Target Reveals Big Error on Gift Card Activations

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Holiday Shopping
AP
By ANNE D'INNOCENZIO

NEW YORK -- Target (TGT) is getting hit with another lump of coal this holiday season.

The nation's second-largest discount retailer said Tuesday that an unidentified number of gift cards sold over the holidays were not properly activated. The Minneapolis chain says the number of cards affected was less than 0.1 percent of the total sold and that it will honor the affected cards.

Holders of Target gift cards can check the balance by following instructions on the back of the card. Customers can bring faulty cards to any Target service desk or call (800) 544-2943 for help.

"We are aware that some Target gift cards were not fully activated and apologize for the inconvenience," company spokeswoman Molly Snyder said in a statement emailed to The Associated Press.

The problem comes less than two weeks after Target announced it was hit with a massive data security breach that affected about 40 million debit and credit card holders who shopped at its stores between Nov. 27 and Dec. 15.

"It's another black eye that makes you question the internal operating procedures of Target," said Brian Sozzi, CEO and chief equities strategist at Belus Capital Advisors. "Target needs to be doing everything perfectly. It can't afford to lose any more confidence among its guests."

On Friday, Target backtracked and said that debit-card PINs were among the financial information stolen from millions of customers who shopped at the retailer in late November and early December. However, it said the stolen personal identification numbers, which customers type into keypads to make secure transactions, were encrypted and that this strongly reduces risk to customers.

In addition to the encrypted PINs, customer names, credit and debit card numbers, card expiration dates and the embedded code on the magnetic strip on back of the cards were stolen.

Target has said it is still in the early stages of investigating the breach. It has been working with the Secret Service and the Department of Justice.

Target's stock price rose 95 cents to $63.42 in afternoon trading Tuesday. It is nearly even with its price before the company disclosed the data breach.

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26 Comments

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paddleman1928

don't hire incompetent morons next time.

January 01 2014 at 7:57 PM Report abuse rate up rate down Reply
glucash22

But, but I was told that ONLY the ACA has technical problems by the GOP/TP?

January 01 2014 at 7:26 PM Report abuse rate up rate down Reply
H

You can read three of the Class Action suits at: http://targetstoressucks.blogspot.com/ and find out about the other Target problems at: http://targetstoressucks.blogspot.com/

January 01 2014 at 5:44 PM Report abuse rate up rate down Reply
rvnus

Target deserves all the bad luck that has happened to them for discriminating against our VETERANS as they will not hold their jobs for them when called to active/reserve duty. I REFUSE t shop Target for this reason.

January 01 2014 at 12:05 PM Report abuse +2 rate up rate down Reply
1 reply to rvnus's comment
WildMtHoney888

You call it bad luck I call it Karma. Seems everything target touches has errors. That happen to cost the consumer.

January 01 2014 at 1:01 PM Report abuse rate up rate down Reply
ezspin42

Well, I gave Walmart 2 chances since Christmas to have my size undershorts in stock-no such luck. Target had them first try

January 01 2014 at 10:27 AM Report abuse +1 rate up rate down Reply
al

Target in my town is usually like a morgue. How do they keep their doors open?

December 31 2013 at 8:18 PM Report abuse rate up rate down Reply
tweetys326

I think the competition had something to do with this. Right at Xmas time. I really don't know why target is being bashed for this, it could of happened to other businesses but it happened to Target.

December 31 2013 at 8:12 PM Report abuse -1 rate up rate down Reply
1 reply to tweetys326's comment
setanta54s_back

someone's doing a great job at forcing them outta business.

January 01 2014 at 3:53 PM Report abuse +1 rate up rate down Reply
Kathleen

And their pharmacies suck too!

December 31 2013 at 7:56 PM Report abuse rate up rate down Reply
phasevariance

People would be smart NOT to shop at any company that sends billing information overseas and hires cheap Indian coders.

December 31 2013 at 5:32 PM Report abuse +4 rate up rate down Reply
1 reply to phasevariance's comment
elendil3136

Question: Which companies don't?

When was the last time that you talked to a customer service rep for ANY company that didn't have a Hindu accent?

January 01 2014 at 1:31 AM Report abuse rate up rate down Reply
1 reply to elendil3136's comment
setanta54s_back

thank u !!!!!!!!!

January 01 2014 at 3:54 PM Report abuse rate up rate down
Kj`s

I want another 10% off deal after this screw up.

December 31 2013 at 5:24 PM Report abuse +1 rate up rate down Reply