CHARLOTTE, N.C. – In an unexpected way, small local businesses are just starting to feel the impact of the breach at Target stores that happened during the holidays.
Debbie Proffit never misses a jazzercise class.
“It’s the most joyful exercise experience I've ever had in my life. It's just a wonderful workout in all, respects”, she says.
Allegra Hinson, the owner of a local Charlotte Jazzercise studio was shocked to find Debbie didn't pay for her January membership dues.
“I got a notice from Allegra that my credit card was not working anymore and I really didn’t know why.”
Debbie’s credit card had been declined, along with dozens of other members.
Allegra didn't immediately realize what was going on.
“I put a phone call in to our corporate offices and they are experiencing the same thing on an even larger scale.
As it turns out, the Target breach was to blame.
Most Jazzercise members have a monthly draft set up where their membership fee is automatically taken each month.
But, many didn't realize when they got new cards from their banks that the automatic draft would no longer work.
“It can be impactful. January and February are the best time of year for an exercise business and we rely on that income. So, not having it means you’re going to have to cut somewhere.”
Proffitt sympathizes. “I’m a CPA and I work with small business people and I get that they need their money and they need to get paid.”
Allegra has spent the last few weeks working out the mess.
“We are hoping through conversation with our customers we can try to recoup some of that lost income.”