Target Corporation’s RedCard program is a leading loyalty program among retailers in the United States. The program is accessible to everyone and is integrated seamlessly into customers' payment methods. With lower barriers to entry than other loyalty programs, Target tries to builds a relationship with its customers and can personalize the promotions and advertising offered to the consumer with this card.

Target’s RedCard comes in three forms: a Mastercard (open loop card), an in-store-only credit card, or a debit card. The debit card is linked to customers' existing checking accounts, and for the credit card, users can charge in-store purchases or buy online with the credit card at Target.com. The Target branded Mastercard can be used anywhere that accepts Mastercard. In this article, we are primarily discussing the Target RedCard debit and credit card, not the Mastercard.

Key Takeaways

  • All Target cards can be used at Target stores (brick-and-mortar and online).
  • The Target RedCard comes with 5% off purchases and free two-day shipping.
  • The Target debit card is linked to your checking account.
  • The Target RedCard has a high APR of nearly 23%.
  • If you regularly shop at Target, the perks of a RedCard may be worth the high APR.

Features of the Target RedCard

All Target cards offer 5% off purchases every day at in-store and online locations and free two-day shipping on most items. Users also have an extended return facility giving them 30 extra days to return products to Target or Target.com. However, this does not apply to Target mobile purchases, fixed return dates, and non-returnable items.

The Target RedCard has a high APR at 22.90%, which varies with the market based on the prime rate. According to Experian, the average variable credit card APR is around 17% as of April 5, 2018. There is also a late payment fee of up to $40 and a return payment fee of $29. Customers looking to combine the benefits of the RedCard with a more traditional credit card can sign up for a Mastercard Incorporated RedCard through TD Bank, USA.

The cards have PIN technology, a more secure form of payment that requires customers to insert their cards and enter a PIN rather than swiping and signing. PIN cards are used worldwide and have significantly cut down on fraudulent charges.

What's in It for Target?

Most companies use loyalty programs to collect customer data in addition to building loyalty among patrons. Target’s data collection system is thorough. Every purchase, email, or phone call is tracked, and data is applied to algorithms for marketing and planning purposes. By collecting data, the company can personalize deals and discounts for its shoppers.

In 2013, Target suffered a massive data breach of its RedCard program, and the subsequent settlements cost Target $39.4 million.

How Can I Get a Target RedCard?

You can get a Target RedCard by applying online for one. The RedCard credit application is on the Target.com website. You must verify your employment and income, review terms, and create a pin. You may be approved to shop online instantly, or you may have to wait for seven to ten days to get your card, depending on if Target approves you automatically.

The website isn't 100% clear on how long it may take to be approved for either RedCard if you are not automatically approved. If you are not approved it may be due to red flags on your credit report or a low credit score. Like any credit card, you have to meet certain requirements in order to be approved for a new credit card. If you apply and are not instantly approved, you may get a notice that your file is "in review."

The Bottom Line

Target's RedCard can be used for both in-store and online ordering for user convenience. Once a customer is signed up, Target begins to collect data from that individual's profile. The program is appealing to shoppers because it provides generous discounts and community donations. However, users should be aware of the high interest rate and the late payment fees, which could cause debt to mount if the balance is not paid off each month.

Is the Target RedCard a Credit Card?

Yes. Target offers a RedCard credit card issued by TD Bank USA.

Can You Be Denied for a Target Debit Card?

Yes. Just like any retail card, if you don't meet specific criteria, you may be denied.

Where Can I Use My Target RedCard?

You can use a Target RedCard Mastercard credit card anywhere that takes Mastercard, and you can use your Target RedCard charge card or Target debit card at Target stores or on Target.com.

How Do I Pay My Target RedCard?

You can pay your Target RedCard charge card online. In the case of the Target RedCard debit card, the money comes immediately out of your checking account when you use it.

How Long Does It Take for the Target RedCard to Post to My Account?

Your Target RedCard may be added immediately to your account at Target, if you are automatically approved.

How Do I Close My Target RedCard?

You can call Target's toll-free number or close it via mail.