News

Target to roll out loyalty program in Q3

June 18, 2003

MINNEAPOLIS -- Target Corp. is on track to roll out the loyalty program for its smart cards in the third quarter. Consumers will insert their cards into kiosks at the store entrance to receive discounts and other promotions.

Michael V. Howe, president and chief executive officer of Catuity Inc., said, "The program will check the customers' past behavior and offer them something relevant," according to an article in CardLine.

Detroit-based Catuity is working with Visa U.S.A. to provide the open-platform rewards distribution system for Target's smart card.

The card carries the Visa brand and is issued by Retailers National Bank, Target's bank. Catuity has installed the software on the smart cards and point-of-sale terminals.

Catuity's offline system saves a merchant the fee it normally pays its processor to access customer information needed to offer the best rewards program, the article said.

Manufacturers pay for the coupons or discounts offered to cardholders.