Target National Bank - Card Selloff?

**Finance Globe** · March 13th, 2008, 12:06 AM

I know that Target is a huge topic on this site, so I thought that this will be a good topic. It just hit the streets today that Target (National Bank) may sell around half of its credit card accounts to an undisclosed company/bank.

[Excerpt:] Target Corp., the second-biggest U.S. discount retailer, said it's in talks to sell about half of its credit-card loans for $4 billion.

Selling part of the $8.3 billion loan portfolio would give Target cash to build stores and buy some of the $10 billion of stock it plans to repurchase, spokeswoman Lena Michaud said in an interview today. The company didn't name the potential buyer. Target rose 1.8 percent after U.S. markets closed.
http://www.bloomberg.com/apps/news?p...amp;refer=u s

**smcc** · March 17th, 2008, 08:09 AM

Hey Finance Globe I work for a company that processes Credit/Debit card Transactions for Banks, Companies, etc.. Are they selling the accounts or do they want an outside source to process the transactions? Why not out source all their credit card transactions and free up the funds to do whatever?

**Meya** · March 17th, 2008, 09:54 AM

Thank God I closed them. I wonder if they are going to close accounts that does not qualify for the new bank standards.

**Finance Globe** · March 17th, 2008, 06:49 PM

Smcc, So far it appears that Target will either sell of its store card or Visa card completely. My guess is that it will be the Visa. Target will still be able to track in store purchases for the reward benefit. It's still too early to see because Target National Bank has not released the terms of the deal.

**Eric** · April 6th, 2008, 03:49 PM

That would be interesting if that sell went through...personally Im thinking about closing my target card because I dont use it all that much...my wife uses it more than I do...Id rather her use my NFL Visa there so I can get the points...Targets point system sucks...for every $1000 you spend you get 10% off on your next purchase which has to be on your target card? Give me a break.

**lyyssa01** · April 7th, 2008, 09:12 AM

That 10% coupon has an expiration has well. I got the coupon once when I had the card, but never got the chance to use it as the coupon expired before we went to Target. Which the expiration isn't a big deal for you big city folks, but for us rural bumpkins we're SOL.

**Meya** · April 7th, 2008, 07:39 PM

Psssst, whatever, the city people wil knock you down over a 5% coupon...lol. A discount is a discount regardless to what. Mines expired too, but I was able to get it back from the department store manager.

**eugene66** · August 16th, 2009, 04:19 PM

We now know who the buyer is (Chase) and how has that transaction benefited cardholders .....

**Meya** · August 18th, 2009, 02:12 PM

Chase?

**hjm331** · August 18th, 2009, 02:43 PM

Chase bought half of Target's credit card accounts today.

http://www.insidearm.com/go/arm-news...r-3-6-billion/

**ColoNative** · August 18th, 2009, 03:05 PM

Some of those articles are from last year. I know they were thinking about it, but did they really do it? I know there are some Chase haters out there, but I would rather have Chase then GEMB or HSBC handle the card. I wish retailers had their own cards still, these banks really don't seem to care about customer service.

Macy's and Best Buy used to have a dualty card issuer, very strange.

**hjm331** · August 18th, 2009, 03:55 PM

The article in the link I provided was posted today.

**charonh** · August 19th, 2009, 12:05 AM

Thanks so much for this info hjm331. I will be paying mine off this month, because I refuse to deal with Chase for anymore cards as a result of acquisition. What gets me is that Chase doesn't deal with sub prime borrowers, yet they buy Wamu and now this. Wamu, it made sense because of the bank branches they acquired, but Target, huh with their large share of sub prime cardholders. In Georgia, all of the old Wamu signs have been officially changed to Chase. ColoNative, you're right, there are a lot of Chase haters out here, myself being one.