Target 5% discount with REDcard credit & debit cards (starts 10/17)

[RBBrittain]

When I went to the new Target in Little Rock today (opened a few days early, much closer to me) and signed up for their REDcard debit card (works like Walmart's "e-check" system, but with card & PIN instead), the clerk told me that beginning October 17 it would be good for a 5% discount on nearly all purchases.

Though the REDcard site itself still refers to the current point-based, less-valuable REDcard loyalty program, when you go to print the fine print, the following appears after the current rules:

[Show spoiler]TARGET(sm) REWARDS PROGRAM RULES:
Effective 10/17/10

Every time you use your Target Credit Card®, Target® Visa® Credit Card or Target Debit Card(tm) (each a “REDcard®") you will receive 5% off your purchases at Target stores and Target.com (Target Debit Card cannot be used on Target.com). If you use a REDcard in the same purchase transaction with another form of payment, the 5% discount will apply only to the purchase amount tendered to your REDcard.

• 5% discount applies to eligible purchases minus any other discounts and the value of any promotional Target gift cards received in the transaction.
• Target reserves the right to discontinue or alter the terms of this program at any time.
• 5% discount does not apply to the following:
• (P)rescriptions, Target Clinic&g; services and Target Optical® eye exams
• Target gift cards and prepaid cards
• Previous purchases
• Target credit account payments, Target Debit Card cash back and cash advances on the Target Visa Credit Card
• Target Commercial Interiors® purchases
• Target Mobile Solutions(tm) purchases
• Gift wrap and shipping and handling charges on Target.com purchases
• Where otherwise prohibited by law

At this time, Target is only offering private-label credit cards and debit cards under the REDcard program; however, existing Target Visa cards will also get the 5% discount. The best way to apply for them is in-store; the website only has PDF applications to mail in. (Don't be surprised if you're told to wait for a decision by mail, especially with the debit card; my clerk told me all her debit-card applications came back that way.) A different REDcard reward program applies to prescriptions in most states--but apparently not here in Arkansas due to state law.

Though in most places it's not quite as good as having no sales tax (i.e., Amazon), this will be better for most people than BB's RZ program, despite its limitations (i.e., must use Target-branded cards for payment). Only RZ Gamers Club members get more than 5% back in RZ certificates (500 points or $10 certificate per $150 = 6.67% return *plus* usual RZ points), and then only on console & PC games and console accessories; all other purchases range in return from 2% (normal RZ, 1 point per dollar, 250 points per $5 certificate) to 5% (RZ MasterCard *and* Premier Silver, 2.5 points per dollar). And while you have to wait 35 days for most points (which now expire at year-end if you're not Premier Silver), PLUS wait a week more for RZ certificates to issue (which can only be used to buy more things at BB), Target's new REDcard discount goes straight to the bottom line.

[OrlandoEastwood]

I work at Target. No one is wanting them whenever I've asked. I've probably asked about 1,000 times since I've started working there. 1,000 out 1,000 said no they do not want the card despite the 5% discount. Now, being an employee, you can use your employee discount on top of that and save 15%. I'm considering getting one just so I can buy a new TV that's around $1K in price and just using it for that and only that. So, $1K (Tax not added in) - 15% = $850 (Tax not added in). For something like that, it's worth it. But everything else, it's not.

[RBBrittain]

Originally Posted by OrlandoEastwood

I work at Target. No one is wanting them whenever I've asked. I've probably asked about 1,000 times since I've started working there. 1,000 out 1,000 said no they do not want the card despite the 5% discount. Now, being an employee, you can use your employee discount on top of that and save 15%. I'm considering getting one just so I can buy a new TV that's around $1K in price and just using it for that and only that. So, $1K (Tax not added in) - 15% = $850 (Tax not added in). For something like that, it's worth it. But everything else, it's not.

Remember, the 5% discount doesn't start till the 17th; the loyalty program those 1,000 folks rejected is the old one, which only offered a one-day 10% shopping spree after every $1,000 in purchases--not very much at all. (I wouldn't want it myself for just that.)

(Edit: Note per the fine print that the current program isn't available in the Kansas City & San Antonio areas, but the new program will be; I suspect they're the test markets for the new program.)

Also, I bet they were thinking only of the credit cards; customers preferring their regular credit cards is understandable, especially since Target now offers only the private-label card. But if you're using your checking account anyway at Target (whether by check or debit card), after the 17th not getting the debit card--which works with almost every checking account, whether it has a regular debit card or not--will be like throwing free money away. (Some banks have debit-card rewards programs, but I doubt any of them offer 5% back in cash, especially at discounters like Target.)

What's more, you ever notice how many people here say they'd rather shop at BB for the RZ points--even though they only come out to 2% back for most people? After the 17th, REDcard will be better than RZ for most people--in both value (to get even 5% back in RZ points on BDs you'd need both a RZ MasterCard and Premier Silver status, which usually requires $2,500/year in BB purchases) and nature of reward (like Yogi Berra recently said in a commercial about someone else's rewards program, "it's like cash--which is just as good as money"; you can't really say that about RZ unless you're buying from BB anyway, and BB is--or was--one of my favorite stores).

Edit: Not to mention Target sells a LOT more things to get 5% back on than BB; that's why I posted this in Retail/Shopping (it's about one store and is *not* BD-specific). Expect a lot of Target fans to jump on this when it gets out to the general public; a lot of them here will once the 10/17 Target ad is posted. (If the OP of that thread doesn't mention it, I will.)

[Madman2112]

Just came across this. I have just the standard red Target card, does this card fall into this criteria?

[RBBrittain]

Originally Posted by Madman2112

Just came across this. I have just the standard red Target card, does this card fall into this criteria?

If it's a Target credit or debit card, it qualifies. (GCs don't qualify.) If it's a credit card, it doesn't matter if it's private-label or Visa; although they're only taking applications now for the private-label version (not Visa), both credit cards qualify.

[Madman2112]

Thanks for the clarification.

[RBBrittain]

I just got my check card in the mail today--good news since I was a little afraid about the credit check. (Won't go into too many details, but it's related to why I had to give up the PS3.) That means I'll be ready for the 5% off once it begins Sunday.

[RBBrittain]

Bump--5% discount is NOW LIVE.

[RBBrittain]

Bringing back this thread because it's the best place to put this, but if you're deciding between untaxed online sales (i.e., Amazon Prime) and Target with the REDcard discount, here's how to determine the net impact of taxes vs. REDcard:

1. Compute 95% of your local tax rate. (That's 100% less your REDcard discount; this accounts for the fact that tax is applied AFTER discount.)
2. Subtract the REDcard discount (5%) from that result. (The net will usually be positive, especially for BDs, but sometimes may be negative; it *IS* negative for groceries where I live.)
3. Apply this percentage to the price AFTER coupons & other forms of tender, since ONLY that amount gets the REDcard discount. (Carry the sign over from the percentage.)
4. Apply the FULL local tax rate to all taxable non-REDcard tenders (i.e., coupons in most states) and add that to #3. (If #3 is negative, subtract #3 from that amount.)

If the final result is positive, your tax will exceed your discount by that amount; if Amazon is the same price, Amazon Prime (or Super Saver) is cheaper. (However, it may be small enough that Target is still the better choice for you, especially if like me it's just down the street, their deal is better, and/or there's a manufacturer's coupon; it was only 74c for BoB when it was on sale, and will be around 43c for TSoM in release week.) If it's negative, the REDcard discount exceeds tax by that amount; Target will be better.

[malja316]

I am resurrecting this thread...I have an interest in obtaining a Target red card for the first time. I would like to know for the debit card users...how long does it take for Target and your bank to deduct the funds from your checking account once the debit card is used in the store? Also, I would like to know if your bank charges you any fees if you buy something in Target using the debit card and you have the money in your checking account? (meaning you are not in danger of an overdraft)

I am kinda torn about whether I want to apply for the debit card or the credit card...If I apply for the credit card, its another bill I have to pay...if I apply for the debit card, I am worried about hidden fees from my bank and from Target...and I am allowing Target direct access to my bank account (whereas a credit card, I am getting the impression they will not have as much access as they would with their own debit card...?...)

If you had to do it all over again, knowing what you know right now, would you apply for either a Target credit card or a debit card thru them?

Thanks in advance if you reply to my post...I am not in any rush to apply to Target, just giving it some serious thought for down the road...

[fatediesel]

Originally Posted by malja316

I am resurrecting this thread...I have an interest in obtaining a Target red card for the first time. I would like to know for the debit card users...how long does it take for Target and your bank to deduct the funds from your checking account once the debit card is used in the store? Also, I would like to know if your bank charges you any fees if you buy something in Target using the debit card and you have the money in your checking account? (meaning you are not in danger of an overdraft)

For me it usually takes a couple business days for a purchase on my Target debit card to show up in my bank account, so a weekend purchase usually won't show up until Tuesday and a Thursday or Friday purchase might not show up until the following Monday. I've had my Red Card for over 3 years and during that time I've never been charged a fee of any kind by my bank or Target related to the Red Card. No regrets whatsoever related to getting a Red Card, although the data breach scares me a little.

[malja316]

Originally Posted by fatediesel

For me it usually takes a couple business days for a purchase on my Target debit card to show up in my bank account, so a weekend purchase usually won't show up until Tuesday and a Thursday or Friday purchase might not show up until the following Monday. I've had my Red Card for over 3 years and during that time I've never been charged a fee of any kind by my bank or Target related to the Red Card. No regrets whatsoever related to getting a Red Card, although the data breach scares me a little.

Thank you for the reply! So 2-3 business days for the transaction to hit your bank account and no hidden fees...alright, that's fair I suppose...I agree that the data breach incident does stink, I am hoping stronger measures are in place now that this happened...and one positive is I will be applying for this after the data breach incident...will continue to think about this...Thanks again!

[mrcory]

Originally Posted by malja316

Thank you for the reply! So 2-3 business days for the transaction to hit your bank account and no hidden fees...alright, that's fair I suppose...I agree that the data breach incident does stink, I am hoping stronger measures are in place now that this happened...and one positive is I will be applying for this after the data breach incident...will continue to think about this...Thanks again!

I have had my Target RED Debit for about 5 years. It's no different than writing a check. It's easy and you use a pin and have the option for cash back plus the 5% off.

Not a single problem or fee from either Target or my bank

[deltasun]

Originally Posted by malja316

Thank you for the reply! So 2-3 business days for the transaction to hit your bank account and no hidden fees...alright, that's fair I suppose...I agree that the data breach incident does stink, I am hoping stronger measures are in place now that this happened...and one positive is I will be applying for this after the data breach incident...will continue to think about this...Thanks again!

The debit version of the Red Card actually did not get breached, from what I was told. Of course, it was a Target employee who told me. Still, this is one of best things to have. The 5% really adds up quick!

Also, as stated above, it takes exactly 2 days for the charges to hit your bank so it's another layer of time, if you're not sure your checking has enough in it. I'm the kind of guy who only moves money to my checking account when I use it. Otherwise, I want interest on all my money.

[obssessive]

Maybe I should give in. Been shopping there lately for a lot of groceries, and the measly 5% can add up.

[nich0103]

Yeah, this is great. If you also use the Cartwheel App Target has, savings can add up.

[deltasun]

Originally Posted by obssessive

Maybe I should give in. Been shopping there lately for a lot of groceries, and the measly 5% can add up.

No question! The debit card doesn't cost you anything at all. I wouldn't do the credit card because I'll probably leave a balance, but love the debit card.

[mike568]

My problem with signing up for a Red Card Debit Card is the fact the want a physical paper check. I don't have checks for my accounts since they cost money and I pay my rent online for free. Why can't Target be like PayPal, American Express Serve, Amazon Payments, ect and do 2 deposit totaling less than a dollar then once you verify the order of the deposits and amounts they withdrawal the money back.

Before all of the places started getting a hacked and before I had a credit card I setup 2 checking accounts. One for my direct deposit from my employer and the other for when I used my debit card online and in store. I only used my direct deposit debit card at my banks ATM's. I have a smart phone and now some banks allow texts to transfer money from one account to another account within the same bank.