Canadian Tire Financial Services
Encyclopedia
Canadian Tire
Canadian Tire Corporation, Limited is one of Canada's 60 largest publicly traded companies. The firm operates an inter-related network of businesses engaged in retailing hardgoods, apparel and petroleum as well as financial and automotive services, employing more than 58,000 people across Canada...
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History
- CTFS began in 1961 as Midland Shoppers Credit Limited, a small company offering third-party credit processing for local retailers
- In 1968, Midland was servicing Canadian Tire stores and eventually was purchased by Canadian Tire and became a wholly owned subsidiary of Canadian Tire Corporation, Limited. At this time it was renamed Canadian Tire Acceptance Limited and since has been renamed Canadian Tire Financial Services Limited (CTFS).
- In 1995, CTFS became the first non-deposit taking financial institution worldwide to launch a MasterCard.
- In 2003, Canadian Tire Bank was established, a Schedule 1 bank under the Bank Act (Canada). Canadian Tire Bank provides high interest savings accounts, tax free savings accounts, and GICs. In addition, all of CTFS’ credit card portfolio was transferred to Canadian Tire Bank.
- In 2008, CTFS was named one of “Canada’s Top 100 Employers” by Mediacorp Canada Inc. as announced in Maclean’s Magazine.
- As of 2011, CTFS and Canadian Tire Bank employ more than 1,600 people, with offices in Welland, St. Catharines, and Oakville, Ontario.
MasterCard
In 1995, the Canadian Tire Options MasterCard was issued nationally with a reward program with Canadian Tire ‘Money’ and a discount on gas based on the previous month’s purchases. In 2008, the card was embedded with PayPass Technology and is now issued by Canadian Tire Bank.In 2006, the Cash Advantage MasterCard was placed into pilot. Its reward program allows cardholders to earn up to 1.5% cash back based on the amount of eligible annual purchases made on their card. In 2007, the Vacation Advantage MasterCard was created with cardholders rewarded with points that could be redeemed for any vacation related purchase.
In 2009, the no fee Curve MasterCard was first issued nationwide, so named as its shape is a distinct curved. Its reward program allows cardholders to earn up to 3.5% cash back based on the amount of eligible annual purchases made on their card. Cardholders can earn double cash back at Canadian Tire and Marks Work Wearhouse stores. In late 2010 both the Vacation Advantage and Curve MasterCards have been removed from Canadian Tire's credit portfolio.
Insurance
CTFS offers a range of insurance products underwritten by third party insurance companies, including credit protection insurance, term life insuranceTerm life insurance
Term life insurance or term assurance is life insurance which provides coverage at a fixed rate of payments for a limited period of time, the relevant term. After that period expires coverage at the previous rate of premiums is no longer guaranteed and the client must either forgo coverage or...
and accident insurance, and travel insurance.
Retail banking
In October 2006, Canadian Tire Bank began to offer more traditional banking services over the phone or online.- High interest savings account
- Tax Free Savings Account
- Guaranteed Investment CertificateGuaranteed Investment CertificateA Guaranteed Investment Certificate or GIC is a Canadian investment that offers a guaranteed rate of return over a fixed period of time, most commonly issued by trust companies or banks. Due to its low risk profile, the return is generally less than other investments such as stocks, bonds, or...
s - Mortgages (In October 2009, Canadian Tire Bank sold its lending portfolio to National Bank of CanadaNational Bank of CanadaNational Bank of Canada is the 6th largest bank and 8th largest financial institution in Canada. The bank's headquarters are in Montreal, Quebec....
and no longer offers mortgage products.)
All deposit products are eligible for insurance from the Canadian Deposit Insurance Corporation.