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There is a new addition to Capital One credit cards, as Capital One and Walmart are kicking off a new partnership with the release of two credit cards that promise big rewards for Walmart customers — especially digitally savvy online shoppers..

The private-label option, the Walmart Rewards Card, is a store card focused on rewards exclusively at Walmart stores, Walmart.com, the Walmart app and at Walmart fuel stations.

The co-branded Capital One Walmart Rewards Mastercard, on the other hand, offers cash back rewards on restaurants, travel and other purchases as well as with Walmart.

“We feel as if this card is a nice complement to our existing cards, because it’s going to offer customers a different set of value propositions with that specific earn on Walmart than some of our other cards would,” says Daniel Mouadeb, senior vice president, head of Walmart partnership at Capital One, about the Walmart Rewards Mastercard. “Some customers might get it because they love the Walmart rewards and they shop at Walmart. Others might just get it because it’s a great rewards card.”

Capital One Walmart Rewards Mastercard

As the more comprehensive of the two cards, the Capital One Walmart Rewards Mastercard offers cash back rewards across popular categories as well as at Walmart, all for no annual fee. Here’s what you can earn:

  • 5 percent back on purchases made on Walmart.com (including Walmart Grocery Pickup and Delivery)
  • 5 percent back on in-store purchases using Walmart Pay for the first 12 months of card ownership as an introductory offer (unlimited 2 percent back on in-store purchases thereafter)
  • 2 percent back on restaurants and travel
  • 1 percent back on all other purchases

According to Capital One, the 2 percent travel category is broadly defined and includes airline, hotel and car rental purchases as well as ride-sharing services, taxis, rails and buses, among others.

There is no foreign transaction fee and you’ll also get benefits such as car rental insurance and extended warranties, plus Capital One’s digital tools which include purchase notifications and security alerts.

You can redeem your cash back rewards at any time for travel within the Capital One travel portal, statement credits, online purchases at Walmart.com, gift cards and more.

Walmart Rewards Card

The private label Walmart Rewards Card is the more traditional store card offering, with rewards focused on purchases made with the retailer itself. Cash back categories include:

  • 5 percent back on purchases made on Walmart.com and the Walmart app
  • 5 percent back on in-store purchases using Walmart Pay for the first 12 months of card ownership as an introductory offer (unlimited 2 percent back on in-store purchases thereafter)
  • 2 percent back at Walmart Fuel Stations (including Murphy’s USA locations)

According to Mouadeb, if your application for the Capital One Walmart Rewards Mastercard is denied, you’ll be automatically considered for the Walmart Rewards Card.

“Some customers only want this card that will work at Walmart as an in-store card, and if they want they can apply directly for the store card,” he says. “But what it also allows us to do is approve a broad spectrum of customers.”

“We wanted a card that would be appealing and that we could give to the upmarket, heavy-spending customers, as well as a card that we could give to more underserved and those who have more challenging credit scores. By having a private label and a co-brand, we’re able to span the full credit spectrum.”

Bottom line

With an in-store 5 percent category only offered as an introductory offer, the Walmart Rewards Mastercard does fall short of Target’s REDcard and the Amazon Prime Rewards Visa Signature card for in-store rewards. But frequent Walmart shoppers who take advantage of online and mobile purchasing can maximize value from the card.

If you don’t already have a card that earns rewards on restaurants or travel, you can add more value with those purchases, too.

Both cards are available beginning Sept. 24. You can apply through the Walmart or Capital One websites or through the Walmart app. You can also use the Text to Apply feature in-store. After your application is approved and your identity verified, you’ll receive access to your card, which you can add to your online Walmart account or Walmart Pay within the app to begin using immediately.

If you’re a current Walmart cardholder, you can convert your card to either of the new card offerings beginning Oct. 11 and receive the same introductory 5 percent back in-store offer through Oct. 14, 2020.

 

The information about the Capital One Rewards Mastercard has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.