Retail giant Walmart sues Capital One over credit card failures
US retail behemoth Walmart is suing US financial services giant Capital One as it looks to terminate its credit card contract with the bank.
Walmart sues Capital One
In a lawsuit filed in the US District Court for the Southern District of New York, Walmart alleges Capital One failed to meet several contractual obligations and customer service standards.
The retail giant alleges Capital One did not meet customer care standards in five categories, including failing to issue replacement cards and promptly process payments.
According to Walmart, Capital One acknowledged these shortcomings in February.
The partnership began in 2018 with Capital One tapped by Walmart to issue the retailer’s credit cards. According to The Wall Street Journal, that deal is supposed to end in 2026.
Capital One says it will “vigorously protect our contractual rights in court”.
According to the WSJ, Walmart told Capital One it wanted its fintech unit Hazel to be involved in card issuance but Capital One was unwilling to comply with Walmart’s requests.
The retailer’s banking platform, One, is being tested with employees before being rolled out to customers.
