Both offer 5% back at their stores. Both have no annual fee. But they work completely differently — and for most shoppers, only one makes sense as a card to carry.
If you shop regularly at Walmart or Target — and most American households shop at one or both — the co-branded store card is an easy way to save 5% on purchases you're already making. Both the Walmart OnePay CashRewards Card and the Target Circle Card cost nothing to hold, offer 5% back at their respective stores, and require no annual fee. But they're structured very differently, and the right choice depends on where you shop more, how you prefer rewards, and whether you want a card that works beyond the store.
| Feature | Walmart OnePay CashRewards | Target Circle™ Card |
|---|---|---|
| Annual Fee | $0 | $0 |
| Store Rewards Rate | 5% (Walmart+ members) · 3% (non-members) | 5% instant discount — every purchase ✓ |
| How Rewards Work | Cash back earned as points, redeemed as statement credit | Applied automatically at checkout — no points, no redemption ✓ |
| Outside Store Rate | 1.5% on all other purchases ✓ | None (store-only card) |
| Usability | World Mastercard — accepted everywhere ✓ | Target stores and Target.com only |
| Welcome Bonus | $35 cash back after $75 spend in 30 days | $50 Target Circle Rewards after $50 spend ✓ |
| Free Shipping | Free on Walmart.com orders over $35 | Free on ALL Target.com orders (no minimum) ✓ |
| Return Policy | Standard Walmart policy | 30 extra days beyond standard 90-day policy ✓ |
| Anniversary Perk | None | 10% off one purchase per anniversary year ✓ |
| Walmart+ Dependency | Need Walmart+ ($98/yr) for 5% rate | None required — 5% is automatic |
| Foreign Transaction Fee | None (World Mastercard) ✓ | N/A — store-only use |
| Credit Required | Good (670+) | Fair–Good (640+) |
| APR | Variable (varies by approval tier) | 28.45% variable |
| Issued by | Synchrony Bank | TD Bank |
5% back at Walmart is only available to Walmart+ members, who pay $12.95/month or $98/year. Non-members earn 3%. If you don't already have Walmart+, you need to factor in the membership cost. For $100/month in Walmart spending: 5% = $5 back, but $8.17/month in Walmart+ fees wipes out the savings. The card only makes financial sense for shoppers already committed to Walmart+.
5% automatic discount is applied at checkout on every eligible purchase — no membership required, no points to track, no minimum, no cap. Every time you pay with the card, 5% comes off the total instantly. This is one of the simplest and most reliable store card benefits available. No annual fee, no membership, just a guaranteed 5% off at a store 100 million+ Americans visit regularly.
World Mastercard — accepted at 210+ countries and millions of merchants worldwide. Earns 1.5% back on all non-Walmart purchases. Charges no foreign transaction fee. This makes it a legitimate everyday card, not just a store card. Use it for dining, gas, utilities, and online shopping when you're not at Walmart and still earn something.
Store-only use. It cannot be used outside Target properties. This is the card's most significant limitation — a dead card in your wallet any time you're not at Target. If you want to simplify your wallet, the Target Circle Card forces you to carry at least one other card for everything else.
Free shipping on Walmart.com orders over $35 (same as the free tier for all Walmart+ members, so this isn't an exclusive card perk). Modest $35 welcome bonus. No anniversary perk. The OnePay card's value is almost entirely in the cash back rate — it doesn't layer in meaningful extras.
Free shipping on all Target.com orders — no $35 minimum, which is a genuine everyday benefit for online Target shoppers. 30 extra days to return items beyond the standard 90-day policy — extends to 120 days total. 10% off one purchase per anniversary year (useful for a large back-to-school or holiday haul). The Target Circle Card layers in meaningful extras that go beyond just a discount rate.
$35 bonus after spending $75 in 30 days. That's a 47% return on the minimum spend — generous percentage-wise, but a small absolute dollar amount. The low spend threshold ($75) is very accessible.
$50 Target Circle Rewards after spending $50 in qualifying purchases. That's a 100% return on the minimum — spend $50, get $50 back. Effectively free money for any Target shopper, and easier to hit than most card welcome offers.
Both cards carry high APRs — Target Circle Card at 28.45% variable, Walmart OnePay at variable rates in a similar range. At these interest rates, carrying even a small balance erases months of 5% cash back in interest charges. Use these cards only if you pay your balance in full every month. They're savings tools, not financing tools.
To get 5% back with the Walmart OnePay card, you need Walmart+ at $98/year. If you spend $150/month at Walmart (a modest household grocery run), 5% back earns $90/year. The Walmart+ membership costs $98. Net result: you're -$8/year before earning a dollar on the card. The math only works at higher Walmart spend levels (~$165+/month) where the 5% cash back exceeds the $98 Walmart+ fee. If you already have Walmart+ for the streaming and delivery perks, the card is an easy add. If not, be careful with the math.
For most households that shop at both stores, the Target Circle Card is slightly easier to justify: 5% off automatically with no membership math, free shipping on everything, and genuine extra perks. The Walmart OnePay card is the better choice for Walmart loyalists who already pay for Walmart+ and want a card that works everywhere at 1.5% on all other spending. Both are worth getting if you're a regular shopper at either store — the annual fee is $0, and the downside is minimal.
For the sharpest shoppers, either store card can be paired with a general cash back card for everything else. The Citi Double Cash (2% on everything) or Chase Freedom Unlimited (1.5%+ with dining bonuses) fill in the non-store spending gap the Target Circle Card leaves entirely. This pairing means you're earning 5% at your preferred store and 1.5–2% on all other spending with no annual fees on either card.
Yes — the 5% discount applies to most Target purchases including Target Pharmacy (excluding prescriptions covered by insurance), Target Optical, Target Café, and Target.com purchases including grocery delivery.
Yes — non-Walmart+ members earn 3% back at Walmart with the OnePay card, not 5%. The 3% rate is still competitive for a no-fee store card, but the gap between 3% and 5% is meaningful for high-volume Walmart shoppers.
Yes — Target rebranded the RedCard as the Target Circle Card in 2023. The core benefit (5% off at checkout) and structure remain the same. The credit card version is issued by TD Bank and is distinct from the Target Circle debit card, which draws directly from your checking account.
The Walmart OnePay card, by a wide margin — it's a World Mastercard accepted anywhere Mastercard is accepted globally. The Target Circle Card is store-only and cannot be used outside Target properties.