A four-year-old Walmart credit card arrangement has apparently been terminated by Walmart suing Capital One. The retail juggernaut claims the bank has fallen short of its standards for client service, according to stories that were published on Friday, April 7.
Despite the deal being announced in 2018, it didn’t take effect until the following year. The partnership made Capital One the sole U.S. issuer of Walmart’s credit card and its co-branded credit card program, PYMNTS reported at the time. Walmart’s attorneys stated in the lawsuit that Capital One “consistently failed to meet the customer-service standards required by the contract.” The lawsuit was filed in federal court in Manhattan.
What is the Lawsuit?
The lawsuit claims that Capital One fell short in a number of “critical” areas of customer service, including failing to issue new cards within five days and failing to swiftly publish transaction information to cardholders” accounts. When contacted by PYMNTS for comment, a representative of Capital One described Walmart credit card lawsuit as an attempt to prematurely stop the agreement or renegotiate its current partnership.
The representative stated, “These insignificant servicing issues were resolved by Capital One in accordance with the terms of the Agreement, without harm to customers, the Program, or Walmart credit card.” Capital One challenges Walmart’s ability to modify the terms of the current relationship in the middle of it, and we will tenaciously defend our legal rights in court.
Another Credit Card Deal
One month ago, the PYMNTS examined a different Walmart credit card deal that, as highlighted here, is a “shot across the bow of Amazon Prime.” This is when the lawsuit was filed. Holders of American Express Platinum Cards are eligible for a free Walmart+ membership as part of the promotion. Amex members receive a statement credit worth $12.95 when they bill their Walmart+ monthly membership to those cards.
According to PYMNTS data, one in five adult shoppers in the United States are members of Walmart+. According to Walmart management, the shop has also been gaining market share among younger consumers and those making $100,000 or more, which fits the Amex profile.
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