Need To Update Your Credit Card? For Your Convenience, No Further Action Needed

With all of the hacking going on, credit cards are being opened and closed more than most front doors. Many folks find their credit card accounts hacked or card numbers stolen more than once and the need to cancel an account and open a new one is becoming quite common. With credit card replacements, questions loom about what the cardholder needs to do in order to continue transactions conveniently and without interruption. The main question being how many retailers and service providers need to be alerted with the new card account number. Well, chances are, it’s already done for you.

Credit card account updater services are provided to merchants upon request from card providers like Visa, Mastercard, Discover Card, AmEx, and others. Although some cards need initial activation by the owner before being used, other card providers approve some purchases without activation as a “customer convenience.” There is no hard rule or law about purchasing with a new card before activating it, and it’s up to the card issuer’s discretion to enforce. Automatically updating a new credit card number means customers can easily continue buying, especially for those who have recurring payments on their cards. A purchase with a replacement card, even if your card was hacked, lost, or stolen–is now seamless with account update services.

Although some cardholders find it surprising that their new card number is automatically given to merchants, many consider it a huge convenience. The only way to opt-out of credit card automatic updates is to contact the issuing institution; otherwise it’s a done deal. As for the CVV code, it’s for added verification when making online payments. It adds a layer of fraud protection with online payments in the event that someone hacked or acquired the card number without having the physical card. With account updater services, merchants receive the new card number, expiration date and CVV, just as consumers are required to provide that information from their original card. Whether cardholders appreciate automatic updates or not, it’s the way things are quickly done in the Digital Age.

However, for your security, consider contacting your card issuer and opt out of this service. While it is a convenient service, it can also allow someone, perhaps a “new” hacker, to make purchases right away without your knowledge. Keep track of online accounts that store your credit card so it’s easier to manually change them. However, it’s really better not to store your payment information in the accounts in the first place.

Stickley on Security
Published October 31, 2018