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Martin Moylan
St. Paul, Minn.

Target tests new credit card rewards program

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Minneapolis-based Target Corp. is exploring a possible change in how it rewards shoppers who carry the retailer's credit cards.

Currently, for every $1,000 or so they spend, Target cardholders receive a coupon good for ten percent off a day's worth of shopping at Target. But Target spokesman Eric Hausman said the retailer is testing alternative rewards in two markets.

"In Kansas City and San Antonio, we're running this pilot program where guests who use their Target Visa or Target credit card in our Target stores get a percent off every time they shop," he said. "In San Antonio, guests receive three percent off their transaction total. And in Kansas City, they receive five percent off their transaction total."

Hausman said there's currently no timeline for the trials or a decision about expanding the alternative rewards for shoppers.

For the nine months ending October 31st, Target had $1.5 billion in revenue from its credit card operations. During that period, the retailer earned $162 million from "plastic."