The news: Walmart sued Capital One to terminate their credit card partnership, which includes both a co-brand Mastercard and a private-label card, according to The Wall Street Journal. The retailer alleged that Capital One didn't meet the terms of their contract, citing issues with customer service, card replacement, and transaction posting.
Walmart reportedly hopes to either renegotiate the economic terms of the partnership—including those related to loss-sharing—or end the program early.
The responses: Walmart told the Journal that it's ending its relationship with Capital One and looks forward to providing a new option soon. Capital One countered that it had cured issues Walmart raised in the suit "pursuant to the terms of the agreement, without harm to customers, the program, or Walmart."