Alert – Walmart just removed a major way that customers can save money

Walmart customers are losing a major way to save money – all because of a feud between the world’s largest retailer and Capital One.

In 2019, the Virginia-based bank became the sole-issuer of Walmart’s two store credit cards.  The cards offered a lucrative 5 percent cashback on the retailer’s website and 2 percent on items bought in person.

In May 2024, Walmart terminated the partnership after accusing Capital One of failing to promptly replace lost credit cards and update cardholders’ accounts.

Initially, customers were told they could use the cards – and land the cashback – until Capital One informed them otherwise.

But now Capital One has said it will be soon replacing these cards with a new one known as a Quicksilver Mastercard, that does not carry the Walmart perks.

Walmart accused Capital One of negligence in its credit card partnership. A federal judge took Walmart’s side in March 2024 

Capital One is ranked just 1 star out 5 based on more than 1,600 reviews submitted to the Better Business Bureau. It has closed 12,969 complaints in the last three years

The dispute between the two giants led to a court battle that started in April 2023 and ended in March 2024. Walmart came out on top.

District Judge Katherine Polk Failla handed down the ruling, finding that Capital One was indeed responsible for ‘repeated customer service failures,’ which entitled Walmart to end the partnership under their mutually agreed-upon contract.

As a result, the Capital One Walmart Rewards Mastercard – which can be used anywhere Mastercard is accepted – and the store-exclusive Walmart Rewards Card are no longer accepting applications.

But since Capital One is still owns the actual credit accounts associated with these now defunct Walmart cards, the bank has opted to slyly transition them to its own Quicksilver Mastercard.

Capital One values the balances on these accounts at roughly $8.5 billion, according to court documents, and its plan to hand out new cards will allow it to continue making money off those who choose to use them.

Eligible customers will be issued a replacement no-annual fee Quicksilver card ‘on a rolling basis, so not all customers will receive their card at the same time,’ Capital One’s website noted.

The Quicksilver card is a no-frills offering that gives 1.5 percent cashback on nearly every purchase. It has no annual fee and has no foreign transaction fees

A spokesperson for the bank told NerdWallet Walmart cardholders should expect their new card in the mail by September or early 2025 at the latest.

Both Walmart cards remain active and can be still used, but once customers receive the replacement, Capital One recommends they activate the new one and destroy their old card.

Any points that were earned on the Walmart cards will transfer over to the Quicksilver at a value of one cent per point. 

Of course, the Quicksilver card won’t be able to earn 5 percent back at Walmart stores, but it does offer 1.5 percent unlimited cashback.

That’s better than 1 percent unlimited cashback that the Capital One-branded Walmart card offered in its heyday, but most people don’t use store credit cards for outside purchases.

Now, Walmart finds itself in the unique position of not currently having a native credit card for its customers. 

It has two debit rewards cards eligible for 3 percent cashback and a reloadable Visa debit card through Green Dot Bank.

The big-box store hasn’t yet shared what its plans are for future credit card offerings.