Walmart Sues Capital One to End Credit Card Partnership Early, Do It Now

Author: Rakes

Walmart is suing Capital One over allegations that the bank failed to meet customer service standards for their credit card program in the United States.


The lawsuit was filed in the United States District Court for the Southern District of New York on Friday, seeking to terminate the deal worth over a billion dollars that was signed in 2018.


Capital One is the exclusive issuer of Walmart's private label and co-branded credit card program in the US.


Walmart claims that Capital One did not meet its retail partner's customer care standards in at least five critical service areas during a 12-month rolling period.


Capital One, however, disputed Walmart's allegations and stated that it has cured the servicing issues without any harm to customers, the program, or Walmart.


A Capital One spokesperson said that Walmart does not have the right to change the terms of the existing partnership mid-stream, and they will protect their contractual rights in court.


Walmart has not yet made any public statements on the issue. This is not the first time that Walmart has been involved in a legal battle with a credit card company.


In 2019, Walmart filed a lawsuit against Visa, alleging that the credit card company was charging the retailer excessively high fees for accepting debit and credit card payments.


The lawsuit against Visa was settled out of court in 2020, with Walmart agreeing to drop the lawsuit in exchange for undisclosed terms.


The outcome of the lawsuit against Capital One remains to be seen, and it is unclear how this will impact the retailer's credit card program.


This legal battle highlights the importance of customer service standards and the consequences of failing to meet them in business partnerships.