Target Store Credit Cards

[CWS]

Target's about to learn and ugly lesson about the credit card business. Everything is great as long as the economy is good. A little down turn and bang. Target decided to unwrite its own cards. Not a great idea.

http://ccrmag.net/cgi-bin/readstory.pl?story=20060710CCWN680.xml

 

[tobby4]

And this lesson will hurt...

 

[cvm4]

Ouch, damn French companies :rofl:

 

[Terrasco]

It continually amazes me to see large corporations use poor judgement.

 

[DocLogic77]

I have no idea what you all are talking about.

 

[caudio51]

Wow, over 60 days. That is terrible

That is because they have everyone in the world sign up.

As you check out, would you like to sign up for a credit card and save 10%. I always say no, don't need a target card but just think of how many say yes.

 

[Kingston]

Store credit cards in general are some of the easiest cards to get, and is often somebody's first card. You can get a store card, while being denied for almost anything else.
It's no wonder they have a high default rate.

 

[CWS]

I have no idea what you all are talking about.

Credit card processing risk, the risk of moving the money from your bank to the stores bank is usually handled by non-bank processors with years of experience in observing and routing out fraud. Target decided to bypass that process and pick up and extra 2 to 5 cents a transaction in profits. They apparently didn't invest that in risk management as they are losing ther shirts in bad debt.

 

[Kingston]

Credit card processing risk, the risk of moving the money from your bank to the stores bank is usually handled by non-bank processors with years of experience in observing and routing out fraud. Target decided to bypass that process and pick up and extra 2 to 5 cents a transaction in profits. They apparently didn't invest that in risk management as they are losing ther shirts in bad debt.

I'm sure Wal-Mart will be paying attention, if/when they start doing their own cc processing.

 

[caudio51]

It's just not a smart idea to put all your eggs in one basket so to say.

Hope it doesn't come back to bite them. I really enjoy that store.