Target RedCard Review – Debit Card With 5% Discounts at Target

Debit cards: they’re not just for banks anymore.

The Target RedCard Debit Card is a great example of a debit card that doesn’t require users to throw in their lot with any particular bank. As long as you have an account with an FDIC-insured, U.S.-based bank, you can set up your RedCard Debit Card to draw funds directly from that account to cover purchases made at Target stores and Target.com.

With 5% off on most online and in-store Target purchases and free two-day shipping on most Target.com purchases, the Target RedCard Debit Card is a potentially lucrative spending aid for frequent Target shoppers. It has some other benefits that bear mention, too. So let’s take a closer look at this card’s features, advantages, drawbacks, and overall suitability.

How the Target RedCard Debit Card Stacks Up

The Target RedCard Debit Card is a tough act to follow. It’s one of the best retail debit cards around, in fact.

But it’s not perfect, so it’s worth comparing against other popular retail payment cards. Here’s how the RedCard Debit Card stacks up against another big-name option: the Amazon Prime Rewards Visa Credit Card.

Key Features of the Target RedCard Debit Card

The Target RedCard Debit Card is a must-have for frequent Target and Target.com shoppers. Here’s why it’s so valuable.

Discounts at Target

The Target RedCard Debit Card automatically discounts most Target purchases by 5% at the point of sale – online or at the register – subject to certain important restrictions and limitations. Transaction types that may not qualify for the 5% discount include:

• Spending at restaurants inside Target, including those ubiquitous in-store Starbucks cafes
• Eye exams and other services at Target Optical
• Prescriptions, clinic services, and non-prescription items stored behind the counter at Target pharmacies
• Gift wrap purchases
• Wireless protection program payments and deposits

Outside these restricted categories, the 5% discount is functionally unlimited. Bear in mind that split payments only earn the discount on the portion applied to your RedCard. For instance, if you split a $100 order 50/50 between your RedCard and a cash back credit card, your discount will be $2.50, or 5% of $50.

Remember: RedCard doesn’t work at non-Target vendors.

Additional Benefits of the Target RedCard Debit Card

The Target RedCard Debit Card’s other noteworthy benefits include.

• Free Standard 2-Day Shipping: When you pay for orders from Target.com with your RedCard, you get free standard 2-day shipping to the United States (including Puerto Rico and APO/FPO addresses). Expedited shipping is subject to shipping fees.
• Free Same-Day Delivery With Shipt: When you opt for same-day Shipt shipping on eligible Target.com orders, you’ll get free shipping as well.
• Extended Return Windows: On most merchandise, you’ll have 30 extra days to return purchased items after the regular return window expires. Key exclusions include all-sales-final items, Target Mobile purchases, and items with pre-determined return dates.
• Target Subscription Savings: You’ll get another 5% off (10% off in total, including the RedCard discount) when you subscribe to receive select essentials on a recurring basis.
• Clearance and Top Deals Savings: Clearance-marked items and weekly Top Deals items are also subject to a bonus 5% off. RedCard users qualify for exclusive discounts and special offers not available to regular Target shoppers.
• Specialty Gift Cards: Specialty gift cards not excluded from the 5% RedCard discount earn bonus 5% off, for a total discount of 10%. If you’re not sure which gift cards qualify, check the fine print at Target.com or ask a sales associate in-store.
• Target Wallet Feature. Add your RedCard to your Target Wallet for seamless, contactless payment at checkout kiosks.

Important Fees of the Target RedCard Debit Card

This card has no annual fees or monthly maintenance fees. Check your cardholder agreement for less common fees and restrictions.

Advantages of the Target RedCard Debit Card

The Target RedCard Debit Card is one of the best debit cards on the market, period. And if you shop in-person at Target or online at Target.com, there’s no reason not to keep it at the ready.

• Expansive 5% Discount. Setting aside the important exceptions noted above and reiterated below, the Target RedCard Debit Card promises 5% off most in-store and Target.com purchases. That’s better than the average rate of return on all but the most generous rewards credit cards.
• Save 5% at Starbucks Locations Inside Target Stores. For the longest time, RedCard excluded in-store Starbucks purchases from the 5% discount. Not anymore — now you’re guaranteed to save 5% on in-Target Starbucks purchases, just as you do on all other eligible Target store purchases.
• Free Two-day Shipping on Target.com Purchases. RedCard users qualify for free two-day shipping on Target.com purchases, subject to certain exceptions and restrictions. Expedited shipping still incurs a fee.
• Free Same-day Shipping With Shipt. Opt for Shipt delivery and get free same-day shipping on eligible Target.com purchases with your RedCard debit card too.
• Extended Returns on Most Items. RedCard users also qualify for extended return windows on most Target purchases – 30 days more to decide whether they really need something.
• Opportunities to Earn 5% Bonus Savings on Select Transactions. Select types of RedCard spending earn 5% bonus savings, for a total savings of 10% off sticker price. This includes clearance-marked items, Top Deals items, subscription products, and specialty gift cards.
• No Interest Charges or Long-term Debt. This is not a standard credit card. It’s not a retail store-issued credit card. It’s not a personal loan or line of credit. In fact, it’s not a credit product at all, which means no exposure to interest charges or risk of long-term debt.
• No Credit Check Required. As long as you have a valid checking account and can prove your identity, you’re likely to qualify for a RedCard Debit Card. There’s no credit check required.
• No Regular Fees. This card doesn’t have an annual fee or monthly maintenance fee. As long as you use the card as intended and keep your linked bank account open, you’re unlikely to ever incur a fee with use.
• Seamless Application. It’s super-easy to apply for the Target RedCard Debit Card. You can apply in-store at checkout or online at your convenience – you’ll just need to provide your bank account details and some basic demographic information to get started.

Disadvantages of the Target RedCard Debit Card

No debit card is perfect, and the Target RedCard debit card is no exception. The biggest drawback, aside from key exceptions to the 5% discount rule, is the fact that this card only works at target. In effect, it’s a store debit card.

• Important Exceptions to the 5% Discount Rule. The 5% RedCard discount isn’t quite universal. Notable exceptions include restaurants (except Starbucks) inside Target stores, prescriptions and clinic services at Target pharmacies, Target gift cards and prepaid cards, and gift wrap.
• Doesn’t Work Outside Target. The Target RedCard Debit Card isn’t part of a payment processing network such as Visa or Mastercard, so it’s only eligible for use at Target stores and at Target.com. This is a major drawback for applicants hoping to replace their bank-issued debit card entirely.
• No Way to Carry a Balance from Month to Month. While it’s best to pay off credit card balances in full by your statement due date, carrying a balance is sometimes unavoidable or (in rarer cases) even advisable. You can’t do that with this debit card. If you qualify, the Target RedCard Credit Card does allow carried balances.
• Doesn’t Build Credit. On the bright side, you don’t need to submit to a credit check (which can temporarily depress your credit score) when you apply for this card. On the other hand, this card won’t build your credit or improve your credit score.

Final Word

Target doesn’t have a monopoly on non-bank debit cards. Reloadable prepaid debit cards are taking the country by storm, offering low fees, flexible load options, and sensible budgeting tools for consumers who’d rather not deal with traditional bank accounts. Most belong to major payment networks like Visa, Mastercard, and American Express, so their use isn’t restricted to a single retail ecosystem a la the RedCard Debit Card.

Of course, reloadable prepaid debit cards can’t compete with the RedCard Debit Card on the most important metric of all: card rewards, or store discounts in this case. If you’re a frequent Target customer looking to trim your monthly shopping bill, it’s hard to argue with 5% off (nearly) across the board.