The Walmart Credit Card Rewards Structure
Walmart offers two credit cards: the Walmart MoneyCard (a prepaid card) and the Walmart Rewards Card (a traditional credit card issued through Capital One). The Walmart Rewards Card is the one with cash back rewards. You earn 3% cash back on Walmart.com purchases, 2% at Walmart gas stations and Walmart stores, and 1% everywhere else you use the card.
The cash back appears as a statement credit on your monthly bill. You do not receive it as a separate payment — it reduces what you owe. If you spend $100 at Walmart and earn $2 in cash back, your statement shows a $98 balance instead of $100.
There is no annual fee. The card has a variable interest rate, which means the rate can change over time based on market conditions and your creditworthiness. You can check the current rate range on Walmart's website or by calling the number on the back of the card.
Key Takeaways
- The Walmart Rewards Card earns 3% cash back at Walmart.com, 2% at Walmart stores and gas stations, and 1% on all other purchases.
- Cash back appears as a credit on your bill each month, not as a separate deposit to your bank account.
- There is no annual fee, but you pay interest on any balance you carry from month to month.
- The card is issued by Capital One and requires a credit check, so approval depends on your credit history.
- Walmart also offers a MoneyCard (prepaid) and a Sam's Club card if you shop at Sam's Club instead.
When the Cash Back Actually Saves You Money
The rewards only save you money if you pay off your balance in full each month. If you carry a balance and pay interest, the interest charges will almost certainly exceed the cash back you earn. For example, if you spend $500 at Walmart and earn $10 in cash back, but then pay 24% annual interest on a $500 balance for three months, you will pay roughly $30 in interest — meaning the card cost you $20 instead of saving you $10.
The math works in your favor only if you treat the card like a debit card: spend money you already have, then pay the full statement balance when the bill arrives. If you cannot do that consistently, the cash back is not worth the interest risk.
The 1% cash back on non-Walmart purchases is also modest. A general rewards card from another issuer might offer 1.5% or 2% on all purchases. The Walmart card's advantage is the higher rate at Walmart itself, not the baseline rate elsewhere.
How the Card Affects Your Credit Score
Opening the card triggers a hard inquiry into your credit report, which temporarily lowers your score by a few points. The inquiry stays on your report for about two years but stops affecting your score after roughly six months.
Once the card is open, your credit score can move in two directions. If you keep your balance low relative to your credit limit and pay on time, the card will help your score over time by showing you can manage credit responsibly. If you carry a high balance or miss payments, the card will hurt your score.
The card also becomes part of your credit mix — the variety of credit types you hold (credit cards, loans, etc.). Having multiple types of credit can slightly improve your score, but only if you manage all of them well.
The Walmart MoneyCard: A Different Product
The Walmart MoneyCard is not a credit card. It is a prepaid debit card that you load with your own money. You do not earn cash back, and there is no credit check to open one. There are monthly fees (currently $1.50 per month for the basic version, though Walmart sometimes waives this for direct deposit users), and you may pay additional fees for ATM withdrawals or customer service calls.
The MoneyCard makes sense if you want a card without a credit check or if you want to avoid the temptation to overspend. It does not build your credit history the way a credit card does, because prepaid cards are not reported to credit bureaus.
Comparing the Walmart Card to Other Grocery and Gas Rewards
Many grocery stores and gas stations offer their own rewards programs that do not require a credit card at all. Walmart itself has a free rewards program (Walmart+) that gives members discounts on fuel and free shipping on online orders, though it costs $98 per year or $12.99 per month.
Some general rewards credit cards offer higher cash back on groceries and gas than the Walmart card does. For example, a card that gives 2% cash back on all purchases would match the Walmart card's 2% rate at Walmart gas stations but also earn 2% at other grocery stores and gas stations. The trade-off is that those cards often have annual fees ($95 to $450 depending on the card), which the Walmart card does not.
If you shop almost exclusively at Walmart, the Walmart Rewards Card's 3% rate on Walmart.com and 2% in stores is hard to beat without paying an annual fee elsewhere. If you split your grocery and gas spending across multiple stores, a general rewards card or a store-specific rewards program might serve you better.
What Happens If You Miss a Payment
Missing a payment on the Walmart Rewards Card works the same way as missing a payment on any credit card. Capital One will charge you a late fee (currently up to $40, depending on your account terms), and the missed payment will be reported to credit bureaus after 30 days of non-payment. A single late payment can lower your credit score by 100 points or more.
If you miss multiple payments, Capital One may increase your interest rate to a penalty rate, which can be as high as 29.99% depending on your account terms. They may also freeze your account or send your debt to a collection agency if the account goes unpaid for several months.
If you are struggling to pay, contact Capital One before the payment is due. They sometimes offer hardship programs that lower your interest rate or allow you to pause payments temporarily.
How to Decide If the Card Is Right for You
The Walmart Rewards Card makes sense if all of these are true: you shop at Walmart regularly, you can pay off the full balance every month, you do not currently have too many credit inquiries on your report, and you want to build or maintain good credit history. If you meet all four conditions, the card's lack of annual fee and decent cash back rate make it worth considering.
The card is not a good fit if you carry a balance month to month, if you shop at multiple grocery stores and gas stations equally, or if you are trying to minimize credit inquiries because you plan to explore for a mortgage or loan soon. In those cases, a general rewards card, a store-specific rewards program, or straightforward paying cash will serve you better.
Frequently Asked Questions
Can I use the Walmart Rewards Card at Sam's Club?
No. The Walmart Rewards Card works at Walmart stores, Walmart.com, and Walmart gas stations only. Sam's Club is a separate company (though owned by Walmart Inc.), and it has its own credit card. If you shop at Sam's Club, you would need the Sam's Club Mastercard to earn rewards there.
What is the credit limit, and can I request a higher one?
Your credit limit depends on your credit score and income at the time you open the account. Capital One does not publish a standard limit. You can request a credit limit increase after you have held the card for a few months and made on-time payments. Requesting an increase may trigger a hard inquiry, which temporarily lowers your score.
Do I lose my cash back if I return an item?
Yes. When you return an item, the refund reverses the original purchase, including the cash back you earned on it. The cash back credit is removed from your account at the same time the refund is processed.
Is there a sign-up bonus?
Walmart occasionally offers sign-up bonuses (such as $20 or $50 in cash back after your first purchase), but these promotions change frequently and are not always available. Check Walmart's website or call Capital One to see if a bonus is currently being offered.
What happens to my rewards if I close the card?
Any cash back balance on your account at the time you close the card will be applied as a statement credit. You cannot earn new rewards after the card is closed, but existing rewards are not forfeited.