Anyone get the new Target Debit Card?

[disneysteve]

My wife and I are intrigued by the new Target Debit Card offer. We shop there regularly for housewares, toiletries, paper goods, some food items and occasional clothing and accessories. Rarely does a week go by without at least one trip to Target. So when we saw the new card advertised, it caught our attention.

The deal is that they now offer a Target Debit Card tied to your bank account. All purchases made with that card (with a few minor exceptions that don't apply to us) get an immediate 5% discount at the time of purchase. No reward points to accumulate or redeem, no certificates to request, no rules to follow.

I've read all of the fine print and I can't see any catch to this deal. It just sounds a little too good to be true that they would give everyone 5% off all purchases just for using this card. I reviewed our credit card statements for the past 6 months and during that time, we spent over $1,600 at Target. This card would have saved us over $80 on those purchases. I'm all ready to sign up but just want to be sure I'm not missing anything so I was wondering if any of you have gotten the card yet and what your experience has been.

[Joan.of.the.Arch]

There has been some talk of this over in the blogs. I think it was Thrift-o-rama who first brought it up. Target Red Card?: Thrift-o-rama and the quest for a Tiki Bar It seems Target also offers the same 5% discount if you get their credit card, which, as you know, is probably safer than the debit card as it does not link directly to your bank account.

[MonkeyMama]

I applied for the credit card for 5% off. IT's been out there for a while.

[disneysteve]

Thanks for the link, Joan. I didn't know the credit card did the same thing. I would much rather get a CC than a debit card. I will check into that.

[scfr]

The Target CC with 5% automatically off all purchases came out about a month ago. Yes, I got one, since I shop there a couple times a month. Opened it right at the cash register. I'm one of those folks who will NEVER have a debit card.

[snafu]

scfr: why no debit card? is there something to fear?

[scfr]

I know 2 people who have had money stolen from their accounts because of their debit cards.

Debit card scams

The dark secrets of debit

[My English Castle]

I think they're doing a good job tempting us with the Red CC. I'm sorely tempted myself. And Target is one of my weaknesses.

[rplayman]

Debit cards come with the same protections as credit cards. As a general rule, if it's not your charge, you don't pay.

[disneysteve]

Originally Posted by rplayman

Debit cards come with the same protections as credit cards. As a general rule, if it's not your charge, you don't pay.

I hear this over and over and in the end, it is true, but along the way it is definitely not true.

If there is a fraudulent charge to my debit card, the money is gone from my account instantly. I am out that money until the bank tracks down the problem and restores the funds. In the meantime, I could be in trouble and checks could bounce.

If there is a fraudulent charge to my credit card, I just don't pay it. The credit card company investigates and removes the charge. But at no time am I actually out that money, even temporarily.

[nick__45]

What about the people who don't shop at Target? Anything from Walmart? I don't shop at Target because I usually go to these kinds of stores very late and all Walmarts here are 24/7.

[southerndoc]

Originally Posted by rplayman

Debit cards come with the same protections as credit cards. As a general rule, if it's not your charge, you don't pay.

That's only true of the debit cards that carry Visa or Mastercard logos.

A Target debit card probably isn't done through Visa or MC, so likely isn't afforded the same protection.

[marvholly]

I generally do not shop at Target very much. It is just not terribly convient locationwise. However, there is one store 1/4 mile from my Dad. Therefore, I got the cc.

Saved him $0.65 on 2 pair of sweat pants last Wed.

I also do a MAJOR shop for grandkids gifts when they do the toy clearance in Aug.

It costs me NOTHING & saves me/him some so why not? Some people have expressed outrage at the interest rate BUT, like you DS, I do NOT remember the last time I paid interest on any bill. Also, reading my paperwork, the rate is 13.99% which is actually not bad.

[jpg7n16]

Originally Posted by marvholly

Also, reading my paperwork, the rate is 13.99% which is actually not bad.

Yes it is.

The best investment in the world expects between 7-11%. Many cards are under 10%.

Don't let your mind convince you that 14% is "not that bad." It's terrible. 20%+ is even worse.

Either pay cash, or set aside enough cash to pay it off immediately at the end of the month. 0% is much better.

[disneysteve]

Originally Posted by marvholly

Some people have expressed outrage at the interest rate BUT, like you DS, I do NOT remember the last time I paid interest on any bill. Also, reading my paperwork, the rate is 13.99% which is actually not bad.

Originally Posted by jpg7n16

Yes it is.

I agree that the rate is terrible but I think marvholly's point was that if you never carry a balance and always pay your bill in full, it really doesn't matter. I don't care if the rate is 2%, 20% or 200%. I'm not paying any interest no matter what.

[jpg7n16]

Originally Posted by disneysteve

I agree that the rate is terrible but I think marvholly's point was that if you never carry a balance and always pay your bill in full, it really doesn't matter.

Oh- I read his post as saying, "I normally pay it off and avoid interest, but if worse came to worse and I had a balance owed, it'd only charge me 14% - which isn't that bad"

Which for other readers, I wanted to clarify that 14% is not okay. It's bad. Maybe some cards out there are even worse, but 14% is still bad.

I don't think you, me, or Marv would end up paying any interest at all, but another reader considering the card - who carries balances regularly on other cards, might be misled into thinking that 14% is a good rate. In an attempt to save 5%, they may get charged more than they bargained for, unless they do like you and Marv do and set aside the cash to pay it off each month.

[krantcents]

Thanks for the info, I did not know anyone who had the Target credit or debit cards.

[creditcardfree]

I am so tempted to get the credit card. I shop Target all the time. I'm less than 3 minutes away. It's my go to store. I have yet to cave. If someone asks me, I'm sure I'll say yes. In many ways, I now feel like I'm getting charged 5% extra because I don't have their card!

[disneysteve]

Originally Posted by creditcardfree

I now feel like I'm getting charged 5% extra because I don't have their card!

Our thought exactly. Other than having another CC on our record, I just can't see any downside to getting this card. We shop there all the time. Literally, it is rare for a week to go buy without at least one visit to Target. We even shop there when we are on vacation. A 5% discount just for using their card is a no-brainer to us.

I thought of this thread when I posted my thread earlier today about the new debit card discounts that may be coming in a few months. I think this is a trend that we will see more and more of. On a similar note, there is a gas station near our house that just changed brands this week and is now Citgo. The new price board has one price for cash or Citgo card purchases and a higher price for all other credit card purchases. The Target deal is even better because with their card, you pay less than cash customers.

[neguy11]

I've had the Debit card for a week now and love it. It takes a few days before the money is ACH'ed out of your account, so you need to make sure you write it down. I even get 5% off my prepaid cell phone airtime cards. Love it so far!