Walmart cardholders’ credit may ultimately be affected by Walmart’s lawsuit against Capital One

In a lawsuit filed in a New York federal court on Friday, Walmart accused its credit card partner Capital One in a New York federal court. Walmart accused Capital One of failing to meet the customer service standards outlined in their contract and is seeking to end their partnership.

Walmart’s 2018 contract with Capital One required the credit card company to provide specific levels of service to Walmart and its customers. However, according to Walmart, Capital One repeatedly failed to meet several important requirements, giving Walmart the right to terminate the contract.

The lawsuit states that Capital One failed to meet customer care standards in at least five critical categories, including delivering replacement cards within five days and promptly posting transaction and payment information.

Walmart plans to offer a new credit card option to its customers and has assured cardholders that they can continue using their existing Capital One-issued Walmart credit cards without any service interruptions.

However, as is the norm when a store switches credit card issuers or ends a credit card program, there could be varying impacts on existing cardholders. In some cases, the existing credit card may be converted to a new card issued by the new issuer, with new terms and rewards. In other cases, the existing credit card may be closed and cardholders may need to apply for a new credit card if they wish to continue having a credit card with that store. These are two common and possible scenarios that could negatively affect existing Walmart credit cardholders’ credit if and when Walmart ends its partnership with Capital One.