Target Corp is taking the Visa out of its proprietary credit card, issuing instead a Target Credit card to qualifying card applicants in a move it says should spur more sales, the discount retailer said on Tuesday.
Customers will only be able to use the new credit card at Target stores and Target.com, rather than at establishments that take Visa . Target, one of the few retailers that still services its own credit cards, will have to fund fewer receivables as a result of the move, the company said.
In tests conducted over the last several months, customers spent more at Target when issued Target Credit cards than when they were issued Target Visa cards, the retailer said.
Current holders of Target Visa cards will not be affected by the change, the company said.
(Reporting by Brad Dorfman, editing by Maureen Bavdek)