Target & Target Visa
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Target dumps Visa to push its own card
Besides lowering receivables, the retailer hopes customers will be more loyal to Target.
By JACKIE CROSBY , Star Tribune
Last update]Target Corp. said Tuesday it will stop issuing Visa credit cards after April 29 and give new applicants a card that can be used only at Target.[/B]
Current Target Visa cardholders will not be affected.
The move is intended to spur sales at Target stores, though over time it also will lower the retailer's risk of bad-debt write-offs from consumers who don't make payments.
Target Visa cardholders make up about 95 percent of Target's receivables and about 70 percent of the overall accounts, spokesman Eric Hausman said.
Target, the nation's second-largest discount chain, has nearly 24 million Visa credit cards outstanding. It is the third-largest issuer of Visa cards, according to the Nilson Report.
Besides lowering receivables, the retailer hopes customers will be more loyal to Target.
By JACKIE CROSBY , Star Tribune
Last update]Target Corp. said Tuesday it will stop issuing Visa credit cards after April 29 and give new applicants a card that can be used only at Target.[/B]
Current Target Visa cardholders will not be affected.
The move is intended to spur sales at Target stores, though over time it also will lower the retailer's risk of bad-debt write-offs from consumers who don't make payments.
Target Visa cardholders make up about 95 percent of Target's receivables and about 70 percent of the overall accounts, spokesman Eric Hausman said.
Target, the nation's second-largest discount chain, has nearly 24 million Visa credit cards outstanding. It is the third-largest issuer of Visa cards, according to the Nilson Report.
