The well-entrenched Chase Bank decided to discontinue a useful, yet possibly outdated, service at all of its branches in the United States this month. The in-branch service, debit/credit card replacement, allowed Chase customers to enter any branch for a quick replacement card in the event of loss or damage.
Chase had only been offering this service for a few years before it decided to cut it off. Now, those who are in need of a new Chase credit card can no longer visit the bank for a quick solution. Instead, they are required to call in the loss or submit a form online.
According to Bankrate, one of the hardline reasons for cutting the service is to defend against fraudulent card replacement schemes where people use a stolen identity to obtain a credit card in someone else’s name.
While calling in or clicking a few links online sounds a bit easier, there is a catch. Customers are required to wait at least five business days when they need a new debit or credit card. The only saving grace during this hiatus without a card is the ability to make mobile payments. This service is known by several different names such as Chase Pay, Apply Pay, or generically, digital wallet service.
In fact, the availability of payments on a mobile device and virtual wallet capability could explain the discontinuation of the in-branch card replacement across the board for many other banks. Mobile payments have been on the rise over the last couple years; in 2017, the transaction value of mobile payments is projected to rise by 128 percent according to eMarketer.
Other voices in the industry back this up. An article from MasterCard’s newsroom stressed the rise of mobile payment users, quoting an expected “50 billion users by 2020.” Additionally, the author touched on the fact that mobile payment technology “has altered our traditional ways of doing commerce.”
One of those traditions may very well be the need to actually visit a tangible bank to get anything done. The loss of In-branch debit or credit card replacement surely falls in line with that trend, and on that note, Chase Bank seems to be following suit with the changing industry.
Author: Andrew Rombach
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