JPMorgan Chase plans to sell or exit over time its business of issuing prepaid cards for corporate payrolls and government tax refunds and benefits, the company said on Thursday.
The cards, which had been offered with cash and treasury services to companies and governments, had become a headache of risks in operations and regulations, according to a person familiar with the matter who was not authorized to speak publicly.
Last month JPMorgan warned some 465,000 holders of the cards that their personal data may have been accessed by computer hackers who attacked its network in July.
The company mailed incorrect replacement cards to some 4,000 people receiving payments from the state of Connecticut. The state treasurer blasted the bank for its "obvious lack of attention to detail."
(Read more: Google debuts prepaid debit card)