Walmart and Capital One settle credit card partnership dispute

Retail giant Walmart and financial services provider Capital One have reached a settlement in their legal dispute over a credit card partnership, according to a joint letter filed in a New York federal court.

The lawsuit, which began in April 2023, has now been resolved, with all claims and counterclaims settled.

The conflict arose when Walmart accused Capital One of failing to meet customer service standards outlined in their 2018 agreement. Specifically, Walmart claimed that Capital One was too slow in posting transactions and replacing lost cards.

In March, US District Judge Katherine Polk Failla granted partial summary judgement to Walmart, agreeing that the retailer could terminate the agreement if Capital One failed to meet any customer service standard five or more times in a 12-month period.

The partnership, which began in 2019 and made Capital One the exclusive issuer of Walmart-branded consumer credit cards, ended last month. Capital One has stated that eligible Walmart-branded cards will be converted to other cards, ensuring cardholders do not lose accrued rewards.

While the terms of the settlement remain undisclosed, the resolution marks the end of a significant dispute in the retail banking sector. Neither Walmart nor Capital One have provided immediate comments on the settlement.

This development comes as Capital One recently agreed to acquire credit card rival Discover Financial Services in an all-stock transaction valued at $35.3 billion, further shaping the landscape of the credit card industry.

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