As the numbers of people and retailers hit by the data breach at Target, Neiman Marcus, and likely other retailers who have not yet come forward are increasing, credit card issuers are tightening the reins to help mitigate the risk of fraud. JP Morgan Chase recently issued a statement to their customers informing them of lower daily limits for charges on certain cards. If a card reaches the daily limit, the decline code will come back as a Do Not Honor decline code. Recycling strategies for these codes during this time could change. Since the limit will reset the next day, that account will likely be approved the following morning.
Tracking decline recycling and recovery success is going to be increasingly important in coming months. Flexibility to change the rules will also be key for recurring billing CNP merchants. As the investigation into the Target data breach continues, and the affected population increases, it is very likely other banks will also implement temporary credit limits or other fraud filters that could impact your recurring business.
Stay tuned for updates on best practices as the landscape shifts.