• Target finally sells its credit card business

    Tags: Payments

Target agreed to sell its credit card portfolio to Toronto-Dominion Bank, nearly two years after the retailer said it wanted to unload the business, according to a report from Reuters.

When the deal closes, TD will pay an amount equal to the gross value of the outstanding receivables — valued at $5.9 billion — after having signed a 7-year agreement to be the exclusive issuer of Target-branded Visa and private-label cards in the United States. 

The deal gives Toronto-based TD, the sixth-largest bank in North America, a way to expand its credit card portfolio, also allowing Target to cut debt as it expands retail operations, according to the report. Under terms of the deal, Target will keep earning a substantial portion of profits generated by its credit card and Visa portfolios. While still subject to regulatory approval, the deal is expected to be completed during the first half of 2013.

"We have a great product," Terry Scully, Target's president of financial and retail services, told the Star Tribune. "There's no question the portfolio is performing well. But we are a retailer. [The credit card business] exists to support retail sales."

Read more about retail payments.

Related Content

User Comments – Give us your opinion!
Products & Services

PaySite Bill Payment Kiosk

http://global.networldalliance.com/new/images/products/PaysiteRed_100.gif

250/PaySite-Bill-Payment-Kiosk

The Dot™

http://global.networldalliance.com/new/images/products/4170.png

4170/The-Dot

Turnkey Digital Out-of-Home

http://global.networldalliance.com/new/images/products/EnQii_turnkey_100.gif

183/Turnkey-Digital-Out-of-Home

Giant Foods Shopping Solutions Kiosk

http://global.networldalliance.com/new/images/products/giant.gif

151/Giant-Foods-Shopping-Solutions-Kiosk

Slabb X6 Transaction Processing

http://global.networldalliance.com/new/images/products/2193.png

2193/Slabb-X6-Transaction-Processing

Retail Experience Designer

http://global.networldalliance.com/new/images/products/3778.png

3778/Retail-Experience-Designer

Big Impact Professional-Grade LCD | 70” NEC P701

http://global.networldalliance.com/new/images/products/4701.png

4701/Big-Impact-Professional-Grade-LCD-70-NEC-P701

Slabb X8E Interactive Digital Signage

http://global.networldalliance.com/new/images/products/7029.png

7029/Slabb-X8E-Interactive-Digital-Signage

PeopleMatter LEARN™

http://global.networldalliance.com/new/images/products/4627.png

4627/PeopleMatter-LEARN

Total-Customer Service

http://global.networldalliance.com/new/images/products/6205.png

6205/Total-Customer-Service

Vend and PayPal White Paper
CONNECT 2014 Mobile Innovation Summit
Request Information From Suppliers
Save time looking for suppliers. Complete this form to submit a Request for Information to our entire network of partners.