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JPMorgan Chase is warning 465,000 holders of prepaid cash cards that their personal information may have been accessed by hackers who attacked the bank's network earlier this year, Reuters reports.
December 5 -
JPMorgan Chase is strictly limiting the debit card use of shoppers who used Chase debit cards at Target during the retailer's recent data breach, which took place November 27 to December 15.
December 22
JPMorgan Chase (JPM) is seeking a buyer for its corporate payroll, tax refund and health-savings prepaid card business.
The bank's decision to explore a sale of those product lines does not affect any consumer payment cards, including credit, debit or the Liquid prepaid card, according to a Jan. 9 press release.
When contacted, JPMorgan Chase declined to comment further on the potential sale or any effect
JPMorgan Chase's announcement is "purely a business decision," says Madeline K. Aufseeser, senior analyst with Boston-based Aite Group. "Other companies are in a better position to more aggressively manage this than what JPMorgan can do. Operationally, prepaid payroll is really difficult to manage."
The consumer cards are not affected because they operate under separate management teams and technology, Aufseeser adds.
"It should be an easy business to sell, there are a lot of big players in that market," Aufseeser says, noting that First Data, Bank of America (BAC), ADP and U.S. Bancorp (USB) might be logical suitors. "U.S. Bank has a processing platform in place for payroll prepaid," she adds.
JPMorgan Chase's prepaid card business includes all corporate, U.S. public sector and electronic benefit transfer programs as well as the health savings accounts, the bank says. JPMorgan will no longer solicit or accept any new prepaid card business. Cardholders of any corporate prepaid cards should continue to use those cards until further notice, the bank says.
