New Target Debit Card to Offer 5% Purchase Discount

If you shop at Target, good news is coming this Fall. Target has promised a 5% discount on its Target Debit Card for all shopping purchases. Check out the card details…

Now the Target Debit Card is not a Visa or Mastercard credit card or even a loyalty card or store credit card. It is a debit card linked to your checking account just like any other bank debit card. So the card debits from your checking account when you pay for a transaction at Target (that’s the only place it can be used). You swipe your card through the machine when you check out at Target, input your PIN number, and it pays for your transaction by taking cash from your checking account.

Why would you want a Target Debit Card?

If you were a Target employee, and there are over 300,000 of them, this will simplify your life. Target employees are entitled to a 10% discount on store purchases, but to get that discount you have to pay in cash or check, not via credit card. Target employees are pretty loyal customers (who wouldn’t be aftering see the best merchandise and price deals all day long) and by issuing a card, the company eliminates the need to process checks on hundreds of thousands of transactions per year. Plus, the fact you can whip out a card to pay without thinking about it (the prospect of writing a check is a deterrence) helps Target increase sales just a bit.

If you’re not a Target employee, here’s the new reason to get the Target debit card. Shopper;s paradise Target will soon be releasing a cash back program for all their Target RedCards, which includes the debit card. Once this program is released in the Autumn it will give you a 5% discount on your Target purchases, which is basically the same as a 5% cash back. In other words, you’ll get an extra 5% discount if you shop and buy at Target and pay with the Target debit card.

That’s a no brainer. It rewards customer shopping at Target by giving a discount and therefore encourages more Target sales. or the company, issuing the Target debit card with a discount makes sense.

Does it really? Here’s the proof … Target has tested this 5% discount in the Kansas City area and the store sales rose between one and two percent because of all the many extra shoppers. Since this more than offset the costs, Target has decided to introduce the target debit card deal nationwide coming this Fall, possibly in October.