Sharing Daily Discoveries About Personal Finance And Business Topics

Expired Credit Cards Can Get Charged Still

This was a little interesting I found out today as I was subscribed annually to a service where I was on the fence as to whether or not I should renew since I wasn’t using it as much as I thought I would. I got a lot of nag reminder e-mails from the company and their e-mail specifically stated that the credit card number that was on file has expired. Therefore, if I don’t put in a new card number my account would be closed right at the end of my current subscription.

Because of that I thought I wouldn’t have to go through the hassle of the cancellation process where if I wanted to continue I would update the card. If I didn’t, then I would just leave it be and they would automatically cancel it themselves like a traditional magazine subscription. I ended up deciding that I would simply let it run its course. To my surprise, while doing my daily finance check I noticed that the credit card charges went through and it successfully auto renewed. That was a little odd as I would think an expired credit card would essentially mean it is dead just as if you got a new replacement card due to say identity theft. Apparently not.

Upon further research apparently credit card companies do have services in place for merchants to obtain your recent credit card details to continue the billing as you can see here:

mastercardautobill

From what I read, the logic for the card user is that this provides more convenience where you can have a set it and forget mindset. If you forget to give the merchant your updated card number then this allows your service to continue uninterrupted.

 

cardholderbenefit

 

This wasn’t too big of a deal as I guess I will simply continue to use the service. But that was a lesson where just because your card is expired doesn’t mean it can’t be billed. At the same time, not all companies will automatically just close the account for you as obviously if they can do stuff like this then of course they would choose the option of wanting to re-bill your card.




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