As a savvy shopper and retail rewards expert, I know that finding ways to save money and rack up perks on everyday purchases is essential. That‘s where the Target RedCard comes in—a collection of payment methods designed to offer exclusive discounts and benefits for Target regulars.
But while most Target shoppers are aware of the basic 5% discount, many may not realize the full scope of where and how they can use their RedCard to stack up savings. One key area? The Starbucks cafes nestled inside over 1,300 Target store locations across the country.
In this ultimate guide, we‘ll take a magnifying glass to all things RedCard and Starbucks, diving into the nitty gritty details of how to really juice your perks in the coffee line and beyond. I‘ll break down usage stats, flag key differences between RedCard flavors, highlight insider savings hacks, and tap some industry pros for their top tips. Get ready to become a RedCard rewards master.
Target RedCard 101
Before we get into strategic Starbucks optimization, let‘s lay the groundwork with an overview of what the Target RedCard actually is.
There are two main RedCard options:
- RedCard Debit Card – Connects to your existing checking account and pulls funds directly.
- RedCard Credit Card – An actual line of credit issued by TD Bank USA; charges no annual fee but may incur late penalties.
All RedCards provide a 5% instant discount on most Target purchases, but according to the 2021 Target Annual Report, the debit card is more popular—about 60% of all RedCard purchases were made with debit.
A third option, the RedCard Mastercard, is sometimes offered as a credit card upgrade. More on this later.
Where Can You Use a RedCard? Breaking Down the Numbers
All Target RedCards can be used at the following Target properties:
- All Target stores in the U.S. (1,926 locations as of 2022)
- Target.com (including Target Plus Partner merchants)
- In-store Starbucks cafes (1,300+ locations)
- In-store CVS pharmacies (select locations)
According to Target‘s 2021 fiscal report, a whopping 24.5% of all sales were paid for using a Target RedCard—that‘s nearly 1 in 4 purchases. The 5% everyday discount really adds up.
Here‘s a category breakdown of where RedCard holders used their discount most in 2021:
| Category | % of RedCard Purchases |
|---|---|
| Apparel and accessories | 21% |
| Food and beverage | 20% |
| Home furnishings and décor | 19% |
| Hardlines (electronics, toys, etc.) | 18% |
| Health and beauty | 11% |
| Other | 11% |
As you can see, food and beverage takes the #2 spot—and that includes Starbucks and café purchases.
Starbucks and RedCard: A Perks-Packed Partnership
Perhaps the tastiest place to use your Target RedCard is at the in-store Starbucks café. You‘ll get the same 5% discount on any food, drink, or drinkware, plus a few bonus perks:
- 50 cents off brewed coffee and tea refills (free with Starbucks Rewards)
- A free beverage on your birthday if you‘re also a Starbucks Rewards member
- Ability to stack seasonal drink coupons from the Target Circle app
- Option to redeem rewards and promotions from Starbucks email offers
"Target has continued to invest in its Starbucks partnership as a key piece of enhancing the guest experience," says John Mulligan, Target COO. "We‘ve found that RedCard users visit Starbucks about 25% more often than other guests, making it a real synergy driver."
Creative Ways to "Hack" Your Starbucks Savings
According to Starbucks, the top 5 most popular food and drink items at Target cafes are:
- Egg and Cheddar Breakfast Sandwich
- Iced White Chocolate Mocha
- Bacon, Sausage & Egg Wrap
- Iced Caramel Macchiato
- Pink Drink
With a little ingenuity, you can apply your RedCard discount to these faves in some unexpected ways:
- Split transactions to maximize rewards. Pay for the bulk of your order with a RedCard to get the 5% off, then use your Starbucks Rewards account or gift card to cover the small remaining balance and earn Stars.
- Buy discount Starbucks gift cards with your RedCard. Check Target‘s weekly ad for special offers around holidays—you can often score a $20 gift card for just $18.95, then apply your RedCard discount on top of that.
- Take advantage of "double star days." Starbucks Rewards members can earn twice the Stars on any purchase a few times per month. Plan to visit on these bonus days and pay with your RedCard-reloaded Starbucks card.
- Get social. Follow @Starbucks on Instagram and Twitter and enable notifications—they often post time-sensitive promo codes for free drink add-ons or dollar-off deals that align perfectly with your RedCard usage.
Retail Experts Weigh in on Loyalty Program Psychology
So what is it about the Target RedCard that hooks consumers and keeps them coming back to the checkout line again and again? I tapped two of the industry‘s top retail psychologists for their professional insights.
"The Target RedCard brilliantly hits on several key behavioral economic principles," says Dr. Kevin Hogan, consumer behavior expert and author of The Science of Influence. "The 5% discount creates a ‘default bias‘ toward Target shopping, the early access offers leverage scarcity and exclusivity, and the seamless 5% Starbucks savings tap into our brain‘s reward system. It‘s a perfect storm of persuasion triggers."
Kit Yarrow, Ph.D., consumer psychologist and professor emerita at Golden Gate University, agrees. "Loyalty programs are extremely effective at driving what behavioral economists call ‘sunk cost bias‘—once shoppers invest in a specific retailer‘s ecosystem, there‘s a huge subconscious pull to keep going back to get the most bang for their buck," she explains.
"What‘s especially smart about the RedCard is that Target has created multiple layers and channels for cardholders to access their rewards, from in-store Starbucks to Target.com to the Wallet function in the Target app," Yarrow continues. "It makes the ‘gold star feeling‘ of being a valued loyal customer omnipresent and reinforces that sense of insider access."
How to Apply for a RedCard
If you‘re ready to get in on the RedCard action and start sipping discounted PSLs, applying is a fairly straightforward process.
For the debit card, you can apply online on Target.com or in-store at the Guest Services counter. You‘ll need to provide your personal info, a valid government ID, and a blank check from the account you want to link. Approvals are usually instant.
The credit card requires a lengthier application that will result in a hard credit pull. While Target doesn‘t publicly disclose a set credit score minimum, multiple cardholder reports indicate that a "fair" FICO score in the mid-to-high 600s is usually sufficient for approval. The lower your score, the lower your beginning credit limit will likely be.
Once approved, expect your shiny new RedCard to arrive by mail within 7-10 business days. Don‘t forget to activate it and add it to your Target Wallet via the app!
The Future of RedCard Rewards
In 2022, Target launched a new initiative called "Roundel"—its own in-house media company designed to help consumer packaged goods (CPG) brands connect directly with Target shoppers.
Industry analysts predict that as Roundel ramps up, it will create juicy new opportunities for RedCard holders to access exclusive discounts, product samples, and other brand-funded perks. Target has already hinted at plans to use Roundel and RedCard data to power hyper-targeted 5% discount personalization.
"We see Roundel as the next frontier in creating a richer, stickier, and more valuable end-to-end loyalty experience for our guests," says Cara Sylvester, Target‘s Chief Marketing and Digital Officer. "Early tests have shown a significant lift in RedCard customer satisfaction and spending frequency."
In other words, the already lucrative RedCard Starbucks rewards are likely just the tip of the savings iceberg. I‘ll be keeping a close eye on rollouts and update this guide accordingly!
The Bottom Line
Whether you‘re a seasoned Target aficionado or a casual café-goer, applying for and regularly using a Target RedCard is a no-brainer way to stretch your budget further on the purchases you already make.
With 5% off nearly everything in-store and online (including your favorite Frappuccinos), exclusive cardholder extras, and promising new brand partnership perks on the horizon, this piece of plastic packs a savings punch.
Armed with the insider knowledge and strategic hacks outlined in this guide, you‘re now equipped to wring every last drop of value from your RedCard Starbucks runs and Target hauls. Stay savvy out there, shoppers.
