April 19, 2010
-
News: Target Ends Relationship With Visa
A major U.S. retailer has the banking industry and the retail industry buzzing over its recent decision regarding its brand name credit cards. Target Corporation announced that it will be severing its ties with Visa and issuing all new card applicants who qualify with the Target Credit Card. The card will be valid at all Target stores and online shopping at target.com. Previously, Target has partnered with Visa to offer the co-branded Target Visa Credit Card. Target will begin issuing the new card on April 29, 2010. Customers who currently carry the Target Visa card will not be affected and their cards will continue to be accepted through the cancellation date and can be renewed with Visa at that time.
A recent test of the new card conducted by Target's Financial Services division found that customers tend to spend more during each shopping trip when they have been issued a Target credit card rather than the Target Visa card. The company feels that by offering its own financed credit, they will increase customer satisfaction and retail sales. A multimillion dollar credit card business has been one of Target's most valuable assets since the retailer began offering its co-branded Visa card in 2001.
Target Corporation is based out of Minneapolis, Minnesota and operates over 1,700 Target stores across 49 states with Vermont being the exception. As the second largest discount retailer in the U.S. behind Wal-Mart, the company operates stores under the names of Target, SuperTarget, and Target Greatland. Retail items sold at Target stores include general merchandise as well as a booming food division. Online customers can purchase nearly every category of goods which is serviced through Amazon.com and has nearly 300 million visitors a year. Target Credit Card will be serviced through its own Target National Bank. The company is traded on the New York Stock Exchange (NYSE) under the symbol TGT.