When MrConsumer received a replacement Visa debit card from his bank because the old one was about to expire, there was a small note inside:
*MOUSE PRINT:
“Visa Account Updater: Your Salem Five debit card now includes Visa Account Updater. This feature automatically updates your debit card information with participating merchants you have recurring payment relationships with when your card is renewed or reissued at expiration.”
In other words, if you have certain bills like utilities, cable, or mail order pharmacy on “autopay” meaning they automatically charge your credit card or debit card every month for the balance due, Visa will tell those merchants your new expiration date or card number whenever the card is replaced.
This is good in many respects particularly for people who don’t want to be bothered having to contact each merchant with the new information, and to avoid bills not being paid on time because the card expired.
But it could also pose a problem for cardholders who deliberately give a company a soon-to-expire credit card number because they don’t want the plan they may have signed up for to self-renew. For example, you may not want your gym to keep billing you after your contract is up, or you took advantage of a free trial offer somewhere, and you don’t want them to keep charging your card because you don’t trust them.
Recently a Boston-area consumer thought the only way he could ensure that the bankrupt Boston Sports Club would stop charging her monthly fees for one of their closed locations was to change her credit card number… but he was wrong. The company transferred his membership to a new location and because of this credit “feature” they were able to start charging his new card the monthly fee again.
Some scam artists have even discovered how to use these card updater services to continue to defraud victims.
Visa is not alone in telling merchants about your new card. MasterCard has a similar program called “Automatic Billing Updater” as does American Express (“CardRefresher“).
My bank allows cardholders to opt-out of the automatic renewal notification service. (See how their Visa updater program works.)
If you don’t want your card issuer to automatically notify the companies to whom you have given your card number about updates to your card, ask if you can opt-out of that service.
