This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. For an explanation of our Advertising Policy, visit this page.

Target is testing out a new loyalty program, Target Red, which would offer customers cash back and discounts on delivery.

As part of the program, Target Red members would receive 1% cash back on purchases that they can redeem on their next visit, free next-day delivery with Target Restock and half off a Shipt grocery delivery membership. Currently the program is only being tested in the Dallas-Fort Worth area, and it is an entirely different program than Target REDcard, which offers customers a Target debit or credit card.

Target REDcard members can sign up for Target Red, but they will not be able to stack the 5% REDcard discount with the loyalty program’s 1% cash back.

Still, Target Red members would save $4.99 in shipping on every Target Restock order. Restock is one of the retailer’s online shopping platforms that lets customers fill up a box of everyday household necessities and ship it at a flat rate.

Members of the new program would also save about $50 per year on a membership for Shipt, which Target acquired in December 2017 for $550 million. Shipt delivers groceries from several different stores (including Target). The service usually runs $99 per year, and Target Red members get 50% off the subscription fee. 

The test run of the new program comes at a time when many retailers are trying to compete with Amazon’s online grocery service and Prime’s two-day shipping policy, and as brick-and-mortar stores are trying to increase the number of customers walking through the door.

This isn’t Target’s first crack at a loyalty program. In 2016, the retail chain tested its Cartwheel Perks program, which converted customers’ purchases into points that could be redeemed on other specific items. The program was seen as too complicated, and Target scrapped it.

As an added perk, members of the loyalty program will also be able to vote for which local organizations receive charitable donations from Target.

H/T: Tech Crunch

Featured image by George Frey/Getty Images.

The best beginner points and miles card out there.
Chase Sapphire Preferred Credit Card

With great travel benefits, 2x points on travel & dining and a 50,000 point sign up bonus, the Chase Sapphire Preferred is a great card for those looking to get into the points and miles game. Here are the top 5 reasons it should be in your wallet, or read our definitive review for more details.

Apply Now
More Things to Know
  • Earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $625 toward travel when you redeem through Chase Ultimate Rewards®
  • Chase Sapphire Preferred® named a 'Best Travel Credit Card' by MONEY® Magazine, 2016-2017
  • 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
  • No foreign transaction fees
  • 1:1 point transfer to leading airline and hotel loyalty programs
  • Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 50,000 points are worth $625 toward travel
  • No blackout dates or travel restrictions - as long as there's a seat on the flight, you can book it through Chase Ultimate Rewards
Intro APR on Purchases
N/A
Regular APR
17.74% - 24.74% Variable
Annual Fee
$0 Intro for the First Year, then $95
Balance Transfer Fee
Either $5 or 5% of the amount of each transfer, whichever is greater.
Recommended Credit
Excellent Credit

Editorial Disclaimer: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.