Target Visa No More; Retailer Opts for Its Own Card

TargetStarting April 29, Target will no longer issue its Visa Credit Card, opting for store-branded cards for all new qualified applicants.
After extensive test-marketing, Target said it has found that customers spend more with store-branded cards and expects increases in retail sales as a result.
But generally store cards carry higher interest rates than Visa or MasterCard-branded general-purpose cards.
New credit card laws that went into effect Feb. 22 do not address that gap in interest rates.
Retailers have to adhere to the same rules against retroactive rate increases, but they there are no restrictions on the rate they would offer new customers.
The retailer’s proprietary credit card can only be used at Target stores and
“Our financial products are designed to deepen relationships with our retail guests and drive profitable sales for Target,” said Terry Scully, president, Target Financial Services. “Recent product testing and guest research underscores the tremendous value enjoyed by Target Credit Card guests. Target benefits from these powerful guest relationships through increased trip frequency and retail sales.”
Target is the third-largest issuer of Visa credit cards, with 23.9 million cards outstanding, and the 15th-largest issuer overall by purchases, according to the Nilson Report, an industry newsletter.

One thought on “Target Visa No More; Retailer Opts for Its Own Card

  • April 22, 2010 at 4:35 pm

    DEAR MR. TARGET: I am very unhappy that you are taking-away my use (of the target-visa credit card). Being a disabled person, my use of this credit card is my way of connecting with the world from my home. Beverly.

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