Maximize Capital One’s new Walmart credit cards with 5x points at Walmart.com

Sep 18, 2019

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Capital One and Walmart are teaming up on a new Capital One Walmart Rewards Credit Program. The rollout of this new program will include two new credit cards: the co-branded Capital One Walmart Rewards Mastercard and the private-label Walmart Rewards Card. Both cards will be available for applications starting Sept. 24, 2019.

With the co-branded Capital One Walmart Rewards Mastercard, you’ll earn unlimited 5x points on Walmart.com purchases (including grocery pickup and delivery), 2x on restaurants and travel and 1x on all other purchases. As part of an introductory offer, you’ll also earn 5x on in-store purchases made with Walmart Pay for the first 12 months. According to a Capital One representative, “travel” will be broadly defined to include airlines, hotels, car rentals, rideshare services, taxis, rail and bus rides and more.

The private-label Walmart Rewards Card offers unlimited 5x points on Walmart.com and Walmart in-app purchases, and 2x on purchases made in-store and at Walmart gas stations (including Murphy’s USA locations). Cardholders will also earn an introductory 5x on in-store purchases made with Walmart Pay during the first 12 months. Both cards come with no annual fee and no foreign transaction fees.

Capital One and Walmart are really targeting mobile app users and online shoppers with these bonus categories. Unfortunately, frequent in-store shoppers will only earn the best value from the cobranded card in the first year. However, the 5x on Walmart.com does include pick-up and delivery services. If you’ve been dying to try out online ordering with pick-up or delivery, now’s a great time to give it a test run. The card has no annual fee, so it won’t cost you anything in the long run if you end up switching to another card for your Walmart spending in the future.

The major differentiator of this card — in my opinion — is the redemption flexibility. You’ll be able to redeem points for much more than just Walmart purchases. You can also redeem for travel through Capital One’s travel portal, use points as a statement credit, redeem for gift cards and more. Capital One stated that to begin with, points will be worth a flat 1 cent each across all redemption options. So if you’re spending $500 a month at Walmart, that alone is $300 in rewards in one year to spend however you want.

Analysis

For anyone who shops at Walmart for groceries and other necessities, this isn’t a bad card to have in your purse or wallet — especially if you like to take advantage of the grocery pick-up and delivery options. Unlimited 5% rewards on basically all Walmart purchases throughout your first year can easily add up to a sizeable redemption, and unlimited earning on credit cards for groceries is hard to come by. Other cards designed for grocery purchases — including the Costco Anywhere Visa® Card by Citi, the Blue Cash Preferred® Card from American Express and even the American Express® Gold Card — have spending caps for how much you can earn on certain bonus categories throughout the year. Plus, figuring out which cards actually count Walmart in their supermarket/grocery store bonus category can get sticky because of merchant codes.

Image courtesy of Walmart
(Photo courtesy of Walmart)

The fact that Capital One is opening its travel portal up to cardholders as well is a nice addition. While there are certainly other cards out there that are better suited for larger travel purchases and dining (hello, Chase Sapphire Preferred Card and Chase Sapphire Reserve), not everyone wants to juggle five different credit cards with five different rewards structures and due dates. That makes these new Walmart cards an option to consider for families, college students and newbies to the points and miles game who want a simple rewards card that earns bonus points across a range of spending categories. Advanced points and miles gurus might not be interested in this card, but that’s okay. It’s not built for that audience.

Current Walmart credit cardholders will automatically have cards converted to this new program on Oct. 11, 2019, and will receive cards in the mail later this year and into early 2020. Current cardholders will also be able to take advantage of the introductory 5x on in-store purchases made with Walmart Pay through Oct. 14, 2020.

Bottom line

I was pleasantly surprised with the announced card details for the cobranded Capital One Walmart Rewards Mastercard and private-label Walmart Rewards Card. Cobranded retail credit cards can often offer weak rewards, but you’ll get a nice return on Walmart.com purchases with these cards, and the addition of other bonus categories and flexible redemption options puts this card ahead of other cobranded retail credit cards like the Costco Anywhere Visa and even the Amazon Prime Rewards Visa Signature Card in my book. If you’re looking for a top-tier travel card, this is obviously not the card for you. However, families, students and really anyone who’s looking for an all-around credit card for everyday grocery, restaurant and travel spending may find value with this new Walmart card.

Applications will become available starting Sept. 24, 2019. I also confirmed with a Capital One representative that this card will not be held to the Capital One rule where you can only have two consumer cards at any given time. That means this card is still fair game for applications, even if you already have two consumer Capital One cards like the Capital One® Savor® Cash Rewards Credit Card and Capital One® Venture® Rewards Credit Card.

Featured photo by TennesseePhotographer/Getty Images.

Capital One® Venture® Rewards Credit Card

SIGN-UP BONUS: 50,000 Miles

TPG'S BONUS VALUATION*: $700

CARD HIGHLIGHTS: 10X miles on stays booked and paid for through Hotels.com/Venture + 2x miles on everything else. Miles are now transferrable to over a dozen airline partners

*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.

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More Things to Know
  • Enjoy a one-time bonus of 50,000 miles once you spend $3,000 on purchases within 3 months from account opening, equal to $500 in travel
  • Earn 2X miles on every purchase, every day. Plus earn 10X miles on thousands of hotels, through January 2020; learn more at hotels.com/venture
  • Named ‘The Best Travel Card' by CNBC, 2018
  • Receive up to $100 application fee credit for Global Entry or TSA Pre✓®
  • Fly any airline, stay at any hotel, anytime; no blackout dates. Plus transfer your miles to over 12 leading travel loyalty programs
  • Miles won't expire for the life of the account and there's no limit to how many you can earn
  • No foreign transaction fees
  • $0 intro annual fee for the first year; $95 after that
Intro APR on Purchases
N/A
Regular APR
17.49% - 24.74% (Variable)
Annual Fee
$0 intro for first year; $95 after that
Balance Transfer Fee
$0
Recommended Credit
Excellent, Good

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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