Posted by Chuck on January 22, 2019
Credit Cards

Published on January 22nd, 2019 | by Chuck

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Walmart Chooses Capital One as their New Credit Card Issuer, Ends Synchrony Partnership

Update 1/22/19: During a conference call to discuss Q4 earnings Capital One said they expect to launch the new program and onboard acquired cardholders in the third quarter or early fourth quarter of 2019. Portfolio is expected to consist of $9 billion of receivables.  Hat tip to reader Joey M

Walmart chooses Capital One as their credit card issuer, in a blow to their current backer Synchrony, WSJ reports. Capital One will issue both the stores cards for use at Walmart and the co-branded cards which can be used anywhere.

The move is the biggest portfolio change since Costco shifted over to Citibank, and hits Synchrony hard with the loss of their 19-year retail partner. Walmart is one of Synchrony’s five biggest clients, accounting for about 19% of Synchrony’s store-card portfolio.

It’s not known what will happen to existing Walmart-Synchrony cardholders, amounting to about $10 billion. Sometimes banks will buy out the back-book of the previous issuer, other times it won’t. Also no word whether the rewards structure will change (or whether they’ll start offering signup bonuses better than a 2-liter bottle of soda), but I expect most of those kinds of details will remain similar to how it’s been until now.

It was down to Capital One and Synchrony in the running, and ultimately Walmart chose Capital One with an eye toward a more tech-forward partner with broader banking capabilities and a digital future. 

Synchrony just recently spent $7 billion purchasing consumer credit receivables from PayPal and extending that co-branded relationship until 2028.

 



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JV
JV

Will this extend to Sams club credit cards too? Would be an improvement over the current Synchrony platform, which is lacking function.

Phill
Phill

Great question! Will it?

KT785
KT785

I’m likewise curious.

JV
JV

From what i read, it doesn’t seem like Walmart and Sams are a package deal, so us with a sams card are stuck with synchrony.

DaveinAZ
DaveinAZ

I’d be very surprised if it doesn’t include Sams Club – you can use a Walmart store card at Sams Club & use Sams Club at Walmart, so it could be a bit complicated if they were issued by different banks.

Ultimate Arsehole

Why would it be complicated?

ProudMoney

Just announced today that Synchrony & Sam’s Club renewed partnership even though Walmart leaving Synchrony.

WM1

+1 for this legend

Mike
Mike

This is where our family shops for both groceries and household items. Probably upwards up 15K spend a year. If they would even have a credit card that gave 3% and some sort of sign-up bonus I would be in. I mean I guess being a person that pays off their bill every month I am not their ideal customer but I never understood why the Walmart Card sucked so bad.

George
George

I believe you still get a free watermelon when you sign up. Or is it a 2L soda now?

Mike
Mike

I would be good with a couple hundred bucks and a good earning rate. Right now it seems like I have some sort of gift card going through Dosh/Chase Pay/Sam’s Club etc since we shop there so much. Like I said give me 3-4% and I will happily use it all the time.

Chucks
Chucks

I think it’s because Walmart has modest markups.

Use the Altitude Reserve with Samsung Pay or similar for 4.5% back.

aubergine
aubergine

some of the neighborhood walmarts code up as grocery stores on Visa/MC

P
P

It looks like a fairly large portfolio even if the card sucked.

S Nack
S Nack

I switched to Walmart.com from Amazon for most of my household item purchases, I’m interested in the new card.

Antonio
Antonio

The Walmart Synchrony credit card is one of my foundation cards as I got it when it was a Walmart Discover card back in ’07. But I haven’t shopped in a Walmart since then nor do I have use of the card. Does anyone know if you can product change CapitalOne cards? (Assuming that all Walmart Synchrony credit card holders will be auto-converted to Walmart CapitalOne Credit cards)

Electroman
Electroman

Synchrony is a terrible card issuer. Unfortunately, CapitalOne isn’t very good, either. Actually they’re not bad except for pulling three bureaus every time.

Austin
Austin

I applied and was approved for the Cabelas credit card issued by Capitol One back in October 2018. They only pulled Transunion for that application. When I applied and was approved for the Quicksilver card 2 years earlier they pulled all 3 bureaus.

Mark Ostermann

So 3 – Mt Dew 2 Liter sign up bonus coming our way? Yeah Yeah!

Jelena
Jelena

I don’t want the Walmart card, but regarding Capital One, I thought I read somewhere that they only allow 2 cards per person. I have an old platinum card that I can’t close (oldest credit line) and a Venture One I downgraded to from the Venture. I wanted to apply for the Venture again. Did I make this rule up?

Aby
Aby

i am in the same boat when it comes to platinum; its gathering dust and havent used it for more than a year but cant close since it is my first and oldest credit line 🙁 … I even deposited $100 as security

Andrey
Andrey

You can try product changing it to something more useful.

Andrey
Andrey

You did. I had three cards with them a while ago.

Brandon
Brandon

The limit only applies to first party cards, not cobranded cards. Do things like this future card and the GM Buypower card don’t count

W
W

Two sub prime companies. Id expect a terrible interest rate and the signup bonus to upgrade to something like 10% off the first purchase.

If i were trying to make this card successful id make it 1 point overall, 3 at walmart, and 5 at walmart online. If trying to follow a “tech future” with cap1 id think an amex offer type weekly savings, but for individual grocery items, would be wise. Example: Free walmart brand item on purchase of $100 before tax and the item.

I wont be getting this card but if theyre smart it would look something like that to almost be appealing but not lucrative

Trevor
Trevor

Looks like it takes effect in 2019.

From MarketWatch:
Walmart and Capital One today announced that the companies have entered into a new, long-term credit card program agreement.

Under the terms of the agreement, Capital One will become the exclusive issuer of Walmart’s private label and co-branded credit card program in the U.S. beginning August 1, 2019…. Walmart will provide additional information in the coming months regarding the anticipated transition to the new card program in 2019.

bax
bax

Now if Paypal would follow suit and shitcan Synchrony too…

NinjaX
NinjaX

time to signup for the cc with synch because i keep getting cap1 denial.

Ben
Ben

Wonder what’s gonna happen with Sams Club credit card, which is also issued by synchrony. You use Walmart store card at Sams club and vice versa.

overseas
overseas

Sam’s Club may follow. Their contract with Synchrony hasn’t expired, but once it does…

Andrew
Andrew

I’ve been seeing a lot of $35 statement credit with $75 purchase for the last month at Walmart. Still really bad but at least it’s better than a soda.

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