Archived The truth about the Target Debit Card

[Bullseyerc]

My theory:

Target purposely makes it difficult for most guests to sign up for one (having to have a blank check) so they can increase their chances of guest signing up for the credit one.. (Hence the high interest and APR = more profit)

Target has it so funds are taken out of the account slowly so guest will overdraft thus increasing profits.

Guest may eventually hate this and thus apply for the CREDIT one as they want to keep benefits and not have to wait days for payments to process as the credit one is instant.

 

[Havok]

Yeah, the red card is just evil in general. We can't even use our team member discount without one if you're like me and do not carry more than $20 of cash, lol.

I won't let Target win though! I have a pretty good memory of how much I spend when I use that red card. I usually wait it out until it shows in my bank account before using it again as well.

 

[Signkitty]

You can keep track of the balance of your account attached to debit cards like you would an account with checks. Keep your bank account balanced and your good.

 

[Hardlinesmaster]

FYI, spot does not own the red card portfolio. It goes through a bank. You have more rights with a credi card, than a debit card.

 

[BoxCutter]

FYI, spot does not own the red card portfolio. It goes through a bank. You have more rights with a credi card, than a debit card.

Target sold the credit card business to TD Bank a few years ago, so Target isn't making a thing on the interest charged. It is my belief though, that the bank requires Target to open x amount of cards a year. or be fined. I also would not be surprised if they went over that goal by a certain percentage, they get some money in return. Again, this is just my uninformed opinion.

 

[tgtguy]

My only minor issue with the Target Debit is that its slow to withdraw the money. I have heard guests complain about it as well. However, its not that big of a deal to me. I always check my bank account at least every other day...so I know what I have and or don't have. I also either write down a Target debit or make a mental note of it . I am forgetful of a lot of things...but when it comes to my money I can remember pretty much anything .

 

[NPC]

Or, they don't want to pay a programer to upgrade our systems to not require a check. I'd hardly call the Debit Card process "difficult." I would call it antiquated though. I also don't think they're being insidious in their intentions. I do think they're being stupid for thinking 5% is worth anything.

 

[Infinim]

Pretty sure in some states some type of proof of ownership of the checking account is required. Hence the check and ID to open one.

 

[Megaparsec]

My theory:

Target purposely makes it difficult for most guests to sign up for one (having to have a blank check) so they can increase their chances of guest signing up for the credit one.. (Hence the high interest and APR = more profit)

Target has it so funds are taken out of the account slowly so guest will overdraft thus increasing profits.

Guest may eventually hate this and thus apply for the CREDIT one as they want to keep benefits and not have to wait days for payments to process as the credit one is instant.

So, you're saying "This company has screwed me with their BS fees... so I'm going to SHOW THEM by signing up for a different card with different fees!

...

It seems like pissing people off isn't the best way to motivate people. I mean, it's not like Target is some sort of cable or wireless company...

 

[Retail Girl]

It's not a debit card. It's a check card. It doesn't have direct access to the person's account like their debit card does...that's why it takes a couple of days to clear. It isn't Target's fault people can't figure out how to balance a checking/debit account.

 

[unknown]

I can't imagine having a debit card on my bank account other than the official one from my bank. I have the Target cc and pay it off every month. So Target really isn't making money off me.

 

[redeye58]

Ditto.
I go on-line to check balances when need be, I get an email when my payment is due & how much so I go to the service desk & pay it off in full.

 

[signingminion]

Or, they don't want to pay a programer to upgrade our systems to not require a check. I'd hardly call the Debit Card process "difficult." I would call it antiquated though. I also don't think they're being insidious in their intentions. I do think they're being stupid for thinking 5% is worth anything.

They played around with not needing a check back before the data breach...or right near it...never got anywhere though.

 

[SFSFun]

My theory:

Target purposely makes it difficult for most guests to sign up for one (having to have a blank check) so they can increase their chances of guest signing up for the credit one.. (Hence the high interest and APR = more profit)

Target has it so funds are taken out of the account slowly so guest will overdraft thus increasing profits.

Guest may eventually hate this and thus apply for the CREDIT one as they want to keep benefits and not have to wait days for payments to process as the credit one is instant.

Um what?

Having a blank check is to help reduce fraud, so you can't just go type in a random account number. And it's not difficult at all to sign up for one if you indend to do so. Most people have at least a few blank checks that they got with their checking account.

The processing time is a couple of days, like most other ACH bank transfers. Target or the bank that actually runs this doesn't do anything to slow down processing.

 

[NPC]

Um what?

Having a blank check is to help reduce fraud, so you can't just go type in a random account number. And it's not difficult at all to sign up for one if you indend to do so. Most people have at least a few blank checks that they got with their checking account.

The processing time is a couple of days, like most other ACH bank transfers. Target or the bank that actually runs this doesn't do anything to slow down processing.

If I had someone's account number, and I was into doing some of the things some of our more shady guests do....applying for a RedCard is the last thing I'd do. Nor would the system accept a random account number. Especially if it didn't belong to your other information, for example, your SSN. I don't see it as a measure of security, rather just an old way to process the application.

Having said that, I otherwise agree with you on Target not intentionally slowing down processing time. I also don't like treating it as if it's some evil business tactic. It's nothing more than an incentive. Simply being mindful of your money is the easiest way to avoid over drafting. I admit I had that problem before I realized it took a few days to withdraw, but it's no longer an issue. With mobile banking, and the simple ability to do math, there's no excuse for over drafting because of a Target Card.

Personally, I'm much more of a supporter for the Check card than I am the Credit one. Just a matter of preference. I think the interest is far too high on the Credit card. I know that can be avoided by paying it off, but, considering my bank credit card has far better perks, and a very low interest rate, the Target one pales in comparison. 5% is nothing.

 

[unknown]

Um what?

Having a blank check is to help reduce fraud, so you can't just go type in a random account number. And it's not difficult at all to sign up for one if you indend to do so. Most people have at least a few blank checks that they got with their checking account.

The processing time is a couple of days, like most other ACH bank transfers. Target or the bank that actually runs this doesn't do anything to slow down processing.

I'm not saying they do .... But how do you KNOW they don't do something to slow down the processing? Proof. Evidence. It's not enough to say ....They don't. Or I don't think they do.

It seems to be a problem, I've read it a couple times on here including in this thread.

 

[Jack of all Workcenters]

They played around with not needing a check back before the data breach...or right near it...never got anywhere though.

We were a test store for it, you just brought in the debit card you wanted to use and it would sign you up off of that. Kept having issues though. Of course I believe that was on the old pos.

 

[Jack of all Workcenters]

I'm not saying they do .... But how do you KNOW they don't do something to slow down the processing? Proof. Evidence. It's not enough to say ....They don't. Or I don't think they do.

It seems to be a problem, I've read it a couple times on here including in this thread.

Check card takes three business days to process. People have learned to take advantage of that.

 

[SFSFun]

I'm not saying they do .... But how do you KNOW they don't do something to slow down the processing? Proof. Evidence. It's not enough to say ....They don't. Or I don't think they do.

It seems to be a problem, I've read it a couple times on here including in this thread.

What would be the incentive for Target and TD bank to intentionally slow the process of getting their money for goods that have already left the store? And how is it being slowed down at all? I pay several bills with an ACH bank transfer, the same process Target debit cards use, and they also take a few days to process.

 

[Xanatos]

I'm not saying they do .... But how do you KNOW they don't do something to slow down the processing? Proof. Evidence. It's not enough to say ....They don't. Or I don't think they do.

Same goes for these conspiracy theories. Proof. Evidence. It's not enough to just say that they do it.

 

[BullseyeBabe]

What does ACH stand for?

 

[glo]

Y'all got some crazy conspiracies...

Red cards save Target money on merchant fees from card issuers. Simple as that.

 

[aspiringETL]

I had my first online debit application denied because they couldn't verify my identity. I did it again with the exact same info and they accepted me. Hmmmm..... the great Target conspiracy.

 

[BeelzeBecky]

What does ACH stand for?

Automated Clearing House

It's a network in the US that processes electronic payments (checks get cleared through the Federal Reserve for example)
This is why it can take more than a few hours for electronic check or debit card payments to show up on a statement - Target closes it's batches at the end of business, then that info goes different institutions to be cleared, and then to the Fed or to another payment network and those have to be balanced and updated.

The red card debit card is nothing nefarious. It's just another payment method. No big deal IMO

 

[HardlinesFour]

Target has it so funds are taken out of the account slowly so guest will overdraft thus increasing profits.

Unless Target has recently acquired JP Morgan Chase, Citibank, Bank of America, US Bank, and Wells Fargo... I highly doubt they are profiting off overdraft fees that are accessed by Banks to the account holders.

Banks supposedly charge this as a convenience fee for providing instant credit to cover the shortfall. But it's not accessed by whoever caused the overdraft, it's the Financial Institution who issued the Checking/Savings Account.

What does ACH stand for?

ACH is just some sort of electronic check processing system. It takes the routing & account numbers on the bottom of checks, and converts them digitally so they can be processed faster. The system begin in mid-2004 I think... Their was a ton of notices about a new electronic check law.