Keep in mind that it costs somewhere between $3-4 USD to reissue a "plastic" (card). Although the big players (VISA, MC, AMEX) have verbiage in place to force banks and service providers to disclose and replace stolen cards there are instances where there is resistance. For example, "Card Systems" lost what was the number? 40 million? card records. Multiply 40 million X $4.00 and see what that comes out too... loss of profit, directly from the bottom line. There is also loss of industry reputation to be considered, some organizations will resist going public if they can.

To VISA's credit they forced the issue with Card Systems and did the right thing for thier card holders by notifying them and reissuing plastics, they also forced Card Systems out of business.

There are alot of factors in the banking industry to consider, far more than what the "light" article above covers. Do a bit of research into it and you'll see what I mean.

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