Originally Posted by
JEFFJAGUAR
We knew that as the original USAA chip and pin cards expired, they would be replaced by chip and signature priority cards (it is still not clear if USAA "downgraded" cards will work with offline pin as a backup; we think it will but nobody has reported on this yet). But does this mean USAA is moving up the timeline and now replacing its chip and pin cards on the pretext they have been compromised which is probably a lie?
I wouldn't think they're proactively sending new cards. Usually what happens is when there's suspected fraud the issuer will take no chances and send out a new card. I've even had this before while traveling and had to get the issuer to stop the cancellation process:
CSR: We're calling to inform you of suspected fraud on your card. Did you make transactions in the amount of... <runs through a list of transactions>
Me: What's the one for ABC Corp for $1.00? I don't recognize that
CSR: As a precautionary measure we've gone ahead and cancelled your card and...
Me: Wait wait wait!
Sometimes pending transactions will show up and the pending transaction name won't match the name of the establishment when the charge finally posts. So you may not recognize a charge that you've legitimately made because. It might have been a case like that or a case where he made a purchase at a merchant during a period in which the merchant had some fraudulent activity. However, I don't think issuers would use the excuse of fraud just to switch everyone over to chip-and-signature cards.