Is There a Walmart Credit Card With Cash Back on Wal Mart Purchases

December 18, 2021 Post a Comment

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For Walmart loyalists–especially those who typically order online—the Capital One® Walmart Rewards® Card* deserves a spot in your wallet. But if you only shop there occasionally, another card will likely be a more rewarding choice overall.

Capital One® Walmart Rewards® Card

Welcome Bonus

5% cash back for the first 12 months

Regular APR

17.99% - 26.99% variable

Pros

Up to 5% cash back
2% cash back at restaurants and travel
No annual fee or foreign transaction fee
Applicants with average credit may qualify

Cons

Base reward rate of 1% could be better
High to very high APR, depending on creditworthiness
No intro APR offer

Highlights

Earn 5% cash back in Walmart stores for the first 12 months when you use your Capital One® Walmart Rewards
17.99% – 26.99% Variable APR on purchases and balance transfers
No annual fee
5% back on Walmart.com & in the Walmart app, including Grocery Pickup and Delivery
2% back on restaurants and travel, and at Walmart Stores, Walmart & Murphy USA Fuel Stations
1% back everywhere else Mastercard® is accepted
Ways to redeem rewards: Use rewards during checkout at Walmart.com, redeem for a purchase, get an account credit, redeem for gift cards from Walmart or other retailers, or redeem for flights, hotels, and car rentals
$0 fraud liability: If your card is ever lost or stolen, you won't be responsible for fraudulent purchases
Capital One Mobile app: Pay your bill, get real-time purchase notifications, lock or unlock your card and more.

Introduction

The Capital One® Walmart Rewards® Card* is an ideal choice for those who do a significant amount of shopping at Walmart. Although the superstore is already known for its everyday low prices, using the Walmart credit card to pay for your purchases will snag you even more savings. You'll earn a fat 5% cash back on purchases made from Walmart.com, whether you're picking your merch up yourself or having it delivered. You'll get 2% cash back for in-store purchases as well as restaurant and travel spending and 1% cash back on all other purchases.

But there is a catch and that is the online purchase requirement in order to score that big 5% savings. Unlike this card's likely biggest competitor, the Amazon Prime Rewards Visa Signature Card* which primarily functions as an online store, Walmart is rooted in having a significant physical presence, with over 10,000 stores around the world.

So this means that if you were planning on doing your grocery shopping at your local Walmart, buying some garden supplies, new clothes or anything else on your list, you'll only earn 2%. And if you're mostly going to be earning 2% on your Walmart spending, then you'd more than likely be better off with a card that earns a net 2% on all of your spending, not just at Walmart, restaurants and on travel.

If you're that combination of die-hard online shopper and Walmart lover, this card could be a fit, otherwise consider a card that is likely to reap greater rewards.

At a Glance

No annual fee
Welcome bonus: Earn 5% back in Walmart stores for the first 12 months when you use your Capital One Walmart Rewards Card with Walmart Pay - the quick and secure way to pay with your phone at Walmart
5% cash back on Walmart.com, Walmart app, grocery
pickup, and delivery
2% cash back on dining and travel
2% cash back on gas at Walmart and Murphy USA
1% cash back on all other purchases

Rewards

The Capital One Walmart Credit Card earns rewards at the following rates:

5% back on Walmart.com & in the Walmart app, including Grocery Pickup and Delivery; Earn 2 % on restaurants and travel, and at Walmart Stores, Walmart & Murphy USA Fuel Stations; Earn 1% back everywhere else Mastercard® is accepted

If you already go straight to your Walmart app when you need to shop, you'll be rewarded with a generous 5% cash back on your purchases. This includes grocery pickup and delivery, which makes the Walmart Rewards card somewhat unique. Most stores that have groceries as a bonus category will exclude superstores such as Walmart in their fine print. That said, if you prefer in-person shopping, your rewards will be significantly less lucrative after the first year. If you connect your card to Walmart Pay, and pay for your in-store purchases that way, you will earn 5% cash back for the first 12 months, then 2% thereafter.

Earning 2% cash back on dining, travel, and co-branded gas stations could be achieved with a straight cash-back card and 1% cash back on other purchases is not competitive compared to the best cash-back credit cards.

Redeeming Rewards

The simplest way to apply the rewards from the Walmart Rewards card is as a statement credit. You can also use the rewards to redeem during online checkout at Walmart.com, to pay with points at checkout via Walmart Pay, as an eraser for Walmart purchases, to book travel through the Capital One travel center or for gift cards. Considering the value is identical regardless of method, redeeming for a statement credit is the way to go as it can be applied to any purchase made on the card.

Rewards Potential

To determine the rewards potential of credit cards, Forbes Advisor uses data from various government agencies to determine both baseline income and spending averages across various categories. The 70th percentile of wage-earning households bring in $100,172 annually, and we base spending on that number.

The Walmart Credit Card offers 5% cash back for the first 12 months on all Walmart Pay purchases. For this review, we are assuming that all Walmart Purchases will earn 5% cash back, even after the first year, since items ordered through the app are easily available for store pickup. In addition, Forbes Advisor is assuming that all gas purchases are made at a Walmart-owned station (which includes Murphy USA).

We estimate that our sample household spends $5,687 on groceries, earning $284.35 in cash back per year. Earning 2% cash back on $4,406 in restaurant purchases comes to $88.12, while $3,185 in travel earns $63.70 back. Spending $2,687 on gas earns $53.74 at 2% back, and the $10,445 in remaining spending would add an additional $104.45 back, bringing the total annual cash back to $594.36.

Other Card Benefits

As a World Elite Mastercard, the Capital One Walmart card comes with several perks and benefits:

Price Protection: Get reimbursed for the price difference, up to $250, if you see an eligible item that you purchased with your Capital One Walmart card at an eligible lower price within 120 days of when you purchase it. Maximum of four claims per year.
Extended Warranty: Covers up to an additional two years on an existing warranty of two years or less and up to $10,000 for repair or replacement of the item.
Premier Access: Get access to premier culinary experiences, sports events and concerts.
Cell Phone Insurance: Only offered on the World Elite version of the card, coverage up to $800 per eligible claim and $1,000 per 12-month period. Each claim is subject to a $50 USD deductible. Coverage is limited to two claims per 12-month period.
Auto Rental Insurance Coverage: Get secondary coverage for damage or theft to an eligible when you pay for entire rental with your card or decline coverage at the rental counter.
Concierge Service: At no cost to you, a Capital One concierge will help you choose a restaurant in an unfamiliar city, book event tickets, or make travel reservations.
Trip Cancellation/Interruption Insurance: If your trip is canceled or interruption for a covered reason, like an eligible medical issue, receive up to $1,500 in reimbursement for the cost of your common carrier charges.

Fine Print

Interest Rates

Regular APR: 17.99% - 26.99% variable
Purchase Intro APR: N/A
Balance Transfer Intro APR: N/A

Fees

Annual Fee: $0
Balance Transfer Fee: 3% of the amount of each transferred balance that posts to your account at a promotional APR that we may offer you.
Cash Advance: Either $10 or 3% of the amount of each cash advance, whichever is greater
Foreign Purchase Transaction Fee: $0

How the Card Stacks Up

Capital One® Walmart Rewards® Card* vs. Amazon Prime Rewards Visa Signature Card*

If you're looking to pledge loyalty to a company and want a credit card that rewards you for doing so, the most similar card to the Walmart credit card is the Amazon Prime Rewards Visa Signature Card*. The Amazon Prime Visa card, which charges no annual fee but requires a $119 annual Prime membership ($59 for students), earns 5% cash back in rewards at Amazon.com and Whole Foods Market with an eligible Prime membership, 2% cash back at restaurants, gas stations and drugstores and 1% on all other purchases.

It also offers free same day, one-day and two-day shipping on thousands of items with the "Prime" shipping offer. Walmart offers free two-day shipping on thousands of items, too, but that's for everyone, not just cardholders.

The two cards' structures and perks are so similar that it essentially comes down to one question: Do you prefer to do most of your shopping with Amazon or with Walmart? If you're not sure you have a preference, consider a general purpose cash-back card instead.

Capital One® Walmart Rewards® Card* vs. Costco Anywhere Visa® Card by Citi*

Costco often competes with Walmart in major markets, and its co-branded card, the Costco Anywhere Visa Card offers strong cash-back rewards too. The Costco card has no annual fee but does require a Costco membership to apply ($60 or $120, depending on level). While it doesn't provide the 5% incentive for online purchases that the Walmart Rewards card does, it offers better rewards in other categories: 4% cash back on eligible gas for the first $7,000 per year and then 1% thereafter, 3% cash back on restaurants and eligible travel purchases, 2% cash back on all other purchases from Costco and Costco.com and 1% cash back on all other purchases

One potential drawback: You can only redeem your rewards once a year and it has to be in person at a Costco customer service counter. The rewards for online purchases are significantly less than the Walmart card but the gas, dining and travel earnings are higher. Whether to choose this card over the Walmart card will depend on how and where your household spends.

Capital One® Walmart Rewards® Card* vs. Citi® Double Cash Card

If the idea of having to remain loyal to just one store makes your head hurt, consider a workhorse like the Citi Double Cash, which earns an 2% cash back on all purchases—1% when purchases are made and another 1% when they're paid off. It carries no annual fee.

While it doesn't earn an extra 5% back on purchases at Walmart or elsewhere, earning a steady 2% on everything could match or exceed the extra rewards on Walmart purchases. If you want cash back (instead of points) and only one card in your wallet, a card earning 2% cash back is likely the best you can do. Another idea? Pair the two cards together and use the Walmart Rewards card exclusively at that store and use the 2% cash back card for all other spending.

Compare Capital One Walmart Rewards Card With Other Cards

Is The Card For You?

If you spend regularly at Walmart, especially online, there is no other card that offers better cash-back rewards on purchases from this retailer. However, there are cards offering 2% cash back on all purchases, exceeding this card's bonus in specific categories like gas, groceries, restaurants and travel. Depending on your spending habits and the number of cards you want to manage, the Walmart card could be a good addition to your wallet, but you may want to consider a more well-rounded card instead.

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Is There a Walmart Credit Card With Cash Back on Wal Mart Purchases

Source: https://www.forbes.com/advisor/credit-cards/reviews/capital-one-walmart-rewards-card/

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