By David Henry
NEW YORK, Dec 21 (Reuters) - At least 2 million shoppers who used bank debit cards at Target Corp stores during its recent data breach are facing lower limits on how much cash they can take out of teller machines and spend at stores.
JPMorgan Chase & Co 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 and Citigroup Inc, 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."
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.
Apple CEO <a href="http://www.huffingtonpost.com/2012/09/28/tim-cook-apology-apple-maps_n_1922378.html">Tim Cook issued an apology</a> Friday for the company's new Maps app. Cook directed users to other map apps in the Apple store or websites like Google or Nokia until Apple's version is fixed.
Bank Of America Debit Card Fee
Bank of America announced last year that it was planning to charge customers a $5 fee to use their debit cards. After an intense customer backlash, the <a href="http://www.huffingtonpost.com/2011/11/01/bank-of-america-debit-card-fee_n_1069425.html">company dropped the plan</a>.
In 1985 <a href="http://www.msnbc.msn.com/id/7209828/ns/us_news/t/it-seemed-good-idea-time/#.UGXCa_mfHll">Coca-Cola decided to mess</a> with its iconic product, according to NBCNews.com. The result: Epic failure. With customers comparing the change to trampling the American flag, the company pulled the product after just a few months.
Pepsi <a href="http://investorplace.com/2011/02/loud-sun-chips-pepsi-branding-disaster-failure/">launched a clear version</a> of its cola drink in 1993, but the product didn't last long. The company pulled it from the shelves in 1994, according to InvestorPlace.com.
Lawn darts, everyone's favorite 1980s backyard game, turned out to be pretty dangerous. The Consumer Product Safety Commission <a href="http://www.popularmechanics.com/technology/gadgets/toys/4347051#slide-1">recalled the toys in December 1988</a> after many were injured and three people died sending the steel darts through the air, according to Popular Mechanics.
In 1957, Ford launched the Edsel, a car the company billed as hot and revolutionary, according to the <em>Washington Post</em>. Problem: <a href="http://www.washingtonpost.com/wp-dyn/content/article/2007/09/03/AR2007090301419.html">It turned out to be sort of "blah."</a> By the time the company pulled the car in 1959, it had lost about $250 million.
When it debuted in January, 2007, Microsoft's newest operating system was <a href="http://www.spike.com/articles/n2yhee/the-top-10-epic-fails-in-product-launch-history?page=2">slammed by consumers</a>. As a result, businesses and personal computer users were slow to adopt it, according to Spike.
The Arch Deluxe
McDonald's launched a luxury burger geared towards the adult set in 1996 with a <a href="http://www.nytimes.com/1998/04/19/magazine/steal-this-burger.html?pagewanted=all&src=pm">$100 million advertising campaign</a>, according to <em>The New York Times</em>. But the mature hamburger was ultimately a flop.
In 1993, Apple <a href="http://www.dailyfinance.com/photos/top-25-biggest-product-flops-of-all-time/#photo-11">launched the PDA device, a precursor to the palm pilot</a>, according to DailyFinance, but it turned out to be a bust, thanks to its high price and bulkiness. The company pulled the Newton in 1998.
Sony poured <a href="http://articles.latimes.com/1989-09-28/business/fi-409_1_sony-corp">20 years of research into its Betamax</a> videocassette recorder, but was ultimately beat out by the competition, according to the <em>Los Angeles Times</em>. Matsushita developed the VHS system, which became more popular among companies making the devices -- and companies making films -- rendering the Betamax obsolete.
In September of last year, Neflix announced that it would be separating its online streaming service from its DVD service and calling <a href="http://www.huffingtonpost.com/2011/12/30/tech-fails-2011_n_1173313.html">the DVD branch "Qwickster."</a> The proposal turned out to be such an epic fail that the company scrapped the experiment last November before it even launched.
Clairol's "Touch Of Yogurt" Shampoo
When Clairol came out with its yogurt-based shampoo in 1979, they thought it would be a success, thanks to <a href="http://www.huffingtonpost.com/2012/01/06/worst-product-launches-ever_n_1182219.html">widespread interest in the test marketing</a> phase. But it turned out to be a flop; customers apparently don't want to put food in their hair.
BlackBerry launched its Playbook without apps for email, contacts or any of the other things people use tablets for. The result: The <a href="http://www.huffingtonpost.com/2011/12/30/tech-fails-2011_n_1173313.html#s577006&title=BlackBerry_PlayBook">company slashed prices</a> on the device as the holidays approached.
Toshiba's HD DVD experiment ended up <a href="http://www.zdnet.com/blog/storage/hd-dvd-post-mortem-why-did-toshiba-fail/294">being trounced by Sony's</a> Blu-Ray player as studios and customers opted for the latter.
The car deemed by many to be one of the worst vehicles ever exported to the U.S. was met with widespread criticism when it <a href="http://www.cbsnews.com/2100-500395_162-4616249.html">landed on American shores in 1986</a>. Available for just $3,990, the car did terribly in crash tests, according to CBS News.
Nike Black And Tan Sneakers
Nike launched a sneaker (not pictured) in the lead up to St. Patrick's Day that offended some Irish people. The shoe called "Black and Tan"<a href="http://www.huffingtonpost.com/2012/03/14/nike-black-and-tan_n_1344197.html"> shares its name</a> with a British paramilitary unit that attacked Irish civilians in the 1920s.