Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.
The retailer exits the credit card business in a deal with TD Bank Group.
Target (TGT 0.01%) has completed the sale of its consumer credit card portfolio to TD Bank, which acquired the business for $5.7 billion. That amount is the gross value of the portfolio's outstanding receivables.
The deal mandates the bank to underwrite, fund, and own receivables from the retailer's branded store card and its Visa card for a period of seven years. For its part, over that span of time Target is obligated to continue to provide all servicing for the accounts of those cards.
Target said it expects to book a pre-tax gain of $393 million on the sale in its Q1 2013 results.
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
Alert: Top Cash Back Card Now Offers 0% Intro APR Until Nearly 2027
Enjoy 0% intro APR on purchases and balance transfers for 15 months—plus up to 5% cash back in popular categories.
Motley Fool Returns
Market-beating stocks from our flagship service.
Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 2025-08-29 04:06:02.555911.
Discounted offers are only available to new members. Stock Advisor list price is $199 per year.
Calculated by Time-Weighted Return since 2002. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.
