Walmart credit card

Walmart Canada recently revamped its two in-house credit cards. The updates move the cards from being borderline useless to something that could make sense for a narrow group of shoppers. The cards still have glaring weaknesses, but the new reward structure — including category boosts for Walmart-brand products, gas and transit — is a meaningful improvement.

What was wrong with the old Walmart cards

The original Walmart cards were underwhelming for three main reasons:

• Weak rewards: 1.25 percent back at physical Walmart locations and 1 percent back on everything else. That 1.25 percent is calculated pre-tax, so after an average sales tax it’s closer to ~1.12 percent effective cashback.
• Underqualified perks: The higher-earning Walmart World Mastercard offered 3 percent back at walmart.ca but required a very high household income to qualify (around $100,000).
• Almost no insurance: No complimentary purchase protection or extended warranty. A paid extended warranty plan is available, but it is not included for free.

To make matters worse, other mainstream cards already beat those rates at Walmart. For example, some Mastercard products treat Walmart Supercentres as grocery purchases. That can result in 2–3 percent back or better, depending on the card.

What changed — the new reward structure

The refreshed Walmart cards bring three headline changes:

• 5 percent back on Walmart-branded items (George clothing and other Walmart own-brand SKUs).
• 2 percent back on gas and public transit (new category bonus for everyday travel spending).
• Higher online potential for the World Mastercard at walmart.ca remains (3 percent), but the high household income requirement still applies.

How the 5 percent works

The 5 percent reward applies only to Walmart-branded items, not to an entire shopping bill. That is a double-edged sword: it is an attractive boost if a shopper intentionally buys a lot of Walmart brand goods, but most carts contain a mix of national brands and private-label items. Expect the blended cashback on a typical Walmart shopping trip to be well below 5 percent.

Watch the pre-tax detail

The older cards explicitly applied rewards pre-tax. The updated material does not clearly state whether the 5 percent or 2 percent are calculated before or after sales tax. Where it is unclear, it is safest to assume pre-tax calculation; that reduces the effective rate depending on local sales tax. For example, a posted 3 percent reward becomes roughly 2.65 percent with a 12 percent sales tax.

Insurance and perks: still weak

Insurance remains almost non-existent:

• No complimentary purchase protection.
• No complimentary extended warranty.
• An extended warranty plan can be bought for a fee, but it is not included.

The only notable perk is a “buy now, pay later” style installment option where purchases can be paid back over several installments. That is generally not a reason to use the card and is discouraged for non-essential spending.

Scorecard — how these cards stack up

Breaking the cards into categories gives a clearer picture.

• Rewards: 7/10 — The new buckets (5 percent private label, 2 percent gas/transit) are novel and useful, especially for shoppers who favor Walmart brands. However, most Walmart purchases are mixed-brand, and other cards still beat the blended return.
• Insurance: 3/10 — Minimal to no complimentary protections on a no-fee card is disappointing. Many free cards offer at least basic purchase protection and warranty extension.
• Perks: 5/10 — The installment option exists, but it is of limited real-world value and can encourage poor financial habits.

That produces an overall score of roughly 5/10 — a D-tier recommendation. The cards are improved but still not category-leading.

Pros and cons

• Pros
  • 5 percent back on Walmart-brand items is a meaningful, merchant-specific boost.
  • 2 percent back on gas and public transit is a solid category bonus for a no-fee card.
  • Updated structure finally feels like a card oriented toward Walmart shoppers.
• Cons
  • 5 percent applies only to Walmart-brand SKUs, not the full bill.
  • Unclear whether cashback is calculated pre-tax or post-tax in new materials.
  • Practically no complimentary insurance or protections.
  • Installment perk encourages carrying avoidable debt.

Better alternatives for most shoppers

For many Canadians there are stronger choices depending on income and priorities.

• BMO Cashback Mastercard — Recommended for shoppers who want simple, high cashback at Walmart Supercentres. Mastercard products often code Supercentres as grocery, allowing higher grocery multipliers to apply.
• Tangerine Money-Back Mastercard — A smart choice for those who want flexible 2 percent categories, including gas and transit if selected. Use it for filling the 2 percent travel bucket if that’s the priority.
• MBNA Rewards World Elite Mastercard — For higher earners willing to accept an annual fee, some premium cards offer 5 percent or similar at Walmart Supercentres. This is a worthwhile option if annual fee and income requirements make sense for the cardholder.
• Walmart World Mastercard — If one qualifies for the higher-tier Walmart World product and shops primarily at walmart.ca, the 3 percent online rate may be attractive. Qualification tends to require a high household income.

Final verdict

The updated Walmart Canada credit cards are a step forward from the previous versions. They stop being a joke and become a borderline useful store card for a specific shopper profile: someone who often buys Walmart-brand items and values small daily-category bonuses. That said, the cards remain far from best-in-class. The lack of complimentary insurance, unclear pre-tax cashback mechanics, and limited applicability of the 5 percent reward mean many Canadians will do better with other cash-back cards.

Conclusion: an improvement worth a second look for loyal Walmart-brand buyers, but not a universal recommendation. Consider the alternatives outlined above before applying.