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 JPMorgan Chase & Co <JPM.N> said on Saturday it is notifying
customers who used Chase brand debit cards at Target from Nov.
27 through Dec. 15 that they are now limited to $100 a day of
cash withdrawals and $300 a day of purchases with their cards.
The new limit effects roughly 2 million accounts, or 10 percent of
Chase debit cards, according to a spokeswoman for Chase, the
consumer banking business of JPMorgan, the biggest U.S. bank by
assets.
Chase said it acted as a precaution to prevent criminals from taking
money from customer accounts. Chase and other banks say they will
cover unauthorized transactions that customers report.
"Banks are putting various precautions in place," Target spokeswoman
Molly Snyder said by email, declining to be specific about what the
banks are doing.
Representatives for other major banks, including Bank of America
Corp <BAC.N> and Citigroup Inc <C.N>, told Reuters on Saturday that
their institutions take steps to protect accounts, but none
described specific actions so broadly limiting to cardholders as
those of Chase.
Target's Snyder said that for the debit card it issues and calls
Redcard, the company has activated a "deeper fraud monitoring
protocol." She did not describe the new steps.
Chase said in its notice to customers that it realized its move
"could not have happened at a more inconvenient time with the
holiday season upon us."
At Chase, the usual debit card daily limits are $200 to $500 for
cash withdrawals and $500 for purchases, according to a bank
spokeswoman.
"It seems like the banks are the 'Grinch who stole Christmas,'" said
Jamie Court, president of Consumer Watchdog, a consumer advocacy
group based in Los Angeles. "It is Target's fault, but children
across America are going to bear the price ... The banks are
protecting themselves."
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Chase spelled out the new limits in an email to customers with the
subject line: "Unfortunately, your debit card is at risk by the
breach at Target stores."
Target said on Thursday that computer hackers had stolen data from
as many as 40 million credit and debit cards of shoppers who visited
its stores during the first three weeks of the holiday season.
Chase said in the letter that it plans to reissue affected debit
cards over the coming weeks and in the meantime said employees at
its 5,600 branches would help those who need more cash. Many
branches will stay open late if needed, the letter said.
Debit cards, unlike credit cards, typically require customers to
enter personal identification numbers when they make purchases at
store check-out counters. Initial reports of Target's security
breach said data may have been taken through devices at its
counters.
Debit cards are used to spend money that has been deposited in
checking and other demand accounts at banks.
(Reporting by David Henry in New York;
additional reporting by Jim Finkle and Dhanya Skariachan; editing by Gunna Dickson and Bill Trott)
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