It's common.
It happens for a lot of reasons, in a lot of ways. Skimming, data breaches, employee fraud - often at the data processor for a store, etc. It also happens that banks will proactively shut off an account if it shares similarity with other compromised accounts.
Chip solves the problem (sort of) in retail environments, but mag stripe trans still exist in many places and all online transactions are at risk, reputable or otherwise.