Although popular opinion states that credit cards have expiration dates to encourage users to use them more, the truth is that expiration dates are put on credit cards to avoid fraud. This article will provide you with some valuable information on Why credit cards have a expire date and avoid any problems that may come as a result of their expiration date.
Fraudulent charges are common, with 1 in every 5 cases being disputed by the cardholder. This is due to thieves who commit crimes by opening an account or taking over an existing one, then buying goods and services without having any intention of paying for them. The account owner’s worst nightmare happens when they have given up using the card because they assumed it had expired.
What You Need To Know About Credit Card Expiration Dates
In order to prevent this from happening, many financial institutions have been using a new security feature that has been present in credit cards since 2005.
The security feature is a polycarbonate stripe that contains an expiration date on the back of the card. It is placed below the magnetic stripe and can be easily seen when swiped through a magnetic reader machine. The length of time the card remains valid is dependent on the type of card and its issuer. For instance, American Express and Diners Club cards expire in one year, while Discover and Visa cards last for up to five years.
Moreover, most banks and credit card companies do not allow the user to input the month and year on the card’s expiration date. That is because banks do not want to deal with customers who claim that they did not know their card was expiring.
How Do I Find The Expiration Date on an Old Credit Card?
Prior to the 2005 implementation of this security feature, financial institutions would mail customers a notice informing them that their card was about to expire. But customers would usually disregard these notices as junk mail, which meant that thieves were able to use those cards for months after they were supposed to expire. The expiration dates were also found on the back of the cards, but thieves managed to scratch off those dates as well as all other identifying information such as names and account numbers before using them.
In 2001, Visa implemented a security feature that requires a PIN to be entered before an approved transaction. This prevented criminals from just taking a card and using it right away. The expiration date at the back of the card became redundant as it could be scratched off by the thief anyway.
As a result, Visa decided to change the expiration date to make it more secure and easier to use. They also made the details on the magnetic stripe clearer so that customers could easily see them.
How Do You Know When Your Credit Card Expires?
By placing the expiration date on the card, financial institutions have eliminated one of the biggest problems for card users. By putting an expiration date on the front of the card, customers would be more likely to pay attention to it and make sure they do not use their cards too many times without intending to make any transactions.
Financial institutions have been using this security feature for more than a decade, but recent reports show that only a few people are aware of it. In January of 2012, The Consumerist reported that 3 out of 4 credit card users did not know the expiration date on their credit cards.
Debit cards usually come with expiration dates since they are generated when an account is opened. This is because the account owner would not stand for having his or her money taken away suddenly. When it comes to bank-issued debit cards, they usually expire in seven years, while store-issued cards expire in four years. The expiration date is very important because it prevents money from being used after the card has expired.
Do Credit Cards Renew Automatically?
When the card’s expiration date passes, monetary transfers are automatically sent to unused accounts to create another account. This avoids theft since if money is transferred to an existing account, it is much easier for the thief to transfer that money out of that account rather than creating a new one.
By knowing when your credit card expires, you can avoid incurring extra fees by constantly reusing the same card over and over again. It also prevents theft since thieves are more likely to use their credit cards once they are out of cash since withdrawing at an ATM costs them much more money.
To prevent fraud, some financial institutions use something called dynamic account identification. This is an identification method that does not require the account holder to enter their PIN. The ID will automatically use the last four digits of the card’s number to create a new account ID on the bank’s computer system. If this ID already exists on the bank’s system, it is marked as “used,” which means that no more new accounts can be created for this card.
Some Tips for Credit Card Expiration are:
-When you have a Credit card, do not let it expire. If you don’t use it at all, then just put it in a drawer and take it out once in a while to keep the account active.
-Consider freezing your credit. While most people are unaware of this option, it can be very beneficial to you, especially if you don’t use your credit card often and want to keep the account active.
-If you do use it once in a while or all the time, then make sure that you pay the entire balance on time as well as pay more than the minimum amount due each month. The higher the Credit Limit that has been assigned for your card, the longer it will survive if used appropriately.
-Review your bill regularly. Checking your credit card statement each month will allow you to be aware of changes that have been placed on your card and by whom. This could be considered the most important thing to do because this will help you stay up-to-date with your account, thus preventing any type of fraud or misconduct against you.
When Your Credit Card Expires, Do You Have To Reapply?
In addition, credit card companies lose money when they have to issue new cards because these new cards will not be issued until the old ones expire. If you have a credit card with an expiration date, you should check it every few months to see if it has been extended. You can check this by looking at the front or back of your credit card.
In the event that your credit card is going to expire soon, make sure you pay off all of your bills on time so that you do not get charged extra fees for paying late. In addition, make sure you get a new card from your financial institution before your old one expires. This will allow you to benefit from new benefits and perks while keeping things secure at the same time.