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FaheemAmir
Posts: 1
Registered: ‎06-08-2010
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Companies charging credit card after it has expired!

When a company has a consumers credit card information and the consumer credit card expired 04/10 and the consumer never updates their credit card information with the company, are they allowed to just guess the new date until they get it right and then charge the consumer credit card? This is what I believe happen to me on a reoccurring bill that's paid yearly that I did not care to renew and I know I should have removed my information but I figured they had old credit card information so how could they charge me without me updating my information. The charge just hit my credit card for the month of June and I know for sure I never updated my information with them.
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bostonte
Posts: 258
Registered: ‎10-04-2009
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Re: Companies charging credit card after it has expired!

Recurring charges -- especially things like insurance -- are special. They are often submitted without expiration dates. Other processes exist for larger recurring billing customers to have card numbers and expiration dates updated by the customers bank in case of change. Sometimes its your bank that allows charges to go through on an expired card if they determine it to be a recurring service charge. This is why it's often not sufficient to request a new card number if you are trying to stop a company from continuing to charge you for a recurring service. While a few small companies may guess at the new expiration date, in normal cases they don't need to because its not needed.
Senior Contributor
O6
Posts: 3,626
Registered: ‎10-13-2009
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Re: Companies charging credit card after it has expired!


bostonte wrote:
Recurring charges -- especially things like insurance -- are special. They are often submitted without expiration dates. Other processes exist for larger recurring billing customers to have card numbers and expiration dates updated by the customers bank in case of change. Sometimes its your bank that allows charges to go through on an expired card if they determine it to be a recurring service charge. This is why it's often not sufficient to request a new card number if you are trying to stop a company from continuing to charge you for a recurring service. While a few small companies may guess at the new expiration date, in normal cases they don't need to because its not needed.

That's true.

 

Most credit card agreements also detail how automatic payments can only be stopped by contacting the biller and, until you do so, the charges can post to your account even if the account is closed.

IAALBNYL

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