Target Red Card Loyalty Program for Canadians

Target is set to arrive in Canada in March 2013 and I wanted to share some valuable information with our Grocery Alerts readers about their popular loyalty program, Red Card.

The Target Red card offers a flat five per cent discount on almost all purchases made with the chain’s debit or credit card, will be available in February 2013, according to a Globe and Mail report.

In the United States, Target customers who pay with a Red card spend an average of 50 per cent more than those who don’t have a card.

Livia Zufferli, marketing director at Target Canada told the Globe that customers who collect Red card points “do see the five per cent as significant value and something that does add up.”

Comparing the Red Card program to Shoppers Optimum Program and Air Miles or Aeroplan is night and day. I like the instant 5% discount belonging to this program.

Basically, they have two main products, a Target Debit Card and a Target Credit Card.

The Target Debit Card is issued by Target Canada Co. instead of a bank. You do not need to open a new chequing account. Using a pre-authorized debit process, you link the Target Debit card directly to your existing chequing account.

To use the Target Debit Card to make a purchase at Target, you will enter a PIN to authorize the purchase. The amount of the purchase will be deducted from your existing chequing account within a few business days.

Target does not charge any fees for debit card transactions other than a service charge of $30 if your bank returns a non-payable transaction.

The Target® RBC MasterCard® is a credit card issued by RBC Royal Bank of Canada. You can use it wherever MasterCard credit cards are accepted. Besides saving 5% when you use it at Target stores in Canada, you will also earn Target GiftCard Rewards when using your Target RBC MasterCard outside of Target.

My thoughts are that the no-fee debit card is the best option as I do not like most branded store credit cards with the lack of serious benefits. We will be linking our chequing account to our Red Card in February.

I like that this program is easy to figure out and not that complicated but keep in mind that Target will have access to your shopping habits and will likely use this information in the future (I could not see any disclosure on how they use this data in the United States but do you remember this story – How Target Figured Out A Teen Girl Was Pregnant Before Her Father Did).

Are you planning on getting a Target Red Card?

Steven Zussino

Steven Zussino is the co-founder of Grocery Alerts Canada. He loves to help Canadians save money on groceries. He also runs the blog, CanadianTravelHacking.com.

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