Chipless Target Visa!!!!!!!!!!!!!!!

Smart payment card expansion in the USA received a major setback as Target confirmed it is removing the smart card feature from all of its VISA cards over the next twelve months. Target was the first major retailer to embrace smart cards on a national basis, launching its "smart VISA" card in November 2001 with plans to deploy smart card terminals in its stores nationwide.

from cardweb.com


Ron.

 

TARGET KILLS SMART CARD PROGRAM, CITING LOW ADOPTION


In a blow to smart cards in the United States, Target Corp. confirmed today that it plans to phase out its smart card program over the next 12 months. "We are doing this because of low adoption of the smart couponing program by our guests," a Target spokesperson tells CardLine. The nation's No. 2 retailer issued a statement calling the Target Visa credit card "one of the most successful financial products ever introduced at Target, with more than 9 million accounts opened since the card launched in fall 2001." The statement, however, went on to say that the only feature requiring a chip, the "smart coupon" program that allows consumers to download coupons onto the smart card chip over the Internet or at store kiosks "experienced limited use by our guests. Therefore, Target will phase out the smart chip on its Target Visa beginning this summer."

 

ARGET PULLBACK DISAPPOINTS SMART CARD EXECUTIVES


Today's decision by Target Corp. to phase out the smart card chip on its Visa-branded credit card is disappointing, but not a reflection on smart cards, says Randy Vanderhoof, executive director of the Smart Card Alliance, a Princeton Junction, NJ-based trade association. "In any kind of marketing program, there are a great deal of factors," he says. "We really haven't heard from Target as to why they're abandoning this." Minneapolis-based Target, the second-largest U.S. retailer, released a statement today saying it would stop issuing smart cards this summer because few cardholders were using Target's chip-based coupons. (CardLine Special Bulletin, 3/1.) Gary Yamamura, of Escondido, CA-based Three Point Consulting Inc., says Target's management probably decided the results from the smart card program did not justify such ongoing costs as license fees to Detroit-based Catuity Inc. for loyalty software, the expense of developing new coupon programs and the added cost of reissuing cards with chips every three years. "I'm guessing they looked at it and said, 'It's going to be a long time before this pays off. We can wait until the rest of the world goes to chip.' It's just them making a business decision that has nothing to do with whether or not the technology works," Yamamura says. Catuity issued a statement saying Target's decision would materially affect revenue and net income. The company's stock was down 33% in trading today.

 

TARGET PULLBACK DISAPPOINTS SMART CARD EXECUTIVES


Today's decision by Target Corp. to phase out the smart card chip on its Visa-branded credit card is disappointing, but not a reflection on smart cards, says Randy Vanderhoof, executive director of the Smart Card Alliance, a Princeton Junction, NJ-based trade association. "In any kind of marketing program, there are a great deal of factors," he says. "We really haven't heard from Target as to why they're abandoning this." Minneapolis-based Target, the second-largest U.S. retailer, released a statement today saying it would stop issuing smart cards this summer because few cardholders were using Target's chip-based coupons. (CardLine Special Bulletin, 3/1.) Gary Yamamura, of Escondido, CA-based Three Point Consulting Inc., says Target's management probably decided the results from the smart card program did not justify such ongoing costs as license fees to Detroit-based Catuity Inc. for loyalty software, the expense of developing new coupon programs and the added cost of reissuing cards with chips every three years. "I'm guessing they looked at it and said, 'It's going to be a long time before this pays off. We can wait until the rest of the world goes to chip.' It's just them making a business decision that has nothing to do with whether or not the technology works," Yamamura says. Catuity issued a statement saying Target's decision would materially affect revenue and net income. The company's stock was down 33% in trading today.