American discount store chain Target
Corporation is to discontinue its Visa-branded credit cards in
favour of its own card brand.
The switch to Target credit cards, which will
become effective at the end of this month, comes after research
undertaken by the discount store shows that guests tend to spend
more at Target when issued a Target credit card instead of a Target
Visa.
Jennifer Doidge, senior business leader for
corporate relations at Visa Inc told CI: “We respect
Target’s business decision to move ahead promoting their
proprietary cards. We look forward to working with Target to
provide existing Visa Target cardholders with the value they have
come to enjoy, with a product that can be used both in Target
stores, and at millions of merchant locations worldwide.”
Target Corporation has advised that existing
Target Visa Credit Card holders will not be affected.
Terry Scully, president, Target Financial
Services, said: “Our financial products are designed to deepen
relationships with our retail guests and drive profitable sales for
Target.”
“Recent product testing and guest research
underscores the tremendous value enjoyed by Target Credit Card
guests. Target benefits from these powerful guest relationships
through increased trip frequency and retail sales.”
