Walmart Rewards Mastercard review

How the Walmart Rewards Mastercard earns

The card has two rates. Walmart purchases earn 3% back in Walmart Reward Dollars, both in store and on walmart.ca, including Marketplace orders. Everything else earns 1%.

For example, a household that spends $400 a month at Walmart and $1,000 elsewhere earns $12 and $10 in Reward Dollars, or $22 a month. Over a year, that’s $264 in Reward Dollars to spend at Walmart.

The more of your budget that goes through Walmart, the closer your overall return gets to 3%. If Walmart is only a small part of your spending, you’re mostly earning 1%.

The welcome offer

New cardholders receive $25 in Walmart Reward Dollars. It’s a modest bonus, so the card’s value comes mainly from ongoing Walmart spending rather than the first-year offer. Check the current terms for when the Reward Dollars are credited to your account.

Using Reward Dollars

Reward Dollars never expire, and you can redeem them instantly at the register or on walmart.ca with no minimum. That makes them easy to use on a regular shop, a little at a time or saved up for a larger purchase.

The limit is that Reward Dollars can only be spent at Walmart. They aren’t cash, so if you don’t shop there regularly, they’re less useful to you than the same amount of cash back.

Walmart Delivery Pass users can also get up to six months of Delivery Pass free with an annual Delivery Pass subscription.

Fees, interest and the fine print

There is no annual fee. Purchases are charged 21.99% interest and cash advances 22.99%, but some applicants are approved at a higher standard rate of 26.99% instead of 21.99%, so check which rate you’re offered.

Confirm the foreign transaction fee with Fairstone Bank of Canada before using the card abroad or with US retailers. The card also lists no travel or purchase insurance, so use another card for trips and big-ticket items you want covered.

Who it suits, and who should look elsewhere

The card suits households that do a large share of their shopping at Walmart, in store or online, and are happy to keep their rewards there. A family that does its weekly grocery shop and household restocking at Walmart can have a meaningful share of its spending earn 3%.

If you shop at Walmart only occasionally, or you want rewards you can spend anywhere, a general cash back card will be more flexible. The 1% rate outside Walmart is modest on its own.

How it compares

The Wealthsimple Credit Card has no annual fee and no foreign transaction fee, and earns 1% cash back on everything. Outside Walmart, the two cards earn the same 1%, so the Walmart card pulls ahead only on Walmart spending, while Wealthsimple pays cash back you can use anywhere. For a household spending $400 a month at Walmart, that difference is $8 a month in Reward Dollars, or $96 a year.

The RBC Cash Back Preferred World Elite Mastercard pays 1.5% on all purchases for $99 a year. Before counting its fee, the Walmart card matches it once Walmart makes up a quarter of your card spending, since 3% on a quarter and 1% on the rest averages 1.5%, and it earns more as that share grows.

Before you apply

The recommended credit score is 660 or higher, and Fairstone Bank of Canada makes the final decision based on your full credit profile. Confirm the interest rate you’re approved at, the foreign transaction fee and the current welcome offer before you apply.