Walmart has sued it’s co-branded credit card partner Capital One to terminate its partnership. Walmart is alleging that Capital One didn’t meet certain requirements of the partnership including:
- Not replacing lost cards promptly
- Not posting & settling transactions promptly
Walmart had previously expressed a desire to renegotiate some of the terms of the contract, including the loss sharing agreement. Walmart also wants it’s fintech arm (ONE Finance) of the business to be involved in the issuing of the cards. The Capital One/Walmart card was first launched on September 24, 2019 and the contract is due to run until at least 2026 with provisions for the contract to be extended.
Walmart previously sued Synchrony (who issued the Walmart card before Capital One) claiming that it was financially harmed due to Synchrony’s underwriting standards.
William Charles
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