Archived The truth about the Target Debit Card

[BeelzeBecky]

Y'all got some crazy conspiracies...

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

That too. Credit card companies charge higher fees, with AmEx being the highest.

 

[Coqui]

Target doesn't collect overdraft fees, that's your bank.

 

[Frontlanegirl]

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

I tried explaining this to a guest last week when she tried to claim that getting her red card has created problems with her iPhone.

 

[Hardlinesmaster]

What does ACH stand for?

Automated Clearing House (ACH) is an electronic network for financial transactions in the United States. ACH processes large volumes of credit and debit transactions in batches. ACH credit transfers include direct deposit, payroll and vendor payments.

 

[mrknownothing]

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.

This. Why don't people understand the importance of keeping a balanced checkbook? After all, don't you want to make sure you know how much money is actually in your account? Yes, I know, a lot of people prefer to check their online banking instead, but an immediately balanced checkbook is more accurate when there are outstanding checks or yet-to-be-cleared ACH transactions.

Most people have at least a few blank checks that they got with their checking account.

I never understood why some people never have checks. Many banks offer the first batch for free when you open the checking account. If you rarely write checks, chances are you have at least one blank check laying around somewhere.

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.

Last I knew, my bank charges a service fee for using your debit card for a debit transaction (as opposed to credit). Since the Red Card debit is processed as ACH rather than debit, it may take longer to clear the transaction, but at least you don't get that service charge. Plus, 5% and the TM discount.

I tried explaining this to a guest last week when she tried to claim that getting her red card has created problems with her iPhone.

What the actual fuck?

 

[Frontlanegirl]

What the actual fuck?[/QUOTE]

Yup, It took everything to not laugh and shake my head at her. Tried telling her having a red card is in no way connected to her iPhone problems. We she didn't have a problem with her iPhone before getting a red card. OMG.

 

[BullseyeBabe]

I hate to sound snarky l, but why would people have paper checks? Hardly anyone does anymore. I take very few checks out of registers at closing. They are a pain to use. I use auto debit or bill pay with my checking acct. I also have direct deposit. It's weird to me that people want to take a paper pay check to a bank and stand in line to deposit or cash it.

 

[mrknownothing]

I hate to sound snarky l, but why would people have paper checks? Hardly anyone does anymore. I take very few checks out of registers at closing. They are a pain to use. I use auto debit or bill pay with my checking acct. I also have direct deposit. It's weird to me that people want to take a paper pay check to a bank and stand in line to deposit or cash it.

Some people are leery of allowing automated systems to have that much control over their money. I'm not a conspiracy theorist, but too many things could go wrong and I'm the lucky one to whom it always seems to happen. I briefly considered signing up for direct deposit, but after that debacle a few years ago, I said fuck it and I still get a paper check to this day. Hell, when I pay my car insurance bill, I write out a check, drive to the office, and submit my payment in person.

 

[GlitterBerries]

Is it annoying it takes 5 days sometimes to show up? Yes but i always write it in my check book so i know what i have and what i don't. Doing that is the adult thing and if guests are mad for over drafting that's on them for not writing it in.

 

[BeelzeBecky]

I used to pay a boy to mow my lawn and had to pay by check. Everything else I did with my debit cards. Sometimes you gotta have checks though.
Old people have them. They don't trust this newfangled technology. Also, "my card was hacked" or "I got my identity stolen with my red card" so there are those who simply do not understand technology.

 

[Kartman]

Checks = 8 track tapes.

 

[SallyHoover]

In terms of having a check, I say "it is to prevent any kind of operator error when entering bank account and router information, the check machine can automatically get all of the information." If the guest does not have a check with them, but wants a debit card, I suggest that when they get home they rip one out, write a big VOID all over it and keep it in their wallet so they will have it with them when they come again. "No one thinks, I am going to Target let me get my checkbook." If they say the don't have any checks, I refer them to the Redcard tab at Target.com. I say they can enter their bank and account info and it goes through an additional verification process which is why they don't offer the instant approvals when applying online. Also this way if there is an error in entering the account info it isn't on the Target team member.

In term of the extra time for processing, I do let the guest know while they are signing up that "the one difference you will notice is that unlike a true bank debit card, which takes the money out instantly (snaps finger), while we call it a Target debit card but it is more like a check card. The transaction is processed through an Automated Clearing House like an electronic check. Since it is processed more like a check it takes an extra few days. This is the least expensive way for Target to process the transaction, so in turn we can pass the savings onto the guest"


I really don't think the payroll processing with is also AHC takes as long as redcard debit processing. My personal belief is that Target did go the cheapest way possible (like 3rd class mail) which allow vendors who pay more for the service to go ahead and Targets gets processed when the system has nothing else to do. But that's speculation on my part.

 

[SFSFun]

I hate to sound snarky l, but why would people have paper checks? Hardly anyone does anymore. I take very few checks out of registers at closing. They are a pain to use. I use auto debit or bill pay with my checking acct. I also have direct deposit. It's weird to me that people want to take a paper pay check to a bank and stand in line to deposit or cash it.

I pay for most government related expenses, such as car registration and income tax with a check. I also use it to pay my rent every month, since it gives me an excuse to go to the office and chat with the manager. I also use checks as an instant bank transfer between my two banks. Just write myself a check and then deposit it electronically using my phone.

 

[Hardlinesmaster]

I write checks for my house payment. I got hacked once.

 

[SFSFun]

I love how the OP starts this conspiracy theory shit and then doesn't post in here again.

 

[HardlinesFour]

I write checks for a few things. I certainly don't trust the Online Bill Pay Checks that can be sent for free. Not all of them will have your name printed on them, just the account number you type in.. and that can confuse & mess up your payments with people. Online Bill Pay works great for simple things, where the banks can electronically send it to the payee, but you should avoid the manual ones that ask for an address.

If you have very good credit/standing at the bank you have your account with, sometimes they'll allow your checks to instantly clear. And that can be a lot faster than account to account transfers. As @SFSFun pointed out. It can also save you on fees, as some banks charge for transfers.

 

[lovecats]

I just paid off my Target M/C ( why did they change that from the Visa?). I was paying 17.99% on it and paid it off with my Amazon Visa for 0.0% until next April when it goes to the regular 9.9%. I'm getting ready to start Medicare and am really trying to cut back.

 

[desertcoyote]

I still use checks. Rent for my apartment and the water bill. The water bill is a pain because i actually have to mail it. What do you mean I have to buy stamps? LOL.

I got a letter last year that explained to me that using my Target Debit Card was exactly like writing a check and that it would take a few days, just like a check, to clear.