After years of efficiently operating its personal bank card operation through its personal Target Nationwide Bank, Target Company has offered its full bank card portfolio to TD Bank Group, and can use TD Bank as its issuing companion for future Target bank cards for not less than the following 7 years.
For the privilege, TD Bank pays Target the worth of all present receivables (unpaid bank card balances), which Target says is about $5.9 billion as of immediately. The precise sale will not be anticipated to shut, nonetheless, till someday within the first half of 2013.
So far as customers are involved, little ought to change. Target is not going to be altering any points of its REDcard bank card program, together with the present 5%-off low cost on all purchases with the cardboard.
TD Bank relies in Toronto and is mostly not regarded as a big participant in america bank card area, however the acquisition of Target’s bank card portfolio will change their standing, and is probably a step towards a bigger profile for their very own TD-branded bank cards.