Your credit card is expired or has been blocked. There is nothing to worry about as the card is now invalid and no charges can be put on them. WRONG.
The bank will replace your expired or blocked card with a new one. Although the credit card number will be the same, the expiry date AND CVC numbers will be different. As much as you believe that the old card cannot be used, your subscriptions will continue to to be charged. Logically, charges to an expired cards should be declined.
Well, it can and does happen. The charges would be transferred from the old card to the new card in case of subscriptions.
How does can an invalid credit card get charged?
Those subscriptions that you forgot to cancel or did not bother cancelling as your card was expired, are the culprits. As it is a subscription, the charge will basically roll over onto your new card. In these cases, the banks will allow the transactions to take place and charge the new credit card with the amount.
You are probably asking yourself “how can that be if I did not specifically authorize the new card with the new details to be used”?
It is quite a dilemma so we went out and looked for some answers. We spoke to a major bank here in the UAE who confirmed that in the case of merchant’s request for a subscription, the card will be charged
[Related Link: Have you been a victim of online fraud?]
What if your credit card statements have transactions from your old card?
First step is to contact your bank’s call center and enter a dispute on those charges. The bank will ask you to fill in a form providing them details of the transactions and whether the card was present or not. The bank will surely ask you as a first step whether it is possible to resolve it with the merchant and get a refund. Failing this, you will have to try and resolve it directly with the bank.
[Related Link: How to dispute fraudulent credit card charges?]
To get to the bottom of this dilemma, we have reached out to a few of our banker friends to understand once and for all what are the rules that applies in these cases.