Capital One Walmart Rewards Mastercard Review: 5% Back, But With Restrictions

Today, Walmart launched their new Capital One Walmart Rewards Mastercard (credit card) and Walmart Rewards Card (store card that only works at Walmart). Here are the highlights, which unfortunately include some hoops and hurdles to jump through.

  • Intro offer: 5% back at Walmart in-store when using Walmart Pay during the first 12 months.
  • 5% back on purchases at Walmart.com and Walmart app (includes Walmart Grocery Pickup and Delivery).
  • 2% back on Walmart purchases in stores after the introductory offer.
  • 2% back on restaurants and travel.
  • 1% back on all other purchases.
  • No foreign transaction fee.
  • No annual fee.

You can redeem your rewards during online checkout at Walmart.com, for recent purchases, and statement credits. (Gift cards and travel are listed as options too, but why would you choose that over cash unless they offer some sort of bonus?)

The only long-lasting benefit is the 5% back at Walmart.com and Walmart app (includes Walmart Grocery Pickup and Delivery). If you spent $1,000 a year at Walmart.com, then that’ll get you $50 in cashback. I might spend that much at Walmart in-store over a year, but definitely not Walmart.com at this time. If they released Walmart’s in-store sales volume compared to their online sales, I think you’d see a large disparity.

I was disappointed to see that 5% back in-store only works (1) if you remember to set up and use their Walmart iOS or Andriod app and (2) it only lasts for the first 12 months. After a year, it’s back down to only 2% back on Walmart purchases which really isn’t very appealing with multiple 2% cash back on everything alternatives. Did they not realize that nobody liked their old Synchrony card because it only offered a super-sad 1% back at Walmart stores?

Why is Walmart so stingy with the cash back? Perhaps Walmart’s profit margins are too slim to match Target REDcard’s 5% cash back on both in-store and online purchases. I suppose you could see that as a good thing. But still, it gives me little reason to get this card. Costco only offers 2% back via their self-branded credit card, but at least throws in 4% back on gas and 3% back on travel and restaurants. Meanwhile, Amazon offers 5% back if you have Prime and includes Whole Foods purchases.

Bottom line. Walmart has a new co-branded credit card. The only long-lasting benefit is the 5% back at Walmart.com and Walmart app (includes Walmart Grocery Pickup and Delivery). It’s not very good any place outside of Walmart, and not even especially good at Walmart stores after the first year. If Walmart.com steps up their game to include better delivery options, perhaps it will be worth a second look.

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