Target red card debit card review

The target red card debit card is  not a prepaid card, its not a credit card, although a credit card version does exist.This debit card is electronically linked to your bank checking account.It does not carry any balance on its own, and whatever funds are available on your checking account.If you are a regular shopper here,it would be a very good idea to take advantage of the 5% daily benefit that the card offers.

 

Whats good

1.Cashback-When using your red card debit card you can avail upto a $40 cashback on all in store purchases

2.Ach Clearing-There are two different opions about ACH clearing.First the good.Since the red card uses the Automated Clearing House network  to clear and process transaction.The difference between the ACH network and standard bank regulated debit clearing is that, ACH takes upto 3 days longer. In case of theft of loss of card,this is more than sufficient time to stop the payment and prevent further misuse of the card.In case of the regular debit account clearing within a span of 24 hours,your entire checking balance cold possibly be compromised.

3.Checking Account- Having the target red card linked to your checking acccont can have its advantages too.There is absolutely no limit to what you can spend.Its your own money and you wont even be charged interest on it.Better than a prepaid card,and way better than a credit card.So next time you go shopping here and come across something you fancy, there shouldnt be anything to stop you.Easily shop with liberty.

4.Fees-Having a shopping card in your pocket that has no limits,no fees,no penalties,no overdraft charges,late payment charges,annual fees charges is like a dream come true.But be careful, something so easy could get you to spend more!

5.Social-Being the nice guys they are back at Target, every 1% of your bill goes to any participating k12 school that is affiliated with the their program.

6.Online Management-Easy to use and navigate through, you can use the online interface to check transaction history,payment and purchase information easily.

 

Whats not

1.Security- There has been alot of talk about security concerns of retail debit cards linked to checking accounts.Unlike Prepaid cards that have only a definite amount of funds loaded,checking accounts can have almost any amount of money.This would be risky if in case of fraud,and you could end up losing a fortune.

2.Mobile-Your Target red card cannot be used to shop via any handheld devices.This is a shame as mobile internet users constitute a bulk of web traffic.

3.ACH-Just like above we highlighted the good part of Automated clearing house,means that transaction show up roughly 3-4 days after purchases have been made on your account.This can get  a little messy if you are a frequent user of the card,as it could lead to a messy financial account.You wont have  clear picture for  a long time and could even end up overspending.Some customers even reported not being allowed to use the card more than 4 times in succession in a short period of time,until the previous transaction were cleared.

4.Credit-Just like a prepaid card,and unlike a credit card,no matter how much you spend through the card,since its not credit based,it wont be mentioned on your credit report and wont go towards increasing you credit score in any way.

 

As seen from the above points,the pros definitely outweigh the cons.If you shop alot,at Target and this includes lots of household items,it would make sense to opt for the card,as 5% can go a long way.

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