Target red card people- catch?

[Marionnette]

Ooooooooooh. I see now. I misread. Target is rolling out a new prepaid redcard that runs on the AmEx network. Walmart has a version called BlueBird (which is awful, BTW) - you might've run across the name in connection with the savings catcher. As in 'load your savings catcher savings onto Bluebird and double your money!' Basically, it's a product where you load money (from either a debit card, credit card, gift card or good old cash) and then spend it. You can link it to a checking account if you'd like, but you don't have to. You can use it exclusively at Target, but you don't have to. You can use it to pay bills if you want to (which is how I've always used this sort of thing). Load Redbird (which is what they're calling it, I think) from your miles earning credit card ---> use Redbird to buy your Target stuff ---> earn miles by using your card as well as save 5% for using your Target branded prepaid card. It's pretty genius.

Like I said, it's getting some play in points/miles circles because there's a bill pay feature. Personally, I load the card at my Target and then use the bill pay system to pay bills that won't take credit cards. That way I get points for paying that bill, and my electric bill gets paid with a check the same way it would if I used bill pay through Wells Fargo. Everyone is a winner.

Read all about it. https://amex.serve.com/prepaidredcard/?ref=sr_shorturl_prepaidredcard

My personal opinion is that something like this is the future of online shopping and data protection. I mean, why would I ever have to use a credit or debit card online again? This doesn't link to my bank account so I can't get cleaned out that way. It has a finite amount of money on it so I don't have to worry about someone running up a $10,000 credit card bill without me noticing. I'm at Target all the time, so it's super easy to add money to and I'd get 5% off without the risk of having it on my credit report or linked to my checking account.

So, I'm looking at the terms and it appears that you're supposed to load the pre-paid card with cash? But you say that you're using a credit card to load this pre-paid card. I'm not seeing any method under their FAQs that includes using a CC to load the card. It mentions direct deposit, cash, debit card, checking or savings accounts, and request/receive money transactions.

I'm not doubting you. I just want to know how you can use a CC to load this pre-paid card without incurring fees that would negate the benefits. Wouldn't this be considered to be a "cash advance" by a credit card? And wouldn't that incur interest charges beginning with the day of the transaction (ie no grace period))? Plus, cash advances are usually not counted for accruing points/rewards.

Still trying to wrap my head around how this works because I wouldn't mind being able to get rewards for paying my electric bill this way!

 

[msmama]

With the 5% red card savings, plus cartwheel and the coupons the register spits out, doing my grocery shopping at Target is generally cheaper than my local grocery store.

I often can find ground beef (93%lean) for $2-3 off (probably because it's getting close to sell by date, but I don't care, 'cause I freeze it), plus 10% off because of the weekly flyer, 5% off cartwheel, plus and additional 5% off because of my redcard.

 

[JillianMarie]

So, I'm looking at the terms and it appears that you're supposed to load the pre-paid card with cash? But you say that you're using a credit card to load this pre-paid card. I'm not seeing any method under their FAQs that includes using a CC to load the card. It mentions direct deposit, cash, debit card, checking or savings accounts, and request/receive money transactions.

I'm not doubting you. I just want to know how you can use a CC to load this pre-paid card without incurring fees that would negate the benefits. Wouldn't this be considered to be a "cash advance" by a credit card? And wouldn't that incur interest charges beginning with the day of the transaction (ie no grace period))? Plus, cash advances are usually not counted for accruing points/rewards.

Still trying to wrap my head around how this works because I wouldn't mind being able to get rewards for paying my electric bill this way!

Totally valid question. As of right now, I'm able to swipe my credit card and it goes to my Redbird without an issue.Whether it will remain that way indefinitely, I don't know. BUT, there is a similar card called Serve. It's identical except it's not 'officially' affiliated with any store but you can add money in Walmart. And with that you can only use gift cards or cash in the actual Walmart store, but you can add up to $1000 via your computer at home with a credit card. So, even if it goes to only being able to use "cash" in stores, you *should* still be able to add a certain amount of money every month via their website from a credit card. I think what's happening is that they're just using the word cash as a catch all because I've used my credit card and I know other people who have used PIN enabled gift cards. And, while I make no promises for anyone else, at least my Chase visa doesn't incur cash advance fees of any sort and didn't when I was using Serve so I doubt they'll start anytime soon. But it completely depends on the coding of each individual card issuer. Chase codes it as regular purchase, but I've heard that Citi cards will code as cash advance. Personally, for me, it was worth testing because the return on investment if it worked was a heck of a lot higher than the $10 cash advance fee I might get hit with it didn't.

These are products that a lot of people would never even think of needing. If you need to buy something, you just go to the bank. But if you're someone who's unbanked, these sorts of things have been around for a long time, they just haven't been so slick. I think with the whole data breach issues of the past year there's a market for people who are looking for an alternative to a credit card to do online shopping. To me it makes sense that Target is getting in on a game that Walmart has had on lockdown for years.

Disclaimer: I have ZERO affiliation with this. I just think it's cool and I'm an early adopter.

 

[lauradis]

What has happened to the checking accounts linked red cards with the security breaches they have had in the past?

 

[mistysue]

I have both the Target Visa (which I seldom use) and the debut card which I use a lot. I can buy many things I need at Target and sometimes skip any other store. Not only do you get 5% off but Target will donate 1% to a school of your choice.

I bolded because I want people to notice this and most don't seem to know it. If you register your card on Target's site for a school of choice they give 1% to the school and you still get your same 5% off.

 

[Hofmanns4]

What has happened to the checking accounts linked red cards with the security breaches they have had in the past?

Nothing. From the questions I asked, only the card numbers were compromised and not the account information that Target uses to debit the bank accounts. The debit card numbers could not be used by anyone but Target to access your bank account. At least, this is what I was told back then.

I love my Red debit card from Target. Did not get the credit card as I do not see any benefit in having the credit vs debit.

 

[calypso726]

So, I'm looking at the terms and it appears that you're supposed to load the pre-paid card with cash? But you say that you're using a credit card to load this pre-paid card. I'm not seeing any method under their FAQs that includes using a CC to load the card. It mentions direct deposit, cash, debit card, checking or savings accounts, and request/receive money transactions.

I'm not doubting you. I just want to know how you can use a CC to load this pre-paid card without incurring fees that would negate the benefits. Wouldn't this be considered to be a "cash advance" by a credit card? And wouldn't that incur interest charges beginning with the day of the transaction (ie no grace period))? Plus, cash advances are usually not counted for accruing points/rewards.

Still trying to wrap my head around how this works because I wouldn't mind being able to get rewards for paying my electric bill this way!

The Target pre paid red card hasn't been rolled out nation wide yet. We can't get it in Florida but I has a friend pick one up for me in another state. It can be loaded up at any Target. The T&C does say debit and cash, however, right now loading up with credit cards is working. So far the credit card loads are posting as a purchase, not cash advance. We don't incur interest since we pay in full every month.

DH and I dabble in travel hacking (collecting miles/points) so we can travel free or nearly free. As soon as this card came out I dumped Blue Bird and jumped on it. We'll see how long it lasts.

 

[dpswift]

The "catch" is that they know people will spend more when they use plastic than they will if they are using cash. So, by luring you in with the promise of an across-the-board discount of 5%, they are operating under the assumption that you will spend your "savings" and then some.

If you can avoid the temptation to spend on impulse items, it's a pretty nice perk.

Exactly. I love my debit because it forces me not to have impulse buys.

 

[dpswift]

Nothing. From the questions I asked, only the card numbers were compromised and not the account information that Target uses to debit the bank accounts. The debit card numbers could not be used by anyone but Target to access your bank account. At least, this is what I was told back then.

I love my Red debit card from Target. Did not get the credit card as I do not see any benefit in having the credit vs debit.

I was told that it was only credit cards that were hacked.

 

[anna08]

I bolded because I want people to notice this and most don't seem to know it. If you register your card on Target's site for a school of choice they give 1% to the school and you still get your same 5% off.

This is a really great program and so easy to link your redcard online to a school in your area. Schools near us have gotten anywhere from two thousand to twenty-five thousand dollars in a year. It's a huge benefit!! Anyone who is involved with fundraisers at school or parent teacher organizations needs to look into this.

 

[ucfgirl15]

Love the target redcard debit card! I am paying for our disney cruie in GC from target. When you combine with cartwheel, register coupons and mobile coupons you can save like 20-25%.

 

[platamama]

Totally valid question. As of right now, I'm able to swipe my credit card and it goes to my Redbird without an issue.Whether it will remain that way indefinitely, I don't know. BUT, there is a similar card called Serve. It's identical except it's not 'officially' affiliated with any store but you can add money in Walmart. And with that you can only use gift cards or cash in the actual Walmart store, but you can add up to $1000 via your computer at home with a credit card. So, even if it goes to only being able to use "cash" in stores, you *should* still be able to add a certain amount of money every month via their website from a credit card. I think what's happening is that they're just using the word cash as a catch all because I've used my credit card and I know other people who have used PIN enabled gift cards. And, while I make no promises for anyone else, at least my Chase visa doesn't incur cash advance fees of any sort and didn't when I was using Serve so I doubt they'll start anytime soon. But it completely depends on the coding of each individual card issuer. Chase codes it as regular purchase, but I've heard that Citi cards will code as cash advance. Personally, for me, it was worth testing because the return on investment if it worked was a heck of a lot higher than the $10 cash advance fee I might get hit with it didn't.

These are products that a lot of people would never even think of needing. If you need to buy something, you just go to the bank. But if you're someone who's unbanked, these sorts of things have been around for a long time, they just haven't been so slick. I think with the whole data breach issues of the past year there's a market for people who are looking for an alternative to a credit card to do online shopping. To me it makes sense that Target is getting in on a game that Walmart has had on lockdown for years.

Disclaimer: I have ZERO affiliation with this. I just think it's cool and I'm an early adopter.

I have one of these too, and I LOVE it so far for the ability to load with cc -- for however long that lasts I will milk it. Will not go back to using my REDcard Target credit card as long as this one holds out.

As for Serve, as soon as cash advances starting hitting for some cards around 10/9/14 I dumped it to get this new product. Not all cards get charged a cash advance as you point out, but it's certainly something to research, at least on the wiki on the flyertalk thread about Serve, before using it. All of my cc loads on the prepaid REDcard have posted as purchases since it just shows up as Target. Presumably Target uses just one MCC for VI or MC or AMEX so I'm hopeful this avenue lasts for a while.

It's not available in every state, and a lot people have had technical issues with it too in the beginning, myself included.

(And I would so much prefer going to Target than Walmart, even though Target is 5x further for me. It also helps that my Target is next to Costco.)