JPMorgan Chase is planning to sell or completely exit its prepaid card business, which includes all corporate, US public sector, electronic benefit transfer (EBT) programmes, and health savings accounts (HSA).
In December 2013, JPMorgan warned around 465,000 cardholders that their personal data might have been accessed by computer hackers in July 2013.
Moreover, the company sent incorrect replacement cards to around 4,000 people receiving payments from the state of Connecticut.
According to a person familiar with the matter, the company was facing problems in operating and regulating the cards, which were offered along with cash and treasury services to companies and governments.
Though the firm explores a sale, it will continue to provide support for current clients and for cardholder activities. It also urged cardholders to continue to use their cards unless notified.
According to Chase, its customers including cardholders of Chase debit, credit, Chase liquid and commercial cards, will not be affected by the plan.