Most retail chains offer ways for insiders to save more money. That usually comes at a price,
Costco (COST) , for example, offers its Executive membership at twice the price of its basic Gold membership, After its recent price increase, that means people will pay $130 for the top-tier membership which comes with 2% cash back up to $1,250.
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That's a good deal if you shop regulary at the warehouse chain, especially because it does not require you to have a branded credit card. Most discount programs involve more than just being a loyal customer.
At Target (TGT) , that's not entirely the case. You get some rewards simply by signing up for the Target Circle program. Those rewards have gotten a little more vague as the chain has dropped the direct cashback portion of the program.
In most cases, however, the biggest rewards go to people who sign up for a branded credit card. In the case of Target, people who hold one of its cards get a very meaningful discount.
"You will receive 5% off purchases paid for with your Target Circle Card (debit, credit, and reloadable) at Target stores and Target.com, except on prescriptions and other CVS pharmacy products; Target GiftCards; Visa, Mastercard and American Express prepaid cards," the retailer shared on its website.
Amazon.com (AMZN) offers a similar deal with its Chase credit cards. Members get 3% off on most purchases, and 5% if they're also Prime members.
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Walmart ends it credit card deal
Walmart (WMT) had a branded credit card with Capital One (COF) . That deal ended on May 24. At the time, however, the two companies had allowed existing customers to keep their discounts at the retail chain.
"While Capital One and Walmart have ended their card partnership, nothing changes today for cardholders – cardholders can continue to earn and redeem rewards, and previously accrued rewards will retain their value. Until informed otherwise, cardholders can also continue to use their Capital One Rewards® Card wherever Mastercard is accepted and the Rewards Card for purchases at Walmart."
Walmart shared similiart news on that day.
"The partnership between Capital One & Walmart has ended. Capital One Walmart Rewards is no longer accepting applications. Existing cardholders can continue to use their card and earn 5% cash back on their Walmart.com purchases until otherwise informed by Capital One," Walmart shared on its website.
That deal has ended, and Capital One shared a new notice to holders of its Walmart credit cards.
"The partnership between Capital One and Walmart® is ending, and we will be unable to continue to offer the Capital One Walmart Rewards Card and the Walmart Rewards Card. For eligible customers who currently have one of these cards, we're excited to inform you that your card will be replaced with a Capital One Quicksilver Mastercard," the bank shared.
Capital One Quicksilver cardholders do not get any specific deals at Walmart.
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Costco, Target, and Amazon have an edge
It seems likely that Walmart will add a new credit card partner. Right now, however, it does not have one. That gives Amazon, Costco, and Target — all of which have lucrative credit card deals for members — an advantage.
If you can get a store-branded credit card which comes with a discount at a specific retailer, that may tip a consumer into becoming a customer of that chain.
The end of Walmart's deal with Capital One was ugly with the retailer suing the bank in order to get out of the deal.
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Walmart sued Capital One in April 2023, seeking to end its credit card partnership with the McLean, Va.-based lender.
"Walmart alleged Capital One repeatedly failed to meet several contractual obligations of the card partnership," RetailDive reported.
These included "promptly issuing replacement cards to customers as well as processing their payments and posting transactions to accounts in a timely manner."
With the termination of its branded credit cards, Walmart has ceded an advantage to its chief rivals which offer credit cards that give members a discount. Walmart has not commented on any potential new credit card partnership.
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