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TD Bank Cements Deal to Issue Target Credit Cards

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TD Bank Cements Deal to Issue Target Credit Cards

The acquisition of Target’s U.S. Visa and private label card portfolio by Toronto Dominion (TD) Bank was finalized last week. TD Bank will be the exclusive issuer of Target credit cards in the United States for the next seven years under this agreement, which was announced in October of last year.

TD now owns over five million active Visa and private label Target store card accounts, with a gross outstanding balance of $5.7 billion. The deal helps the bank expand its North American presence.

TD Bank and its subsidiaries make up the sixth largest bank in North America and serve about 22 million customers. Target has over 1,700 retail locations across the United States as well as serving customers at They plan to open 105 stores throughout all ten Canadian provinces by the end of this year.

Target and TD Bank to work together

Over the next seven years, TD Bank and Target will share all profits generated by the card portfolios, but Target will have the larger interest. Target will be in charge of operations and customer service and will pay most of the operating costs under the agreement.

TD Bank will fund all portfolio costs, control risk management policy and ensure regulatory compliance. The Canada-based company will also send a team to Target’s Minneapolis headquarters to work with Target staffers heading up the card program.

REDcard rewards will remain

Consumers who have the Target REDcard should not expect any impact on their personal accounts. The Target 5% REDcard Rewards program will not be changed, and Target employees will still service accounts as they have previously. The sale of the card portfolio will have minimal impact on cardholders, shoppers and employees, according to Target.

Target REDcard Rewards give cardholders an automatic 5% savings on all purchases at Target stores and online at They also get free shipping from and an extra 30 days to return purchases.  All cardholder terms and conditions will remain the same under TD Bank’s ownership of the Target card portfolio.

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