Walmart and Capital One partner to launch two new credit cards

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Walmart is teaming up with Capital One to release two new rewards credit cards: the Capital One Walmart Rewards Mastercard and the Walmart Rewards Card.

Here are some of the key features of both cards.

  • No annual fee
  • 5% back on purchases at Walmart.com, including Walmart Grocery Pickup and Delivery
  • Intro offer: 5% back on in-store purchases when using Walmart Pay for the first 12 months (2% if you don’t use Walmart Pay during that time)
  • 2% back on Walmart purchases in stores after the first 12 months

The Capital One Walmart Rewards Mastercard tacks on a few more perks.

  • No foreign transaction fees
  • 2% back on restaurants and travel purchases
  • 1% percent back on all other purchases

If you’re a frequent Walmart shopper, these new cards could offer a good value, particularly in the first year. But make sure the type of Walmart shopping you do lines up with these card benefits even after the introductory 5% Walmart Pay offer.

You can apply for either card starting Sept. 24, and current Walmart cardholders will be transitioned to one of the new cards beginning in October.

Want to know more?

What’s new about these cards?

What really makes the new Walmart credit cards stand out is the fact that they offer a 5% back in-store intro for the first year, and 5% back on online purchases — including groceries.

If you’re already doing most of your shopping and grocery shopping with Walmart, this could simplify the rewards process for you. Because unlike with other cards that offer 5% cash back, you won’t need to keep track of rotating cash back categories to get rewarded for shopping at Walmart. And there’s no cap on the 5% cash back you can get with the Walmart rewards card, which can be a limitation with some other cash back cards.

At the same time, if you already have a card that offers an unlimited 5% cash back for online shopping or groceries, or you’re not a Walmart loyalist, the new Walmart cards might offer less value to you.

What else should you keep in mind?

Before deciding whether or not to apply for one of the new Walmart cards, it’s important to think about how you’ll use the card if you’re approved. Capital One is providing a number of ways to redeem rewards with the card, including for travel with the Capital One Walmart Rewards Mastercard. But keep in mind that it’s not worth spending more than you’d typically spend on purchases just to get extra rewards.

Also, like with any credit card, you’ll be charged interest if you don’t pay your monthly statement balance in full by the due date. And of course, if you do apply for one of these cards, make sure you read all the terms carefully and know your rights as a cardholder.