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.