What you need to know about the expiration of the credit card

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When does your credit card expire? Many people don't think about the date on their credit card until it's too late. For example, when the card is no longer accepted to pay for a purchase at a shopping center or right in the middle of your vacation at Disneyland. Interestingly, when reissued, the card number usually does not change, only the expiration date changes. If so, why are these deadlines needed? - you ask. Below are 10 facts about the expiration of a credit card that are worth knowing, writes the resource GoBankingRates.

1. The validity period does not always expire on the last day of the month indicated on the card.

If your credit card is valid until 10 / 2017, then it will work until the last day of October, but not with all banks. Do not wait for the last day of the month, but rather check with your bank when your card will no longer be accepted for payment. With debit cards, on the contrary, their validity often expires on the first day of the month, again, depending on the bank. It is recommended to check this with your bank and prepare for the exchange of the card - order a new one and transfer all automatic payments to it. You do not want Netflix to stop working for you.

2. Credit cards are valid for several years to allow banks to change their appearance.

Beautiful pictures, maybe not the main advantage of credit cards, but pleasant. Companies often use the expiration date to introduce new card designs. Wells Fargo banks offer customers personalized options of cards on which you can use a photo of a family or a favorite activity. This approach contributes to the creation of greater owner attachment to a particular bank card, and hence a more loyal client for a bank or a credit company.

3. The expiration allows you to introduce new technologies.

As theft of personal data and card frauds spread, companies are increasingly using card protection technologies. The most modern weapon against these practices is cards with a chip. They gradually replace cards with magnetic stripes, and this happens just at the moment of replacing an invalid card with a new one. Instead of holding a magnetic stripe card, now you insert the chip into the data reader. The chip generates a unique code for each transaction, which makes it more difficult for fraudsters to steal information and hack accounts. If you do not already have such a card, ask your issuer.

4. Validity is necessary for the timely replacement of worn cards.

Over time, credit cards will wear out and may become unusable. The expiration of the card is used by banks and other financial institutions to issue new cards to customers, as well as a reminder that they can use this credit.

5. Card can be debited after expiration

If you have automatic recurring payments connected to the card - for example, Spotify or Amazon Prime - you should not expect that they will no longer be charged after the expiry of the card. Many companies use technology that allows service providers to pass through the card expiration barrier and continue to write off money from it. If the old card is no longer valid, but you have the same numbers on the new one, automatic payments can be made as before.

To stop paying for the service, it is better to cancel the automatic payment and delete your card details from the system. If this does not work, contact the company providing the services or your bank and ask them to block the payment of bills from the company.

6. The expiration date is an additional protection against fraud.

The expiration date of the card additionally protects it from fraudsters. It is one of the ways in which companies check whether a card is in the hands of its holder. This applies to both telephone and online transactions. Scammers often use stolen credit card numbers to issue new ones. However, without a valid expiration date, the card may be rejected.

7. The card expiration date gives you the opportunity to re-check your subscriptions.

People often forget what subscriptions they have allowed on their cards. For example, you could sign up for a free trial period for a service, and then forget to cancel the subscription and pay for it all this time without using it. Replacing a credit card is a good opportunity to check your regular subscriptions and see if you need them. Thus, periodic updating of a credit card gives you a chance to financially audit your own bank accounts.

8. After the expiry of the card, the bank is able to offer you a better product.

Banks are working to increase money, including through loans. Trying to predict which card is better suited to the individual needs of a person, the bank strives to turn each user into a loyal customer. The card expiration date is a bell for a bank that looks at your account and analyzes which services can be improved. When the credit card expires, you can get the best offer, the best conditions or the best card from the bank.

9. Card expiration will allow you to switch to the optimal use of banking services.

Your card is made of polyvinyl chloride (PVC), which does not decompose under the action of bacteria. This means that the card will lie at the dump for many decades after you throw it away, and will release toxins until it decomposes. In addition, one card emits as much carbon dioxide as the Hummer for the 45 distance of meters. Therefore, if you are not indifferent to the environment, consider using an alternative to credit cards. For example, PayPal allows you to bind credit cards to your account and use it through any mobile device. Capital One card holders can also use their cards through the app, thus doing without plastic.

10. You can sell old invalid credit cards.

Earthworks specializes in the processing of PVC material, including credit cards. It produces PVC in the form of large sheets of plastic that can be used for lamination and printing. To do this, the company buys PVC waste by conducting a preliminary assessment of their value. If you have a stack of invalid credit cards, they may not be as useless as you think.

See also:

How to check your credit rating

6 financial crimes you may accidentally commit

10 ways to protect yourself from scams

How to get a credit card and build a good credit history

The best credit card for people with bad credit history

How to find out if you have debts from collectors

How does a monthly credit card payment affect your credit history?

How to make money with a credit card: 9 important rules

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