Can an expired credit card still valid for use

[Wheelslover]

Can someone familiar with credit card transaction advice on this matter?

I signed up for an online course in 2019, it was charge to my credit card on a yearly basis and i've the card details saved in the merchant's portal.  This Sept is the 2nd year billing, i dont intend to renew and forgotten to cancel with the merchant - they had already billed to my card.  I noticed my card had expired in Jun, so why can can the transaction still went through?   I called the bank, they took few days to investigate and responded back saying  this is possible cos the transaction is recurring so they cannot stop it. Is the bank correct ? cos i feel this is a security issue.

 

[Tkseah]

Did u get a new card to replace the expired one?

[Watwheels]

If it's recurring whether it's monthly or yearly it will still go thru. Cos the new card issue to you will have the same 16 digit number except the expiry date has been updated and the 3 digit cvv number has changed.

It's you who need to update whatever course you are taking. It's not a security issue. It's you who need to inform ppl cos ppl cannot read your mind. Facepalm.

[Jman888]

I have the opposite problem, the bank cancel my card due to suspected fraud case and gave me a replacement card. 

I thought the annual recurring deduction for insurance can go through until the agent call me that the deduction not successful.

[BanCoe]

Isn't this the same similar situation when those people whom signed up for those wellness/spa or gym packages for 12 month or 24 month recurring payments and after they went bust or could not honour the services, many tried to cancel the CC but still had liability to pay for the outstanding balance payments    

[Watwheels]

6 minutes ago, BanCoe said:

Isn't this the same similar situation when those people whom signed up for those wellness/spa or gym packages for 12 month or 24 month recurring payments and after they went bust or could not honour the services, many tried to cancel the CC but still had liability to pay for the outstanding balance payments    

May be similar. It's about the T&C ppl signed on the dotted line. Many dont care and forgotten what they had signed a year or two years ago. If TS sign up for the course surely there are T&C. 

[Jellandross]

18 minutes ago, Jman888 said:

I have the opposite problem, the bank cancel my card due to suspected fraud case and gave me a replacement card. 

I thought the annual recurring deduction for insurance can go through until the agent call me that the deduction not successful.

For fraud cases they'll issue you new credit card number. Thats why subsequent transactions will fail using the previous number.

[sake]

17 minutes ago, Jman888 said:

I have the opposite problem, the bank cancel my card due to suspected fraud case and gave me a replacement card. 

I thought the annual recurring deduction for insurance can go through until the agent call me that the deduction not successful.

same here.

bank cancelled my 28 year old credit card (one of the very few gold card left in Singapore) due to a fraudulent online transaction and gave me a new platinum credit card.

i had been resisting the bank's numerous attempts to get me to give up that gold card.

had to redo all my recurring deductions.

[Jamesc]

Tell us the card no. and we check for you whether still can use or not.

Never give us all the details how we can check?

[badlammy]

1 hour ago, Jman888 said:

I have the opposite problem, the bank cancel my card due to suspected fraud case and gave me a replacement card. 

I thought the annual recurring deduction for insurance can go through until the agent call me that the deduction not successful.

Some merchants collect card expiry dates and ensure that they do not charge any transactions once passed expiry date. Such merchants will ask you to update expiry dates or change card detail when payment is due. My town council is an example.

[Stratovarius]

1 hour ago, Watwheels said:

If it's recurring whether it's monthly or yearly it will still go thru. Cos the new card issue to you will have the same 16 digit number except the expiry date has been updated and the 3 digit cvv number has changed.

It's you who need to update whatever course you are taking. It's not a security issue. It's you who need to inform ppl cos ppl cannot read your mind. Facepalm.

Ya. I think is the same for recurring bills such as telco, subscription and insurance. Having a renewed card means all recurring bills will transfer over.

[Stratovarius]

1 hour ago, Jman888 said:

I have the opposite problem, the bank cancel my card due to suspected fraud case and gave me a replacement card. 

I thought the annual recurring deduction for insurance can go through until the agent call me that the deduction not successful.

I had a fraud charge on my youtrip and they issued me a card with different number. I think it will be the same for cc. If the 16 digit numbers are different, recurring bills will not go through.

[Wheelslover]

5 hours ago, Watwheels said:

If it's recurring whether it's monthly or yearly it will still go thru. Cos the new card issue to you will have the same 16 digit number except the expiry date has been updated and the 3 digit cvv number has changed.

It's you who need to update whatever course you are taking. It's not a security issue. It's you who need to inform ppl cos ppl cannot read your mind. Facepalm.

Is not a security issue? Why bother to set an expire date for the card and replace new card every few years?  I would rather have those recurring transactions didn’t go through and update individually then have them go through .

[badlammy]

7 hours ago, Wheelslover said:

Is not a security issue? Why bother to set an expire date for the card and replace new card every few years?  I would rather have those recurring transactions didn’t go through and update individually then have them go through .

Why would it be a security issue? Payment is meant for the service you have authorised previously, under what circumstances can it turn fraudulent?

Merchants incur cost if they have to follow up with customers where most of the time the credit cards are renewed. Customers may also complain of hassle if so.

For you maybe the best way may be to not renew your credit cards by not activating them and let them expire, then apply new ones.

 

[Kopites]

I don't have any recurring transaction on my cc.

Is it a good idea to even attach payment to CC?

 

[badlammy]

6 minutes ago, Kopites said:

I don't have any recurring transaction on my cc.

Is it a good idea to even attach payment 

earn cashback and points lor...although many banks have more exclusions now.

[Wheelslover]

3 hours ago, badlammy said:

Why would it be a security issue? Payment is meant for the service you have authorised previously, under what circumstances can it turn fraudulent?

Merchants incur cost if they have to follow up with customers where most of the time the credit cards are renewed. Customers may also complain of hassle if so.

For you maybe the best way may be to not renew your credit cards by not activating them and let them expire, then apply new ones.

 

You do have a convincing explanation and suggestions, however I still in doubt - when the recurring transactions initiate from the merchant to the bank, what details was exchange between them to complete the transaction? If is the card number and the expire date? Then I see this is security issue. 

[badlammy]

5 minutes ago, Wheelslover said:

You do have a convincing explanation and suggestions, however I still in doubt - when the recurring transactions initiate from the merchant to the bank, what details was exchange between them to complete the transaction? If is the card number and the expire date? Then I see this is security issue. 

To make things bit more complicated, there are payment gateway providers in between merchants and banks, which may or may not be owned by the acquirer banks.

Information exchanged at point of setting up the recurring payment authorisation has its purpose. Card number of course has its algorithm to be validated and expiry date as a one-time validation with card issuer on validity. Don't be surprised if sometimes the name on card does not match and transaction can still go through.

On subsequent recurring payments, the merchant can choose to turn off the expiry date validation with the payment gateway provider for reasons explained earlier. Only MAS can explain why it's not mandatory to validate. We already have 2FA, so these information may be less important in terms of security.

Imagine if your card is 10 months away from expiry, so should the merchant reject your request to setup yearly payment knowing card may expire next year?