Target agrees to sell consumer credit card portfolio to TD Bank Group

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.
Author:
Updated:
Original:

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.

Next Up

Related

Target opposes proposed $7.25B settlement on credit card fees

Minneapolis-based Target Corporation has joined a growing list of more than two dozen retailers who object the propposed multi-billion dollar deal to settle a seven-year class-action lawsuit, Twin Cities Business reports. More than 7 million merchants claim Visa, MasterCard and some of the nation's largest banks fixed the fees they charge to retailers on credit card transactions. A Minneapolis-based law firm filed the case in 2005 and announced the agreement earlier this month. The class-action settlement still requires a judge's approval.

Target shares dip upon news of portfolio sale delay

Shares of Target stock dropped nearly 2 percent Wednesday morning after the Minneapolis-based retailer reported that it would temporarily delay its efforts to sell the portfolio containing the balances credit card holders owe the company. The Associated Press reports that the company does not expect to sell the portfolio until later this year or early next.

Target's five-percent-off credit card is a hit

Target says customers who have Redcards are spending about 50 percent more at Target stores than they did in their pre-card days. That has more than offset the cost of the five percent discount. It was also a factor in the six percent increase in first-quarter sales.

Target offers same-sex marriage greeting cards

The Minneapolis-based discount giant has not taken a stance on the controversial amendment to ban same-sex marriage in Minnesota, but Target stores are now selling greeting cards honoring gay couples. The cards feature phrases like "Mr. & Mr." and "Two very special women, one very special love."

Target to debut new cast of holiday characters

After three years, Target Corp. is replacing the Christmas Champ, the crazed Target lady in a red jumpsuit played by Minnesota-native Maria Bamford, with the Deals Duet. The Business Journal reports the Minneapolis-based retailer will debut its holiday marketing campaign on Wednesday.