JPMorgan Boosts Debit-Card Limits After Target Breach
JPMorgan Chase & Co., the biggest U.S. bank, increased spending and withdrawal limits it imposed on 2 million customers who used debit cards at Target Corp. during the retailer's data breach.
Cash withdrawals of as much as $250 per day and purchases of $1,000 are allowed for most affected account holders, the New York-based bank said on its website. Previous limits of $100 in cash and $300 in purchases were set after Target said last week that 40 million customers may have had data stolen.
JPMorgan, the third-biggest U.S. debit-card issuer by purchases, is alone among the largest U.S. banks in announcing usage limits. Precautions to prevent fraud-related losses may have frustrated bank customers facing spending caps during the holiday shopping and travel season, said Bert Ely, an independent banking consultant in Alexandria, Virginia.
"This is a huge inconvenience for its customers, and JPMorgan may feel a competitive pressure to back off," Ely said. "It comes at a terrible time, Christmas shopping season, and I'm sure they've had push-back from customers."