This month, Walmart is launching a new co-branded credit card program with two cards that offer five percent back on Walmart purchases.

The program consists of a Mastercard-branded Walmart Rewards credit card that can be used at any merchant that accepts Mastercard, and a Walmart Rewards store card that customers can only use at Walmart stores. Both cards come from Walmart's new banking partner Capital One, which replaces Synchrony Bank as the issuer of Walmart's credit cards.

Walmart's old Mastercard credit card had a tiered rewards plan that topped out at three percent for purchases made online at Walmart.com. If consumers shopped in store, they got a mere one percent back on your purchases, which is also what they got for using the card anywhere.

Now Walmart is increasing the rewards for shopping at Walmart.com and in the Walmart app to five percent. This includes Grocery Pickup and Delivery purchases. If you shop in a Walmart store, you'll get two percent back. If you pay for those purchases with Walmart Pay, that will be five percent back through October 14, 2020.

Purchases at Walmart and Murphy USA Fuel Stations also get two percent back. The Mastercard card also gives two percent back on restaurants and travel spending, and one percent back on all other purchases.

Cardholders will be able to redeem their rewards at the checkout section of Walmart.com purchases, redeem them for purchases, get an account credit or cash them in for gift cards. Mastercard holders can redeem rewards for flights, hotels and car rentals.

"Walmart’s mission has always been to help customers save money so that they can live better, and our new credit card program—which both helps customers earn more when paying for things in and outside of Walmart, and offers many other incredible benefits—is squarely aligned with that mission," said Daniel Eckert, senior vice president, Walmart services and digital acceleration, in a statement. "As our company has evolved to serve customers shopping in stores, online, and on the Walmart apps, we also recognized the need to fully digitally enable the cardholder experience; that’s why we’ve worked with Capital One to make it possible for cardholders to manage essentially every interaction with the program right from the palm of their hands."

The Walmart Mastercard has no annual fee and no foreign transaction fees. It also doesn't have a fee for balance transfers – unless the balance is transferred under a promotional APR. Then it's three percent of the transferred balance. The APR ranges from a variable 17.99 percent to 26.99 percent based on creditworthiness. The cash advance APR is 26.99 percent, and the cash advance fee is either $10 or three percent of the advance amount, whichever is greater. Late payments cost up to $39.

This same late payment fee is in effect for the new Walmart Rewards store card. Because this card is only for use at Walmart stores, it doesn't have any balance transfer or cash advance options. Its APR is a variable 26.99 percent.

Additional perks of the card include real-time purchase notifications, security alerts and zero percent fraud liability for lost or stolen cards. Cardholders can also lock and unlock their card through the Capital One app.

"We are using our technology expertise to transform the customer experience through a digital-first approach," said Daniel Mouadeb, senior vice president, head of Walmart partnership at Capital One, in a statement.

Consumers who already have a Walmart credit card will be converted to the new card on October 11. Those who want to apply for a card can do so online at Walmart or Capital One's websites, or the Walmart app.