Capital One Walmart Card Review: Is the Rewards Credit Card a Good Deal?

Here's how to score 5% back with the new Walmart credit card.

By Cynthia Bowman January 3, 2020 Compare Rewards Cards

Capital One has partnered with Walmart to release a new Mastercard that makes it possible to get up to 5% back on store and online purchases. Besides cash-back opportunities on Walmart purchases, you can use the card anywhere Mastercard is accepted for up to 2% back, depending on the category. Earning rewards for Walmart shopping is easier than ever.

“Whether it’s online, through the app or in-store, Walmart is already a go-to destination for the things consumers need for their families to thrive, and now cardholders can earn even more rewards on purchases at Walmart and everywhere else they use their card,”Pepper Evans, vice president of product strategy and marketing at Capital One, said.

Wondering if the new Walmart credit card is right for you? Before you dive in, here’s a quick overview of GOBankingRates’ Walmart credit card review:

Capital One Walmart Credit Card Review
Capital One Walmart Rewards Credit Card Advantages and Disadvantages
How the Capital One Walmart Rewards Credit Card Compares With Other Retail Cards
Who Should Consider the Capital One Walmart Rewards Mastercard?
Who Should Pass on the Capital One Walmart Rewards Mastercard?
How To Apply for the Capital One Walmart Rewards Credit Card
Earn Rewards Using the Walmart Credit Card Everywhere

Capital One Walmart Credit Card Review

If you regularly shop at Walmart stores or Walmart.com, you’ll earn between 2% and 5% back on Walmart’s everyday low prices using the Walmart Rewards Mastercard. Here’s what you need to know about the card:

Annual Fee: No annual fee

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Rewards:

Unlimited cash-back earnings of 5% on online Walmart purchases including Walmart app purchases, grocery pickup and delivery
2% back on Walmart store purchases
2% back on restaurant and travel purchases
1% back everywhere else

Sign-Up Bonus: 5% back on in-store purchases when using Walmart Pay for the first 12 months once approved

APR: Variable rate of 17.99%, 23.24% or 26.99%, based on credit

Late Fees/Penalties: Late fee of up to $39

Foreign Transaction Fee: None

Retail Protections:

Fraud liability of $0
Security alerts via text, email and phone
Extended warranty
Purchase protection

Travel Protections:

Car rental collision damage waiver insurance
Travel accident and emergency medical insurance
Trip cancellation insurance
Lost, damaged or delayed baggage insurance

Credit Score Needed: It’s unclear if excellent credit is required, but if Capital One is unable to approve your application for the Walmart Rewards Mastercard, Capital One will automatically consider you for a Walmart Rewards Card.

Other Benefits:

Walmart allows you to redeem rewards points at any time for any of these reasons:

Gift cards
Travel
Recent purchases
During online checkout at Walmart.com
To apply as a statement credit

See: Walmart Holiday Hours

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Capital One Walmart Rewards Credit Card Advantages and Disadvantages

After analyzing all the features and the terms and conditions of the Walmart Mastercard by Capital One, take a closer look at the advantages and drawbacks.

Advantages

There are more pros than cons to the Walmart credit card. Three of the top reasons this card is worth a spot in your wallet follow:

High Cash-Back Rewards

You can buy gas, groceries, electronics, clothing and more at Walmart. Using the Walmart Rewards Mastercard gives you the ability to earn between 2% and 5% cash-back rewards rates. The rewards don’t stop at Walmart and Walmart.com — dining, travel and other everyday card spending earn you 1% to 2% cash-back rewards, too.

Low Fees

Cash-back rewards cards that carry annual fees and other charges can eat up your rewards earnings. The Walmart Rewards Mastercard has no annual fee. And you can avoid the pricy late payment penalty of up to $39 by making your payments on time.

Great for Travel

No foreign transaction fees keep overseas travel worry-free. Cardholders can also take advantage of Mastercard’s travel benefits and protections, including:

Car rental collision damage waiver insurance
Travel accident and emergency medical insurance
Trip cancellation insurance
Lost, damaged or delayed baggage insurance

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Learn: What Is Walmart’s Holiday Return Policy?

Disadvantages

The Capital One Walmart Rewards Mastercard doesn’t have many drawbacks. But like all credit cards, there are some. Here are three drawbacks you may want to think about.

Better Rewards for Online Purchases

The card gives you 5% back on online purchases but only 2% back on in-store shopping and gas rewards when you fuel up at Walmart or Murphy USA stations. The good news is you’ll receive a full 5% back for in-store purchases for the first year when you get approved.

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No Free Shipping or Extended Returns Perks

Many of the best store credit card offers include special customer perks like extended return times and free shipping. The Walmart Mastercard doesn’t offer these special perks.

High-Interest Rate

The Capital One Walmart credit card has a variable rate of 17.99%, 23.24% or 26.99%, depending on credit score. The APR is on the high side and can be an issue if you carry a large balance month-to-month. To avoid having to pay steep interest, pay your credit card bill in full every month.

Find Out: Pros and Cons of Store Credit Cards

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How the Capital One Walmart Rewards Credit Card Compares With Other Retail Cards

Wondering how the Walmart Rewards Mastercard measures up to other store cards? Here’s more about what makes this card unique.

Open-Loop Card

The Walmart Credit Card is designed to help shoppers maximize their rewards-earning potential with savings on all Walmart store, grocery, gas and online purchases. But the savings don’t stop there. The Capital One Walmart Rewards Card is an open-loop credit card. Open-loop credit cards can be used anywhere credit cards are accepted. Not all store cards are open-loop, which makes this card more attractive.

Rewards Earnings on More Than Store Purchases

Because the Walmart store credit card is open-loop, it’s possible to earn rewards on purchases outside of Walmart like dining, travel and other purchases. Capital One adds enticing cash-back perks by doubling the percentage back on dining and travel purchases from 1% to 2%.

Travel Perks Other Store Cards Don’t Offer

Walmart’s Mastercard stands apart from many store credit cards thanks to its travel perks. You’ll be protected against unexpected events during your trip with insurances like delayed, lost or damaged luggage insurance, trip cancellation insurance and travel accident insurance. Pay for your rental car with your Walmart card and you’ll be covered by collision damage waiver insurance, which will cover the cost of damages to your rental vehicle.

Take a look at the following comparison of popular retail store credit cards to see how the Walmart Rewards Mastercard compares.

Check Out: How To Use Your Credit Cards To Make Money — and To Save Money, Too

Walmart Credit Card Review and Comparison
Card	Perks	APR	Fees and Penalties
Capital One Walmart Rewards Card	5% back in Walmart stores the first 12 months 2% back after the first 12 months 5% back on Walmart.com purchases 2% back on gas from Walmart and Murphy USA fuel stations 2% back on restaurants and travel 1% back on all other Mastercard purchases	Variable rate of 17.99%, 23.24% or 26.99% APR based on credit	Annual Fee: $0 Late Fee: up to $39
Amazon Prime Rewards Visa Signature Card	$100 gift card on approval 5% back at Amazon and Whole Foods 2% back at restaurants, gas stations and drugstores 1% back on all other purchases Travel, emergency and lost luggage assistance Travel accident insurance	15.74% to 23.74%, based on credit	Annual fee: $0 although an annual Prime membership of $119 ($59 for students) is required Balance transfer fee of $5 or 5%, whichever is greater Late fee of $39 Return-payment fee of $39
Costco Anywhere Visa Card by Citi	4% cash back on gas up to $7000 and 1% after All Costco purchases get 2% cash back All other purchases earn 1% back Damage and theft purchase protection Extended warranty on purchased items	Variable 16.74% APR	No annual fee although a Costco membership of $60 or $120 is required Up to $39 late fee Up to $39 returned check fee
Macy’s American Express	Depending on Silver, Gold or Platinum membership level, get rewards like free shipping, additional savings and cash back 3% back on restaurant purchases 2% back on gas and grocery purchases 1% on all other purchases	Variable 26.74% APR	Annual fee: $0 Late payment fee: up to $39 Returned payment fee: up to $39
Target RedCard	5% off all Target purchases Free two-day shipping Additional 30 days for returns and exchanges Exclusive RedCard discounts and offers	Variable 24.65% APR	Annual fee: $0 Late payment fee: up to $39 Returned payment fee: up to $28

See: Best Cash-Back Credit Cards

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Who Should Consider the Capital One Walmart Rewards Mastercard?

The Capital One Walmart Rewards Card is ideal for frequent Walmart shoppers who want to enjoy additional savings in the form of cash-back rewards. If you regularly shop at Walmart for gas, groceries and fuel, the cash-back rewards can add up. Redeeming rewards is simple and can be applied several ways:

Gift cards
Travel
To pay for recent purchases
During online checkout at Walmart.com
As a card statement credit

The card can also be used anywhere Mastercard is accepted to get 2% back on restaurant and travel purchases and 2% back when you buy gas at Walmart and Murphy USA fuel stations. Earn 1% back on all other purchases.

Besides the benefits of earning savings rewards at Walmart, travelers will love travel-related card benefits like trip cancellation insurance, collision damage waiver insurance for rental cars and delayed, lost or damaged baggage insurance coverage.

Shopping Tips: Things To Avoid at Walmart

Who Should Pass on the Capital One Walmart Rewards Mastercard?

Consumers who don’t shop at Walmart and Walmart.com regularly may not benefit from this card’s cash rewards. People who spend large amounts on gas, groceries and travel may benefit from higher cash-back and travel rewards offered by other credit card issuers.

If you plan on carrying a balance, the Walmart Mastercard’s higher APR can make paying off your balance over time costly. Consider another alternative, such as a credit card with a lower interest rate or a balance transfer credit card with a low introductory APR when you need to pay your balance over time.

Compare: Best Rewards Credit Cards

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How To Apply for the Capital One Walmart Rewards Credit Card

To apply for a Walmart Rewards Card, you must be a U.S. resident and at least 18 years old. You can apply online by collecting and entering the following info:

Name
Date of birth
Social Security number
Citizenship status
Residential address
Phone number
Employment status
Annual income
Monthly mortgage or rent amount
Bank account types held

Earn Rewards Using the Walmart Credit Card Everywhere

Capital One’s latest collab with Walmart will please loyal shoppers of the world’s largest retailer by offering cash back on store and online purchases. Unlike other store cards that are limited to a particular retail store, the Capital One Walmart Mastercard can be used anywhere credit cards are accepted, allowing cardholders to earn cash back on non-Walmart purchases as well.

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