Visa Warns Issuers On Holomag

March 16, 2006, 1:00 a.m. EST 1 Min Read

SAN FRANCISCO - (03/16/06) -- Visa USA is recommending its membersimmediately stop issuing cards with the holographic magnetic stripeimage due to problems when the card is swiped at the point of sale.The card can create a static discharge that causes a paymentterminal to reboot. The static problem has been reported in areasof low humidity, such as the Southwest, Iowa and Minnesota. Visabegan promoting the holographic mag-stripe in January as part ofits redesign of its logo. A dove image appears as a hologram acrossthe mag-stripe on the back of the card. As many as 20 million ofVisa's 500 million cards in the U.S. could be impacted. Visa isconsidering compensating issuers that reissue the cards with theholographic mag-stripe. Visa began hearing of the problem severalmonths ago in Europe.

For reprint and licensing requests for this article, click here.

MORE FROM AMERICAN BANKER

Politics

Brokered deposit bills fly through HFSC

A bill on reciprocal deposits passed the committee unanimously, while another measure on custodial deposits passed by a wide, bipartisan margin.

By Claire Williams

1h ago
Payments

PayPal's P2P upgrade has a crypto kicker

The payment company has made a series of moves to bolster its stablecoin and other coins to build a market for digital assets. Its Links feature adds to the strategy.

By John Adams

2h ago
Google

What banks need to know about Google's AI agent protocol

Google has launched its Agent Payments Protocol, an open protocol that establishes a payment-agnostic framework for users, merchants and payments in agentic AI. Payment companies such as Adyen, American Express, Mastercard and PayPal helped develop the protocol.

By Joey Pizzolato

3h ago
Fraud

SEC charges leader of $770 million ATM-centered Ponzi scheme

Prosecutors say Daryl Heller lured 2,700 investors with promises of safe ATM profits but misappropriated $185 million.

By Carter Pape

3h ago
Data sharing

JPMorganChase reaches deal to charge Plaid for customer data

The companies have signed a new data-sharing agreement that includes an undisclosed pricing structure. Plaid said it will not pass the new costs on to its clients.

By Penny Crosman

4h ago
CRA

Senate Democrats urge regulators to rethink CRA reversal

A group of Democratic Senators led by Elizabeth Warren, D-Mass., urged regulators to keep the 2023 Community Reinvestment Act overhaul, saying the rule was carefully crafted with bipartisan input.

By Ebrima Santos Sanneh

4h ago