How does Target’s red card program work?

Target's REDcard program works like this: Use your Target Debit Card, Target Credit Card, or Target Visa Credit Card at U.S. Target stores and Target.com and receive 5% off your purchases.

Target's REDcard Debit Card works like a check by drawing from your existing checking account and is issued by Target. The Target Credit Card and Target Visa Credit Card are issued by a bank.

The discount does not apply to prescriptions, Target Clinic services , Target Optical eye exams, Target gift cards and prepaid cards, previous purchases, Target credit account payments, Target Debit Card cash back and cash advances on the Target Visa Credit Card, Target Commercial Interiors purchases, or gift wrap and shipping and handling charges on Target.com purchases.

Another perk of the REDCard program is free shipping for online orders, with no minimum purchase requirement. Target makes a donation to education equal to 1% of all REDcard purchases.

Tip! Kiplinger offers 10 suggestions on how to save money at Target.

Of interest, Target's updated app, now lets shoppers make a shopping list using a type-ahead function that knows brand names. The app also lets them know if the product they want is available in that store. Find out more from Venture Beat.