At target, you insert your card into a device that fully captures it. It's quite possible they could photograph both sides/OCR to find your CVV2.
(AFAIK they don't, but there certainly isn't "no way" they could have it.)
(AFAIK they don't, but there certainly isn't "no way" they could have it.)
I worked at several stores (up through 2008), and still shop there.
I have never seen a credit card machine at the stores I have been in contacted that fully captures a credit/debit card.