Walmart just announced a new rewards credit card program

Walmart has just unveiled a new rewards credit card program to better compete with retailers like Amazon and Target.

The Capital One Walmart Rewards Credit Card Program features two new credit cards: the co-branded Capital One Walmart Rewards Mastercard and the private-label Walmart Rewards Card.

Both credit cards will be available to consumers beginning September 24.

Walmart introduces 2 new rewards credit cards 

The Capital One Walmart Rewards Mastercard can be used at Walmart and anywhere else that Mastercards are accepted. Here are some of the key features:

• 5% back on purchases at Walmart.com, including Walmart Grocery Pickup and Delivery
• 5% back on in-store purchases when using Walmart Pay for the first 12 months after approval as a special introductory offer
• 2% back on Walmart purchases in stores outside of the introductory offer
• 2% back on restaurants and travel
• 1% percent back everywhere else
• No annual fee and no foreign transaction fees
• The ability to redeem rewards at any time for travel, gift cards, during online checkout at Walmart.com, for recent purchases, and statement credits

Meanwhile, the Walmart Rewards Card is a store credit card that can only be used to shop at Walmart. It offers several of the same perks as the Mastercard:

• 5% back on purchases made at Walmart.com and on the Walmart app
• 5% introductory offer for using Walmart Pay in stores for the first 12 months after approval
• Unlimited 2% back on Walmart purchases in stores outside of the introductory offer
• 2% back at Walmart Fuel Stations

How do these cards compare? Amazon and Target’s credit cards offer 5% back on store purchases every day, so Walmart’s cards aren’t as competitive. After the introductory offer, Walmart shoppers only earn 2% back on in-store purchases.

Current Walmart cardholders will be converted to the new cards starting October 11. Expect a new card in the mail in November.

Walmart adds that current cardholders will also be eligible to earn 5% cash back when they use their card with Walmart Pay for in-store purchases through October 14, 2020.

Once the cards are available, consumers can apply at Walmart.com, CapitalOne.com or through the Walmart app.

More Clark.com stories you may like: 

• Clark Howard: Here’s my philosophy on credit cards
• Best rewards credit cards: Team Clark’s picks
• These are the 4 credit cards in Clark Howard’s wallet