Canada's TD Bank Group has wrapped up the acquisition of Target's US Visa and private label card portfolio, for an undisclosed sum.
The lender has also inked a seven-year program agreement to act as the exclusive issuer of Target-branded Visa and private label consumer credit cards to its US customers.
TD has bought over 5 million active Visa and private label accounts, with a gross outstanding balance of $5.7bn, and will fund the receivables for existing Target Visa and all existing and newly issued private label accounts in the US.
TD Bank Group North American credit cards and merchant services executive vice president Michael Rhodes said, "Target’s REDcard value proposition and extensive store network will help us continue to expand our growing North American card business."
As per terms of the program agreement, Target will be responsible for all aspects of operations and customer service and bears most operating costs to service the assets.
The acquirer will control risk management policies, oversees regulatory compliance and bears all costs related to funding the portfolio.
TD Bank Group serves almost 22 million customers in four key businesses operating in various locations in key financial centers worldwide and had C$818bn in assets on 31 January 2013.