Is The New Capital One Walmart Credit Card Worth It?

This $0-annual fee card can earn up to 5% cash back.

a woman uses the new capital one walmart rewards card
Courtesy: Walmart Newsroom

Walmart and Capital One have joined forces with the Capital One Walmart Rewards Credit Card Program. This program rolls out two new cards, a store-exclusive card, the Walmart Rewards Card, and non-exclusive card, the Capital One Walmart Rewards Mastercard.

The Capital One Walmart Rewards Mastercard is packed with worthwhile perks, even for non-Walmart shoppers. We’ve rounded up the pros and cons of Walmart’s new credit card to help you decide if it deserves a place in your wallet.

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Perks of the New Walmart Credit Card

For a co-branded retail credit card, the perks are impressive. Here’s what you can expect when you use this card:

  • 5% back on Walmart.com and Walmart Grocery Pickup and Delivery purchases
  • 5% back on in-store purchases when using Walmart Pay for the first 12 months after approval
  • 2% back on Walmart purchases in stores outside of the introductory offer
  • 2% back on restaurants and travel
  • 1% back everywhere else

On top of these benefits, the card carries no annual fee or foreign transaction fees—i.e. you can use this card overseas without racking up fees.

Cardmembers can redeem earned rewards any time for travel, gift cards, during online checkout at Walmart.com, for recent purchases and statement credits.

While we haven’t seen how far earned rewards can go towards travel and gift cards, it might be best to plan on rolling your cash-back bonuses towards future Walmart.com purchases.

Walmart Rewards Mastercard Sign-up Bonus

Unlike cards other reward credit cards, the Capital One Walmart Rewards Mastercard does not offer a huge, upfront sign-up bonus.

However, it does reward Walmart shoppers during their first year. For the first 12 months after approval, users can earn 5% cash back on in-store purchases when they use Walmart Pay.

After the introductory offer expires, Walmart shoppers will earn 2% back on their in-store purchases. The timing of the card’s release is in sync with Black Friday and Christmas shopping.

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Is the Walmart Rewards Mastercard Worth It?

Walmart shoppers will see the most benefits using the Capital One Walmart Rewards Mastercard. Even if you only use the card for Walmart Grocery Pickup services and don’t set foot in a Walmart, the card will reward you well.

For example, spending an average of $125 per week through Walmart Grocery Pickup will earn you $325 back by the end of the year—that’s like getting three weeks’ worth of groceries for free. This is better than Costco’s Anywhere Visa Card, which earns Costco shoppers 4% back on the first $7,000 spent annually.

If you are not a huge Walmart fan, you will still see some benefit from using a no-annual-fee card that earns you 1-2% cash back on all non-Walmart purchases.

However, if you aren’t going to take advantage of the 5% cash back from Walmart purchases, consider using a credit card that rewards you better for your shopping needs.

Not Sure if the Capital One Walmart Rewards Card Is Right for You?

If you’re interested in a credit card that rewards your spending, but you’re not sure if Walmart’s new cards are right for you—visit Slickdeals’ credit card hub for details about rewards credit cards that are popular in the Slickdeals community.

Ashley Eneriz

Ashley Eneriz is a personal finance writer based in Southern California. She loves a good deal and is not afraid to dig through a thrift store to score amazing finds. When not writing about money, she is taking care of her three girls, homeschooling, or stuck with her nose in a book.

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