Have you ever wondered why do credit cards have expiration dates? Why while making online payments you are required to enter the expiry date as well? The answer to this is that credit card companies can anticipate when a credit card might get physically worn out and may need a replacement. This is the reason why they include the expiry date on the credit card. Also, the expiry date embossed on the credit card works as a verification factor while making payments through an online platform.
There are various reasons behind the fact that credit cards are valid only for a certain period of time. But the important thing that everybody should know is that it is just the credit card that expires on that particular date and not the account which is linked to that credit card. It has nothing to do with the account the credit card is associated with. The card will be valid till the particular month of a year which is printed on the credit card. In the meanwhile, you will get a new credit card delivered to your address which you can use post the expiry of your existing credit card.
What is Credit Card Expiry Date?
The expiry date is a date embossed or printed on your card beyond which your card will be deactivated and you will not be able to use that credit card any further. The expiry date is printed on the face of the card towards the bottom side. The card is generally valid till the last day of the month which is written on the card. So, if the expiry date on your credit card is “06/22”, this means that your card is valid till June 30th, 2022. This card will not be valid after the said date. Hence, even if you try to make a purchase using this card on July 1st, 2022, the transaction would probably be declined.
Reasons why credit card has expiry date
Following are some of the most significant reasons why your credit card comes with an expiry date:
Credit cards are continuously evolving and so is the technology behind them. These cards have been progressing from magnetic stripes to EMV chips and now they have come up with contactless payment features. Technological updation is required even for safety purposes. Sometimes, due to the launch of some mandatory technology upgrade, the bank may be required to upgrade your card and send it to your address even before the expiry of your credit card.
Wear and Tear
A credit card is just a piece of plastic that can not be used forever, especially in today’s world where they are used so frequently. These cards are so many times used in the POS machine and inserted and taken out of the wallet many times. All such things cause wear and tear of credit cards. The magnetic chip or the EMV stripe may get damaged because of all such things and then your card might not function properly. These card issuing companies are in the business of generating money and it would be of no use if their card is not working properly. Hence, it becomes their responsibility to provide fresh cards to their customers from time to time so that they do not have to face any inconvenience.
Protection against fraud
As hackers these days have become very smart these days, they can crack all the security features applied to the card, hence it is important to update them from time to time. While making payment through an online platform, the card expiry date acts as an additional feature that is required to confirm the genuineness of the transaction. Replacing your existing card with a new credit card will help you with more secure features by updating the technology of the card and reducing the risk of fraud.
Check here: 10 Safety Tips Pertaining To Your Credit Card
What to do when your credit card expires?
Credit cards come with an expiry date because of several reasons as explained. Therefore it will be of no use to keep the expired credit card with you as it will not help you in making any payments after the last day of the expiration month.
You generally have to do nothing when your credit card expires because banks already have the data of all the credit cardholders which contains all the details about the credit cards as well. Hence, you will automatically be provided with a new credit card almost a month before the expiry date of your existing credit card. You just need to take care of the following points –
- If in case you have not received a new credit card before the expiry date of the existing card, you can simply walk-in to the nearest bank branch of your respective card issuer company and inform them about the same. Secondly, you can call the customer care number present on the backside of the card and explain to them about the situation you are in, that your credit card is going to expire and you haven’t yet received any new credit card. They will surely help you in this situation.
- If your communication address has been changed, you need to get it updated with the bank as well. Carry all the required documents with you that will be needed for address change like address proof, your identity card, etc. You should do it well before your card expires because otherwise the new card will be sent to your communication address that is registered with the bank.
- All your bill payment applications must be updated with the new credit card. All the details of your expired credit card should be removed from these. This is the reason that when on the due date of your bill payments, the amount would not be deducted from the credit card as it has already expired. All such will then remain overdue and EMI’s would bounce and incur bouncing charges.
Another important point to note is that although the card number of your expired card and the card number of your new credit card will remain the same, all other details such as expiry date and CVV will be changed. This is a type of security feature that comes with the new card. All other terms and conditions, applicable fees, and charges would remain the same on the new card as on the old card. If there occurs any change, you would be pre-informed by the bank.
Also, you need to properly dispose of the expired credit card. You can simply cut the card into small pieces and then throw away the pieces differently. You should not throw all the pieces in the same place.
Everything comes with an expiry date and so does a credit card. Every credit card has its expiry date printed on the card. There are various reasons behind this like technological updation, fraud prevention, etc. An important point to note is that it is just the credit card that expires and not the account related to it. It is done just to ensure that updated technology reaches every cardholder and he does not get caught in any fraud due to any technological lack.