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Finance: JPMorgan Chase has quietly canceled a popular customer service (JPM)

US Bank Branches Issuance

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JPMorgan Chase has officially canceled its popular in-branch instant debit card issuance program after months of phasing it out, according to The Wall Street Journal.

The service, which was introduced in 2012, allowed customers who lost their debit card to print out a new one at nearly half of Chase’s 5,300 branches, rather than having to wait up to five days for it to be mailed.

The increase in identity fraud to open up a new debit card and the need to reduce costs were cited as reasons for doing away with the service. However, not having this service could hurt the bank, especially when considering how popular these types of programs are with consumers.

Instant issuance is a feature that bank customers are clearly interested in, which could hurt banks that don't have the option.

  • Instant issuance has become a factor for customers when choosing a financial institution. According to a Fiserv survey, 36% of debit card users state that instant issuance would influence their choice of financial institution. And this is even more pronounced for 18-24 year-olds, with 47% of this segment stating that it would influence their choice.
  • Several other banks will continue to offer the option, as they see the rewards outweighing the risks. TD Bank and PNC Financial Services will continue to offer instant debit cards because they believe that the prevalence of identity fraud is much less likely from instant issuance than the possibility of mail fraud being committed during the process of shipping a customers debit card to their address — by 2021, the number of financial institutions who use the technology to instantly issue cards are forecast to grow by about 65%, according to Aite Group cited by The Wall Street Journal.

BI Intelligence, Business Insider's premium research service, has compiled a detailed credit card rewards explainer that:

  • Identifies the costs associated with offering rewards for issuers and how they have increased over time.
  • Details why credit card issuers continue offering high-valued rewards.
  • Analyzes how the industry has evolved since 2011
  • Explores how credit card issuers will advance in order to continue reaping the benefits of offering rewards without assuming increased costs.

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