Shares of American Bank Note Holographic Inc. plunged this week after Visa U.S.A. said it had stopped distributing credit cards featuring a holographic magnetic stripe the Robbinsville, N.J., vendor developed.
Some credit cards that have American Bank Note's HoloMag stripe discharged some static electricity when used, and "affected" some card terminals, the vendor said in a filing with the Securities and Exchange Commission. The stripe incorporates Visa's dove logo for added security.
On Wednesday, American Bank Note's stock fell 61%, to $2.19 a share, its steepest one-day drop since 1999. The shares rallied 9.59% Thursday, and were trading at $2.40 at midday.
According to the filing, Visa, of San Francisco, notified American Bank Note on Tuesday about the decision to revert to previous card designs.
