WASHINGTON—Visa said it will increase the reimbursement levels for its card-issuing banks when they reissue cards following a data breach, according to the American Bankers Association.
The ABA reported on its website that it has been “aggressive” in working with Visa to secure the higher reimbursements.
“Visa will adopt a tiered reimbursement system to replace its current reimbursement level of $2.50 per reissued card. Issuers with less than $500 million in annual Visa purchase volume, which includes most community banks that issue Visa cards, will qualify to receive $6.00 per card,” the ABA said at ABA.com. “Issuers with $500 million to $10 billion in volume will receive $3.85 per card and the biggest issuers, with more than $10 billion in volume, will receive $2.65 per card. Issuers will also be reimbursed an additional $1.00 for every chip card they reissue. The changes take effect with breaches for which Compromised Account Management System e-mail alerts are sent on or after July 1.”