I wouldn't just threaten to cancel your card, I would. Get a Visa. Visa has a pretty much a no questions asked policy for fraudulent charges. My mom a couple of weeks got a phone call from Visa saying we didn't approve an $1600 charge to a resturant in Ontario (she lives in Calgary). They canceled her card and gave her a new number with no hassle.
That's pretty crappy the way they are treating you. Especially when you told them about the two charges you didn't know about and they wouldn't do anything about it till 3 happened. That's poor.
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