition of Discover Financial Services, a deal that will create a major player in the global payments industry.
Source: Reuters