As both an avid shopper and longtime retail industry analyst, I know the importance of stretching your dollar as far as it can go. That‘s why I‘m always on the lookout for the best deals, promotions, and rewards programs out there. And when it comes to earning valuable cash back on everyday purchases, Walmart rewards are hard to beat.
Whether you‘re a devoted Walmart shopper or just occasional visitor to the retail giant, understanding how to maximize the Walmart rewards program is key to getting the most bang for your buck. In this comprehensive guide, I‘ll share my expert tips and insights for earning and redeeming Walmart rewards like a pro.
But before we dive into the nitty-gritty details, let‘s start with an overview of how the Walmart rewards program actually works.
How to Earn Walmart Rewards: Choosing the Right Credit Card
The first step to racking up Walmart rewards is to have the right credit card in your wallet. Walmart offers two co-branded credit cards through a partnership with Capital One:
- The Walmart Rewards Card – An entry-level store card that can only be used at Walmart locations and walmart.com.
- The Walmart Mastercard – An open-loop credit card that earns rewards at Walmart as well as everywhere else Mastercard is accepted.
Both cards have no annual fee and offer the same earning rates for Walmart purchases:
- 5% cash back at Walmart.com, including pickup and delivery
- 5% cash back on in-store purchases at Walmart for the first 12 months after account opening
- 2% cash back on Walmart in-store purchases after the first year
- 2% cash back on restaurant and travel purchases (Mastercard only)
- 1% cash back on all other purchases everywhere else (Mastercard only)
As you can see, these cards are especially lucrative for Walmart purchases, whether made online or at brick-and-mortar stores. The 5% earning rate beats out the industry standard of 1-2% back that most credit cards offer. And even after the first-year intro bonus ends for in-store shopping, you‘ll still get a respectable 2% back on your Walmart runs.
Of course, if Walmart isn‘t your go-to retailer, these cards may not be the best fit. But for frequent Walmart shoppers, it‘s hard to overstate just how quickly your rewards can add up by consistently using one of these cards.
To put the potential earnings in perspective, let‘s say your household spends $500 per month at Walmart. Here‘s how much cash back you‘d earn over the course of a year:
| Monthly Walmart Spend | 5% Earnings (Year 1) | 5% Online + 2% In-Store (Year 2+) |
|---|---|---|
| $250 | $150 | $60 online + $90 in-store |
| $500 | $300 | $120 online + $180 in-store |
| $1,000 | $600 | $240 online + $360 in-store |
As the chart illustrates, putting all your Walmart shopping on one of these rewards cards can net you hundreds of dollars in cash back every year. The key is to maximize that 5% earning rate as much as possible, especially in the first 12 months for new cardholders.
One important thing to note is that the rewards you earn come in the form of points rather than actual cash. But don‘t worry – Walmart keeps things simple with an easy-to-understand redemption system. Let‘s take a closer look at how it works.
Redeeming Rewards: Getting the Most Value for Your Points
Every dollar you spend on an eligible purchase with your Walmart credit card earns a certain number of points. The exact number of points varies based on the earning rate for that spending category, but each point is worth one cent regardless of how it‘s earned.
So if you spend $100 at Walmart.com, you‘ll earn 500 points, good for $5 in rewards. If you spend $50 at a restaurant with your Walmart Mastercard, you‘ll earn 100 points, equal to $1 in rewards. It‘s a straightforward system that makes it easy to know exactly how much your points are worth.
When it comes time to cash in your points, you‘ve got several options:
- Statement credits – Redeem points to lower your credit card balance.
- Bank deposits – Transfer your rewards balance directly to your checking or savings account.
- Physical checks – Request to have a paper check for your rewards balance mailed to you.
- Walmart.com purchases – Use your points to pay directly for purchases made on walmart.com during online checkout.
- Gift cards – Convert your rewards to Walmart gift cards in any amount for your own use or to give others.
While each of these methods ultimately puts money back in your pocket, some provide better value and convenience than others. Here‘s a closer look at each option, ranked from most to least preferable based on my experience:
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Statement credits – Redeeming rewards to cover your card purchases gives you an immediate return and ensures you‘re putting points back toward your Walmart spending. Plus, you‘ll never have to pay fees to get your money. The only downside is that you won‘t be able to use rewards for non-Walmart purchases made with your Mastercard.
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Bank deposits – Transferring rewards to your bank account gives you the flexibility to use your cash back for anything. You‘ll get the full value of your points without any fees or minimum redemption thresholds. The one drawback is that transfers aren‘t instant; expect it to take a few business days for the funds to hit your account.
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Walmart.com purchases – If you do a lot of online Walmart shopping, redeeming points directly at digital checkout can be a good option. It‘s quick and easy to apply points to your purchase, and you‘ll get the same value as you would for statement credits or bank transfers. Just keep in mind that you can only redeem points in whole dollar increments, so you may have to wait until you‘ve accrued at least 500 ($5 worth) to use them.
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Gift cards – Converting rewards to Walmart gift cards lets you either save money on your own future purchases or gift them to someone else. You‘ll get the full face value of your points, with no redemption minimum or fees. However, keep in mind that you‘re limiting the versatility of your rewards by confining them to only Walmart purchases.
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Physical checks – While checks are a redemption option, I typically don‘t recommend them. You‘ll need to have earned at least $25 worth of rewards (2,500 points) to request a check, and it‘ll take 7-10 business days to arrive in the mail. Checks can also get lost or stolen. Overall, it‘s usually easier and faster to opt for a bank transfer if you want your rewards in the form of cash.
No matter which redemption method you choose, the good news is that Walmart rewards never expire as long as your account remains open and in good standing. You‘ll only forfeit your points if you close your account or if Capital One closes it for you due to delinquency or default. That means you can save up points over time and redeem them in larger lump sums rather than small increments.
As a savvy shopper, I prefer to let my rewards pile up until I have at least $50-100 worth. Then I‘ll redeem them as statement credits or a bank deposit, depending on my Walmart spending that month. That way, I get more noticeable savings rather than just a few dollars here and there.
Stacking Rewards: Combining Credit Card Points with Other Savings Tactics
One of my favorite aspects of the Walmart rewards program is that it plays nice with other discounts and promotions. In fact, a smart shopping strategy for Walmart is to stack your credit card rewards with coupons, special offers, and other savings opportunities.
Here are a few ways to maximize your Walmart rewards with savvy stacking:
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Use the Walmart app for bonus offers – If you don‘t already have the Walmart mobile app, download it stat. You‘ll get access to exclusive offers and promotions that you can‘t find anywhere else, like bonus rewards-earning opportunities for shopping certain categories or trying new services. Sometimes the app even has special coupons for additional savings on top of your credit card rewards.
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Sign up for Walmart+ – This subscription service gives you free delivery, gas discounts, and mobile scan-and-go for in-store checkout. While the $98 annual price may seem steep at first, run the numbers to see if the perks would save you at least that much based on your Walmart shopping habits. If so, those savings combined with your credit card rewards can add up quickly.
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Opt for curbside pickup to avoid shipping fees – If you‘re not a Walmart+ member but still want to save on shipping costs, choose curbside pickup for your online Walmart orders. It‘s free at most locations, and you‘ll still earn 5% back for shopping through Walmart.com. That‘s a double-dip of savings!
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Take advantage of Walmart‘s price matching – Many shoppers don‘t realize that Walmart will match lower prices from select online retailers (including Amazon) if you find the same item sold for less. Just note that this policy doesn‘t apply to in-store purchases. But if you‘re shopping Walmart.com, don‘t forget to quickly search other sites for better deals – and then pocket the extra savings while still getting your full credit card rewards.
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Submit your receipts to cash-back apps – After you‘ve made your purchases and earned your credit card rewards, consider using receipt-scanning apps like Ibotta, Fetch, or CoinOut to squeeze a bit more money out of every Walmart trip. While earnings are usually pretty small, those extra pennies can add up over time.
The key with all of these stacking strategies is to be intentional and consistent. Making them a part of your routine ensures that you‘ll never miss an opportunity to save. And when you couple them with an optimized credit card rewards strategy, you‘ll turn every Walmart purchase into a chance to put money back in your pocket.
Putting Walmart Rewards in Context: Comparisons and Drawbacks
While I‘m clearly a big advocate for Walmart rewards, I also think it‘s important to acknowledge that this program isn‘t the best fit for everyone. Your mileage may vary depending on your individual spending habits and financial goals.
To put Walmart rewards in context, let‘s compare them to a few other retailer cards. Here‘s how Walmart stacks up against two of its biggest competitors, Target and Amazon:
| Store Card | Annual Fee | Rewards Rate |
|---|---|---|
| Walmart Rewards Card | $0 | 5% at Walmart.com and in-store for first year, then 2% in-store; 2% at restaurants and travel; 1% everywhere else |
| Target RedCard | $0 | 5% on all Target purchases, free 2-day shipping, extended returns |
| Amazon Prime Rewards | $0 with $139 Prime membership | 5% at Amazon.com and Whole Foods; 2% at gas stations, restaurants, drugstores; 1% everywhere else |
As you can see, the Walmart Mastercard‘s earning rates are competitive with those of Target and Amazon, especially when you factor in the 5% in-store bonus in year one. However, the long-term value of the Walmart card really depends on how frequently you shop there.
If Walmart is your go-to store for a large portion of your household spending, earning 5% back online and 2% in-store is likely worth it. But if you only shop at Walmart occasionally, you may get more overall value from a card that earns a higher rate across a wider range of purchases.
For example, the Target RedCard gets you a flat 5% back on all Target purchases, with no online vs. in-store difference in earning rate and no spending caps. So if you do more shopping at Target, that card would probably make more sense for your needs.
Similarly, frequent Amazon shoppers who already have a Prime membership will almost certainly get more value from the Prime Rewards Visa, since it offers the same 5% earning rate as the Walmart card but also gives you a respectable 2% back on several common everyday spending categories.
Another potential drawback of the Walmart rewards program is that there are no options for higher redemption rates on travel, gift cards, or other rewards. Cards like the Chase Freedom Flex or Discover it Cash Back, for instance, let you redeem points for travel through their portals at a higher per-point value. If you‘re not interested in straight cash back or statement credits, the Walmart cards don‘t offer much flexibility.
When evaluating whether the Walmart rewards program makes sense for you, it‘s important to think realistically about your current shopping habits as well as how likely you are to change them. Will 5% back influence you to do more of your shopping at Walmart.com? Is a first-year bonus of 5% for in-store purchases enough of an incentive for you to visit Walmart more often? Answering these questions honestly will help you determine how much you stand to gain from this program.
Final Thoughts
When used strategically, Walmart rewards can add some serious extra cushion to your budget. By understanding how the program works and using the right credit card for your shopping needs, you can enjoy substantial cash back on purchases you were already planning to make.
In my view, the Walmart cards are best for people who currently do most of their shopping at Walmart and who are motivated to shift even more of their household spending to the store to take advantage of the high first-year offer. Frequent Walmart.com customers will also benefit the most, since the 5% earning rate on online purchases never expires.
On the other hand, if you only shop at Walmart every once in a while, you‘re likely better off with a general rewards credit card that earns a high flat rate across all purchases. And if you‘re fiercely loyal to another retailer like Target or Amazon, it probably doesn‘t make sense to divide your spending just for the sake of Walmart‘s rewards.
Whichever camp you fall into, the key to maximizing rewards is to pay your balance in full every month to avoid interest and stay within your means. It‘s never a good idea to spend more than you can afford just for the sake of earning points.
At the end of the day, the Walmart rewards program is a great way to save on purchases from the world‘s largest retailer. By combining your credit card rewards with smart shopping strategies, you‘ll watch your earnings pile up in no time. Here‘s to making every Walmart trip a chance to put some cash back in your wallet!