What Does the Credit Card Expiration Date Mean on Your Credit Card?
When you take a closer look at your credit card, you will likely notice that your credit card expires within a few years or less. You must have a valid credit card to make a purchase. So it can be an inconvenience to keep up with the credit card expiration date. While the card may expire, your actual credit card account never expires. In fact, the account will usually remain open until you cancel the account. With this in mind, you may be wondering why you even have a credit card expiration date at all. A closer look will provide you with more detailed information about the significance of the credit card expiration date and how you can manage your expiration dates more efficiently.
8 Reasons Why There are Expiration Dates on Credit Cards
Protection Against Fraud
One of the primary reasons you see a credit card expiration date printed on all of your cards is for fraud protection. Fraud is a serious issue that can cost account holders a substantial amount of money through unauthorized charges each year. You need to provide the expiration date. This is required every time you make an online purchase. This reduces the chance of credit fraud. In the event your account number is stolen, such as through online theft, thieves are not able to use the credit card unless they provide a valid credit card expiry date. When the expiration date changes periodically, you are less likely to fall victim to fraud because the information is updated. Updating credit card information is simply another security measure that credit card companies can use to confirm that you have the credit card in your possession. While an expiration date can be a hassle, it is nonetheless a protective feature that works to your benefit.
Ensuring the Card Remains Useable and Functional
As you use your card regularly, you will notice that the strip on the back of it as well as the numbers on the front of the card wear out. When this happens, swiping the card to make a purchase at a cash register may not be possible. The store clerk may need to take the time to enter the credit card details into the terminal manually. However, when the credit card numbers have been worn off as well, you no longer have a valid credit card. When the credit card companies send you a bright, new piece of plastic in the mail, they are ensuring that you always have a functional card that you can pull out as needed.
Reminder to Use the Credit Card
While some people use their credit cards regularly, others only need access to a valid credit card once in a blue moon. For example, you could have a credit card that you only use for a rainy day or an emergency situation. By sending you a new card with an updated credit card expiration date, the credit card company is subtly reminding you to make charges and to use your account. Of course, you can always place your new card in the back of your wallet for a rainy day. You do not have to make purchases using a credit card every day.
Updating the Credit Card’s Branding
Over time, credit card companies alter their branding and marketing. Many of the new credit card designs that may be available for you to choose from incorporating the new branding in some way. When a credit card expires, the card company has a convenient, opportune time to replace the credit card for you with one that showcases the company’s new branding scheme. This way, each time you pull out your card to use it, you will be leaving an updated image on others about the company’s brand.
Better Understanding When Credit Cards Expire
If you take a closer look at your prepaid cards and credit cards, you will likely see a month and year expiration date. Naturally, this begs the question of do credit cards expire at the end of the month? You certainly do not want to be in an unfortunate position of checking out and having your card declined because you do not have a valid credit card. Understanding when your credit card expires is also important because you may have recurring expenses linked to your card. In most cases, a credit card expires at the end of the month. A debit card can expire on the first day of the month. Credit card and debit card expiration dates are not set in stone, however. Therefore, it is wise to be vigilant about your credit card expiration date. Order a new credit card if the financial institution fails to send you one.
Taking Advantage of Customization
Credit card companies are always introducing eye-catching new designs and features on their cards. The purpose is to entice you to pull the credit card out more often and make charges more frequently. The new designs may allow greater customization and personalization, such as by incorporating a hobby, a beautiful landscape design that you find appealing and more. Customized credit cards are more likely to be used. It also gets consumers talking, and it may encourage other consumers to apply for a new account after they see your attractive new credit card.
Keeping Up With Recurring Charges
You may have numerous accounts linked to your credit card. For example, you may be using your valid credit card to pay for streaming TV programming, a computer program subscription, monthly payments on advanced phone apps and more. You may think that when your credit card expires, these subscriptions will cease. In fact, you may even be counting on it. It is, after all, a headache to contact different vendors to cancel subscriptions. You may be looking for the fast and easy way out.
While some subscriptions may cease on your credit card expiration date, this is not always the case. Some of your important subscriptions, such as your utilities expense linked to your card. They may expire while other unwanted subscriptions may not. When your credit card expiration date approaches, it is wise to review all recurring charges on your account and to update the accounts that you want to continue. Cancel accounts you no longer need or want.
Informing Cardholders About Better Offers
When your credit card expiration date approaches, you may discover that your credit card company contacts you about special offers. As your credit card expires, your creditor is reminded to review your account. They may determine which specials and promotions you may qualify for. You should carefully consider these offers to see if they are in your best interest.
It can seem like a bothersome nuisance to deal with a credit card expiration date. Some people overlook when their credit card expires. It is a credit card mistake to ignore expired credit cards. Then do not have a valid credit card in their possession when they need one. Others may have accounts or subscriptions canceled as a result of this. It is very smart to take a closer look at your credit card expiry dates today and to note when they expire. If your card will be expiring soon, consider looking at some of the new styles available. Place an order for an updated valid credit card today.