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]

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]

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]

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]

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.

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.