Retailer Walmart has sued US-based bank Capital One in an effort to end their credit-card partnership. Walmart’s lawsuit alleges that Capital One didn’t meet certain terms of the card partnership contract.

The case was filed in the Southern District of New York. The accusations The retailer alleged that Capital One didn’t provide the customer service it was obligated to offer, such as replacing lost cards promptly. It also alleged that Capital One didn’t promptly post some transactions and payments to cardholders’ accounts.

Capital One’s defence A Capital One spokesman said that these immaterial servicing issues were cured by Capital One pursuant to the terms of the agreement, without harm to customers, the programme, or Walmart. The spokesman added that Walmart’s lawsuit ‘is an attempt to renegotiate the economic terms of the partnership it agreed to just a few years ago, or end the deal early. ’ Further, Capital One ‘will vigorously protect its contractual rights in court.

’ Walmart executives had recently told Capital One executives that they wanted to renegotiate some terms of the card contract, according to people familiar with the matter. Walmart’s requests included adjusting the loss-sharing agreement, the people said. That agreement pertains to the portion of charge-offs that the retailer and the bank each shoulder.

Walmart looks to issue its own cards Walmart also conveyed that it wanted its fintech arm to be involved in issuing cards. Capital One wasn’t willing to accept Walmart’s demands, according to sources cited by The Wall Street Journal. Capital One began issuing Walmart’s credit cards in 2019 and the contract runs until at least 2026.

Walmart’s officials are looking forward to bringing their customers a new credit card option that provides meaningful benefits and rewards soon. Existing cardholders would be able to continue using their cards in the meantime. Before Capital One, Walmart partnered with Synchrony Financial to issue its cards for roughly 20 years, and decided to ditch it’s partner in 2018.

A few months later, Walmart sued Synchrony, alleging that it was being financially harmed by Synchrony’s underwriting standards. Synchrony disputed that claim and Walmart later agreed to dismiss the lawsuit. .