Target gives new credit card applicants proprietary Target cards

Target swaps credit card

MINNEAPOLIS — Target Corp. will stop issuing Visa credit cards to its shoppers and will instead offer new cardholders access to the company’s proprietary credit card, the retailer known for its cheap-chic designs said Tuesday.

The change, which takes effect next Thursday, won’t affect current Target Visa card holders. That group makes up about 70 percent of the retailer’s total credit card holders.

Target said its research shows that shoppers who use the in-house credit cards, which it began issuing in 1995, tended to spend more money than those with the Visa cards.

“The whole purpose is to drive retail sales and this is doing that,” said spokesman Eric Hausman.

Target, which has more than 1,700 stores, is headquartered Minneapolis.

Its shares fell 7 cents to $56 per share in afternoon trading.