Chase limits debit card use for customers at risk in Target breach
JPMorgan Chase, the largest bank in the United States, told customers Saturday that they would be limited to $100 in cash withdrawals and $300 in total purchases per day if they used Chase debit cards at Target during a recent security breach.
The limit applies to about 2 million customer accounts, Kristin Lemkau, a Chase spokeswoman, told NBC News. That represents less than 10 percent of Chase customers, she said. The limit does not apply to Chase credit cards.
Target announced earlier this week that as many as 40 million debit and credit cards were compromised during the breach, which the store said began just before Thanksgiving and ended Dec. 15.
The security breach exposed customer names, card numbers, expiration dates and the short security codes known as CVVs. The industry blog Krebs on Security, which first reported the breach, has reported that card accounts are already being sold on the black market.
Target, eager to repair the public-relations damage and restore customer trust, has apologized and offered a 10 percent discount at its stores this week.
Chase did not immediately give a time limit for the restrictions. The normal daily limit for transactions on Chase debit cards is $500, and the normal daily limit for cash withdrawals is generally $200 to $500, Lemkau said.
The bank said on its website that its employees would be ready to help customers who need more cash than $100. Customers can visit Chase branches, many of which will issue temporary cards, Lemkau said.
"We realize this could not have happened at a more inconvenient time with the holiday season upon us," the bank said. "It's unfortunate that criminals are active during a time of giving and generosity."
Chase is issuing new debit cards in the coming weeks to all customers whose cards were put at risk, Lemkau said.