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Moderator Emeritus
cheddar
Posts: 6,794
Registered: ‎09-29-2007
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Re: Target Debit Card

[ Edited ]


Lady_Scarlet wrote:
Major retailers converted to Check 21 - everything is electronic now (no paper returned to your bank at all - only digital images.
 
Safest way to purchase anything is with a CC that has 0% fraud liability.


Oh, I am aware of Check 21.  I wrote the check scanning and payment processing software for my company to implement the change back in 2005.
 
But despite the presence of Check 21, it is still more costly to process a paper check than an electronic transaction.  The main difference is that the paper check has handling and storage and/or disposal costs that an electronic transaction doesn't have.  Even if you send the check through the ACH system for electronic processing, you still have to do something with the paper check in your hands.
 
And that something costs money.
 


Message Edited by cheddar on 02-01-2008 11:17 AM
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krystofur
Posts: 387
Registered: ‎08-10-2007
0

Re: Target Debit Card

If you've read some of my post, you'll know that one of the things that got me so interested in my credit report is monitoring for ID theft.  I dropped my debit card a few months back to avoid any chance of a problem related to the loss or theft of our debit cards.  If I hadn't made the switch before I sure would now.  Without checking on Target's website, it sounds like all someone would need is a SS and a checking account routing number and account number and they could tap into your account.  Someone mentioned needing a voided check, but that wouldn't be too had to fabricate if you had the information to go along with it.  Why are people/corporations making it so easy for the thieves?
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CLCarozza
Posts: 1
Registered: ‎07-09-2011
0

Re: Target Debit Card

As a Target employee, and yes I am one of 'those' whom bombard you at the checkout, I would love to give you the lowdown.

 

 

Here is what will effect you:

 

1.You basically get back 5% on every purchase (you just never spend it) the moment you pay with the card. Not only is it giving you 5%instead of 1 or 2% cash back that many credit card companies offer, you also get the money immediately verses whenever your credit card company pays (after you incur between 8 and 22APR's if not payed off in whole)

2.We also donate 5% of your spending back into the community.

3. There are not any annual or usage fees tied to the Debit or Credit Card.

4. This can go threw even if there is not enough money in your account to cover your purchase.I believe, but am not positive on this,you incur a fee from both us and your bank, but I don't believe that it can be legally more than $35 if it does. I will come back to edit this part of the post once I know for sure, as to not mislead you.

5. It doesn't run your credit.

6. Make sure you have a blank check to Void, we scan both your check and drivers license (or state ID) to verify the accounts. Then the check will then be returned to you and the whole process takes about 2 minutes.

 

What we get out of it:

 

 Yes, it makes us money, but for once not at the consumer's expense. It is a legal maneuver to hit back at the credit card companies by cutting them out of the picture entirely.

 

     There are many benefits to the company for the RedCard Debit accounts. All business' pay a processing fee to card companies for the privilege of allowing the customer the convince of using their cards. Think about how much credit card companies hit up their consumers with annual fees and APR's. They hit us up too.

      First and foremost, the Debit cards are not issued by mastercard or visa, circumventing the processing fees, around 1.3% (Just an average since I am not privy to target financials) per transaction. Take a look around next time your in the store, most of the people you see are paying with a card. This is why many smaller business' have minimum transaction amounts for credit cards such as; small restaurants, bars, and service stations.

 

The second sales driver is brand loyalty, and Cards of all sorts build loyalty. Building brand loyalty is a fundamental business tactic. It is a well known fact in commerce that it is significantly more cost effective to keep a customer than it is to recruit new customers, or guest as Target refers to you. The theory is, instead of you buying the same Item at the same price at say Wal-Mart, having the card influences your purchasing the item with us instead. It brings more money in in the long run over having more purchases for less revenue.

 

I hope that this has answered some of your questions regarding the RedCards. If anyone has any questions regarding these just post a reply and I would gladly answer any remaining questions. I am sure that I may have left something's out but this is a good general gist. I will come back after I double check a anything noted and edit my post.

 

 

Senior Contributor
O6
Posts: 3,626
Registered: ‎10-13-2009
0

Re: Target Debit Card


CLCarozza wrote:

As a Target employee, and yes I am one of 'those' whom bombard you at the checkout, I would love to give you the lowdown.

 

 

Here is what will effect you:

 

1.You basically get back 5% on every purchase (you just never spend it) the moment you pay with the card. Not only is it giving you 5%instead of 1 or 2% cash back that many credit card companies offer, you also get the money immediately verses whenever your credit card company pays (after you incur between 8 and 22APR's if not payed off in whole)

2.We also donate 5% of your spending back into the community.

3. There are not any annual or usage fees tied to the Debit or Credit Card.

4. This can go threw even if there is not enough money in your account to cover your purchase.I believe, but am not positive on this,you incur a fee from both us and your bank, but I don't believe that it can be legally more than $35 if it does. I will come back to edit this part of the post once I know for sure, as to not mislead you.

5. It doesn't run your credit.

6. Make sure you have a blank check to Void, we scan both your check and drivers license (or state ID) to verify the accounts. Then the check will then be returned to you and the whole process takes about 2 minutes.

 

What we get out of it:

 

 Yes, it makes us money, but for once not at the consumer's expense. It is a legal maneuver to hit back at the credit card companies by cutting them out of the picture entirely.

 

     There are many benefits to the company for the RedCard Debit accounts. All business' pay a processing fee to card companies for the privilege of allowing the customer the convince of using their cards. Think about how much credit card companies hit up their consumers with annual fees and APR's. They hit us up too.

      First and foremost, the Debit cards are not issued by mastercard or visa, circumventing the processing fees, around 1.3% (Just an average since I am not privy to target financials) per transaction. Take a look around next time your in the store, most of the people you see are paying with a card. This is why many smaller business' have minimum transaction amounts for credit cards such as; small restaurants, bars, and service stations.

 

The second sales driver is brand loyalty, and Cards of all sorts build loyalty. Building brand loyalty is a fundamental business tactic. It is a well known fact in commerce that it is significantly more cost effective to keep a customer than it is to recruit new customers, or guest as Target refers to you. The theory is, instead of you buying the same Item at the same price at say Wal-Mart, having the card influences your purchasing the item with us instead. It brings more money in in the long run over having more purchases for less revenue.

 

I hope that this has answered some of your questions regarding the RedCards. If anyone has any questions regarding these just post a reply and I would gladly answer any remaining questions. I am sure that I may have left something's out but this is a good general gist. I will come back after I double check a anything noted and edit my post.

 

 


 

Thank you for taking the time to explain that.  It seems like a good deal for all.

 

One thing I would prefer, though, is having one multi-purpose card to do everything.  I am sick and tired of having to carry a wallet stuffed with various cards. 

IAALBNYL
New Visitor
GamerDude
Posts: 1
Registered: ‎07-10-2011
0

Re: Target Debit Card

I'm also a Target employee and I reccomend the debit card to anyone who doesn't want to apply for the credit card.

It is easy, take less then 5 minutes, and you get to enjoy 5% off which if you shop alot at Target or plan on buying big items, it certainly helps.

Valued Contributor
RockinRay
Posts: 1,947
Registered: ‎08-13-2007
0

Re: Target Debit Card

When i got my debit card from them I gave them my social when asked... I used the debit card for about 6 months paying for groceries / stuff each week.

 

Once I had the card for about 6 months, I decided to app in the store for the Target Red Card. Instant approval with a $2500 limit which I think is decent for Target National Bank.

 

So although they do not report on the debit card, I think there might be some sort of internal reporting / tracking going on so when you apply for the Red Card, they have some history. I could be wrong on that though. Not sure, just thinking here.

 

I expected to get a nice fat $200 to $300 limit on the card as I have seen many people get. I was surprised at $2500.00.

 

Ray

Ray

** Every Card has a Job, and Every Card does its Job **

New Visitor
ershell
Posts: 1
Registered: ‎08-28-2011
0

Re: Target Debit Card

I finally gave in and got a Target Debit card.  I was making a big purchase for my daughter’s first apartment off campus at U of A.  I knew I’d be making many more for her and I shop in Target at least 3 times a week anyway.  The savings of 5% sounded pretty good.  On my 4th shopping trip within the week my card was declined for a $167.00 purchase.  All the purchases previous to that had already cleared my bank.  I asked the woman at the register if she knew if there was a cap on using the card: too many transactions/over the limit or anything else.  She said she didn’t know but proceeded to shout to a “Team Leader” across two aisles, “her Target debit card was declined, do you know if there’s a limit to using it.” The response was a stern “NO”…  I would have walked out at that point without my stuff but I was getting a nightstand that my daughter really wanted.  I went to Customer Service and she told me I had to call the 800 number in the morning.  I called and they had no clue what happened and couldn’t give me an explanation for my card was declined.  I was then referred to another company who handles the card.  I called and after listening to a woman recite her script about 4 times without answering my question,  I asked her to just answer …”Why was my card declined.”  She told me that there is a limit to how many times the card can be used but that’s between their company and the merchant and that I cannot know that information.  I started to ask her something else and she interrupted me to ask if there was anything else she could do for me.  UGH! So, I called the Target 800 number again and told them that since they will not tell me what the limits are to the card, I will never be able to use it in confidence and always fear the embarrassment of being declined. I SPEND A FORTUNE IN THAT STORE AND I’M IN THERE ALL THE TIME!  If the money is in the account and it is used as a debit, the card should not be declined. Had I been cut-off because I was getting too many discounts?  That 5% really adds up...ha ha ha!    BUYER BEWARE!! 

Established Contributor
lithium78
Posts: 930
Registered: ‎07-30-2011
0

Re: Target Debit Card

I got the Target credit card (store card not Visa) in 2008 with a limit of $200.  A year later, they increased it to $1000, which is where it remains today.  It's great for getting 5% off everything.  I suppose the debit card is good for people who can't be approved for the store card, since it gives pretty much the same benefits.  Target benefits by circumventing interchange fees, so it's a win-win situation.


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trumpet-205
Posts: 2,505
Registered: ‎11-11-2010
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Re: Target Debit Card

I have a Debit REDCard and I can tell you no hard pull on my reports. There may have been a soft pull for ID verification though.

 

 

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