Big-box retailer Walmart Inc. WMT this week sued credit-card giant Capital One Financial Corp. COF in an effort to scrap a credit-card partnership between the two, according to The Wall Street Journal. Walmart’s lawsuit alleged that Capital One came up short on its service obligations, failing to replace lost cards or post some transactions to customers’ accounts in a timely manner — claims the credit-card provider said were “immaterial,” the Journal said. A Capital One representative told the Journal it would “vigorously protect our contractual rights in court.” The Journal, citing people familiar with the matter, said Walmart had wanted to renegotiate certain agreement terms such as loss-sharing, and wanted its fintech segment to have a role in issuing cards. But Capital One balked, the Journal said. Capital One has been issuing Walmart’s credit cards since 2019, and the contract extends to at least 2026, the Journal said.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.