Walmart Credit Card Review (Canada) – How Does it Stack Up?

For one reason or another, I’ve been getting a number of emails looking for my opinion on the Walmart credit card. Generally, I prefer credit card rewards to be flexible, like a cash back credit card, rather than being locked into a single vendor.

However, there are some vendors that offer good value, like Loblaws and their World Mastercard which offers a 2% return when using the card in their stores. Or Shoppers Drug Mart and their Optimum Points which can offer value when used in conjunction with 20X the points days.

Needless to say, there is a lot of competition in the credit card landscape. Lets see how the Walmart credit card stacks up.

The Benefits

So what exactly does this credit card offer?

  • No Annual Fee;
  • $25 in bonus Walmart Rewards when using your card for the first time (must go paperless too);
  • 1.25% of your purchases in Walmart towards Walmart Rewards;
  • 1% of all other purchases towards Walmart Rewards;
  • Redeem rewards instantly at a Walmart cash register in $5 increments.

Basically if you spend $100 at Walmart, you’ll get $1.25 towards a future Walmart purchase.  When making purchases elsewhere, you’ll get 1% towards a future Walmart purchase.  In essence, it’s a cash back card but the card holder is locked into spending at Walmart.  It’s not a bad system for die hard Walmart shoppers.

The Drawbacks

Ah the drawbacks, and there are a couple.  In addition to being locked into spending your credit card rewards at Walmart, one big surprise is that this credit card lacks an insurance package.  Most decent free credit cards will at least offer purchase theft assurance and extended warranty.  Actually, they do offer extended warranty – but at a cost of $3.99/month (seriously?).

Final Thoughts

To summarize, the Walmart credit card is a 1% cash back card that jumps to 1.25% cash back on in-store purchases.  The catch is that the rewards must be spent in a Walmart and no insurance coverage is offered.  While it’s great that this card has no annual fee and offers value to dedicated Walmart shoppers, there are other free credit cards that are much more competitive.

For example, some may argue that this card is better than the Smart Cash card since the 2% for gas and groceries cannot be earned for groceries at Walmart.  So Walmart card users will get 1.25% cash back on their groceries vs 1% on the Smart Cash Card.  This is a valid argument against the Smart cash card, but when you combine the fact that Smart Cash users will get 2% back on gasoline and any other grocery shopping (up to $400/month), and the decent insurance package (price protection, purchase assurance, car rental insurance, and extended warranty), the Smart Cash is still offers more value.

Another example is the Capital One Aspire Cash Platinum card.  This free capital one card will give you 1.25% cash back on all spending, in addition to a strong insurance package (price protection, purchase assurance, car rental insurance, baggage delay and extended warranty).  This is an easy pick over the Walmart card.

Overall, the Walmart card can offer value to exclusive Walmart shoppers, but there are better free credit cards out there.

I've Completed My Million Dollar Journey. Let Me Guide You Through Yours!

Sign up below to get a copy of our free eBook: Can I Retire Yet?

Posted in

FT

FT is the founder and editor of Million Dollar Journey (est. 2006). Through various financial strategies outlined on this site, he grew his net worth from $200,000 in 2006 to $1,000,000 by 2014. You can read more about him here.
Subscribe
Notify of

This site uses Akismet to reduce spam. Learn how your comment data is processed.

42 Comments
Inline Feedbacks
View all comments
Mayank Tripathi
2 years ago

My name is Mayank Tripathi, a holder of walmart rewards mastercard.
In the beginning of this year 2018 I received a call from Wallmart banking service endorsing a ”Balance protection plan” that I remember in the best of my attentive mind, denying and saying a clear No to. A month later on 13th March, I was surprised to find a $11.51 in my mastercard statement titled as ”Bal Insurance”
When I called Walmart to ask why I have been charged this amount, they said that I have been enrolled in the plan. I begged them to cancel the plan because I have never consented to it and the person on phone agreed and said that I have been taken out of the plan. I was resting assured after this that I will get the refund that I was charged. I failed to check my mastercard statements in detail for the next few months and today I found that I have been getting charged for the same balance protection plan every month on 13th. I called the customer care to complain but they said they cannot do anything and its between me and the bank. I asked to speak to a supervisor and he said the same. They failed to tell me how a 3rd party is deducting money from my account without my information and consent regarding a product that walmart wanted to sell me. They gave me the phone number for Canada life insurance and shrugged their shoulders. When I called Canada Life Insurance they told me that according to their reports, I (the customer) has called in and requested the plan from walmart. I was shocked to hear this because I did call the walmart banking but it was to cancel the plan and not ask for it. They said they can only refund me the amount charged for the last 3 months out of courtsey and will not refund the 6 months. When I asked for the box files (call recordings) of me speaking to the customer service and clearly saying NO to the plan they said only Ombudsman has the right to access it if they are willing to investigate.
Following are the details of the people i have spoken to so far:
Walmart customer care rep named Dean at around 12:10 pm today 15th Nov.
Walmart Customer care Supervisor Marvin at 12:30 pm today 15th Nov. (No reference number or follow up no. was given regarding this call despite of me asking for it)
Canada Life Insurance agent Scot at around 12:35 pm today 15th Nov.
call reference no# 2896945
I have refused to accept and called to cancel this plan TWO times despite of which i was enrolled and charged for 9 months.

Wayne
2 years ago

All this effort on your part, and what you should have done instead of all this, is cancel that crappy Walmart Mastercard, and get a credit card from a bank that doesn’t play games like this.
The Walmart Mastercard is a horrible card, has horrible customer service (which you’ve now found out), and is just not worth the headache.
Cancel it!

Irwin Jackson
2 years ago

Update to my March 7, 2018 post. The count for cut up Walmart Mastercards with the help of family and friends as reached 137. I don’t know what the final total is going to be, but I hope someone at Walmart’s Canadian office sees this and realizes that when they offer fraud protection, they should live up to it. TD Visa had no problem wiping the slate clean as soon as they were notified. Stay away from this card!!!!!!!!!

Md Hasan
2 years ago

Don’t take this card. worst card ever get in my life

Irwin Jackson
2 years ago

Don’t get this card! They do not give you any fraud protection. My wife had her pin number and credit cards stolen at the local Walmart Supercentre and after the thieves put through $500 cash advances at 1:30 am their customer service insisted that she pay the balance. Her TD Visa card was also stolen and used and within hours the balance were wiped clean and new cards were issued. We had a party and cut up 16 cards with family and friends. Soon to be 100 if everyone follows through with their vow to pass it on. Stay away from this card!

John
2 years ago

For anyone wondering. This is a starter credit card. If you have one already do not bother. It’s great if you have no credit history or low credit. Don’t use the cash feature and keep your balance paid off. The limit grows very fast. I went from a 3500 limit to a 10000 limit in a year and a half. Just be responsible. Anyone who had issues activating most likely did not follow the instructions properly. Sometimes glitches do happen but more often than not it’s a user issue.

RK
3 years ago

If you need to contact Walmart Mastercard customer service, it sucks. There were fraudulent charges on my account and they could resolve it even after 2 months of complaining and was under investigation. In the end, they were asking me if I have outlook.com email account from which fraudulent charges were made, etc., so not sure why they were sitting on the issue for 2 months. Why they could not contact the merchant and sort it out, I do not know. I told Walmart Mastercard to close the dispute, contacted the merchant then and got refund from them. Walmart Mastercard is very slow to move when it comes to fraudulent charges on the account.

smayer97
3 years ago

Wife signed up for this card a few years ago…got statements but never got the card…called and still never got the card…so could never take advantage of the sign-up bonus. Waste of time and gave up.

Anyways, there are far better free cash back cards out there. Nothing to see here.

(If you find this reply helpful, please be sure to click “Like”, so others will know, thanks.)