Chase Axes Instant Debit Card Replacement
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What is the main topic discussed in this episode?
This is Your Money Matters from The Wall Street Journal.
Welcome to Your Money Matters. I'm Charlie Turner in New York.
Why did JPMorgan Chase stop instant debit card replacements at branches?
JPMorgan Chase has canceled a program that allowed customers to replace lost debit cards at many of its 5,300 branches. The move is aimed at an uptick in fraud. So if you're a Chase customer and you lose your debit card or have it stolen, you'll have to wait for a new one to be mailed to you. Joining us is Wall Street Journal cybersecurity reporter Kate Fazzini. So, Kate, JPMorgan had the card-making machines at about half its branches, and they wound down the service starting a few months back. This essentially was more of a physical security issue as opposed to a cybersecurity issue?
That's right. I usually do cybersecurity reporting. But in this case, we're looking at the physical part of security that is obviously still a big issue at a lot of these institutions. Physical security being everything from bank robberies to the kind of fraud we're talking about here where somebody... walks in with a fake ID and walks out with a debit card with your name on it. They wound this service down for a couple of different reasons other than the fraud that they had experienced. It was a business decision.
Was fraud the only reason Chase wound down branch card-printing services?
They're moving on to some mobile technologies. But it shows, obviously, that physical security is still an issue.
Now, is Morgan the only major bank to stop issuing replacement cards at branches? Don't other major banks still do it? They sort of swear by this.
Yeah, there's a few banks who we spoke with, TD Bank among them, that just in March finished rolling out these machines to all of their locations in the United States. So we also spoke with PNC Bank, who said this was a very popular program with consumers. So we see some pullback on one side and some ramping up on the other. It's just an interesting way to see how different banks are working with their consumers on what those consumers prefer.
So this is just one reason that Morgan stopped, that they want to, I guess, concentrate on other things like mobile banking and they don't want to do this anymore?
There's a lot of other technologies coming out there. Cost-cutting measures also might be a part of it.
Do other major banks still offer instant debit card printing at branches?
The interesting thing is that as you see a lot of these technologies come out, one of the more famous ones is the mobile check deposit. One of the things that banks try to do is what they call reduce friction between themselves and the consumer. But as they do that, things always crop up security-wise. So while people can deposit checks on their mobile devices, they also might be – making mistakes and depositing those checks twice or committing fraud. So there's a very delicate balance that the banks are trying to make here.
I'm speaking with Kate Fazzini of The Wall Street Journal, and you're listening to Your Money Matters. Thanks for listening, everyone.
How are banks balancing convenience (mobile features) with security risks?
Kate, why don't you talk about the increased use of debit cards? They're really starting to ramp up, I guess, among bank customers.
In the past 15 years, we've seen a really big rise in the popularity of debit cards, and that is just seeming to continue. The Federal Reserve has some statistics on this, and The use of debit cards has far outshined the use of checks and credit cards in the past several years. So, obviously, this is a product that is really popular with consumers. It'll take time to see if the mobile products, having the card on your phone...
But it seems to me that this is still a problem because, as I understand it, with debit cards, you have a much harder time remedying fraud than you do with credit cards.
Why is debit-card fraud more damaging than credit-card fraud for consumers?
So I think the issue of possible cybersecurity fraud is much more serious with debit cards.
Absolutely. I think we can talk a little bit about actually the chip technology that has been put into the cards to help with fraud. I think a lot of consumers might not realize that that chip technology is it's mainly to help. keep that information from being stored at the retailer itself. So when a store is hacked, your number isn't going to show up in the cache of data that the hacker receives.
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Chapters
7 chapters
1
What is the main topic discussed in this episode?
0:02–0:14
2
Why did JPMorgan Chase stop instant debit card replacements at branches?
0:14–1:15
3
Was fraud the only reason Chase wound down branch card-printing services?
1:15–2:14
4
Do other major banks still offer instant debit card printing at branches?
2:14–2:57
5
How are banks balancing convenience (mobile features) with security risks?
2:57–3:47
6
Why is debit-card fraud more damaging than credit-card fraud for consumers?
3:47–4:21
7
How does chip technology reduce retail breaches but not prevent stolen-card losses?
4:21–5:10
Speakers
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