Toronto-based TD Bank Group will acquire Target's consumer credit card portfolio for nearly $6 billion, according to a company news release. The Minneapolis-based retail giant has also entered into a seven-year agreement under which TD Bank will underwrite, fund and own future Target Credit Card and Target Visa receivables in the U.S.
Target says the deal does not have any impact on its Redcard Rewards program, which offers cardholders a five percent discount on purchases.
Target has been trying to sell its credit card business since January 2011.
In New York last week, CEO Gregg Steinhafel said the retailer was committed to selling its credit card receivables by the end of the year, the Business Journal reports.