TD Bank Group today announced the completion of its transaction with Target Corporation, in which TD has acquired Target’s U.S. Visa and private label card portfolio and entered into a seven-year program agreement to be the exclusive issuer of Target-branded Visa and private label consumer credit cards to Target’s U.S. customers.
“Target’s REDcard value proposition and extensive store network will help us continue to expand our growing North American card business,” says Michael Rhodes, executive vice president, North American credit cards and merchant services, TD Bank Group.
With this transaction, TD has acquired more than 5 million active Visa and private label accounts, with a gross outstanding balance of $5.7 billion, and will fund the receivables for existing Target Visa accounts and all existing and newly issued Target private label accounts in the U.S.
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Under the terms of the agreement, Target is responsible for all elements of operations and customer service and bears most operating costs to service the assets. TD controls risk management policies, oversees regulatory compliance and bears all costs related to funding the portfolio.