Why Do Debit And Credit Cards Have Expiration Dates?

Credit cards and debit cards make in-person and online purchases more convenient. However, there are a few details to keep in mind when using any type of card for spending.

For example, you need to keep track of your credit card’s expiration date or the expiration date listed on your debit card. This date indicates the validity period of each card and the date by which it can be used. After this date passes, you’ll need to get a replacement card for your account.

Why do cards have expiration dates?

Credit and debit cards have expiration dates for several reasons, including the fact that plastic and metal cards aren’t necessarily made to last forever. Expiration dates can also help keep your information and data secure, and they can ensure you are eligible for improved credit card security features that are added to new cards over time.

Here’s a rundown of the most important reasons credit card expiration dates matter and why you should welcome getting a new card every few years.

• Fraud prevention
  

  Credit card expiration dates (and expiration dates for debit cards) provide an extra layer of fraud protection during transactions where your card isn’t present. This is mainly because it’s another piece of information that criminals would need to match to use your card for a purchase. If someone who isn’t authorized to use your card attempts to make an online purchase without the expiration date, the purchase most likely won’t be possible.

  That said, it’s important to remember that most credit cards have $0 fraud liability policies. This means you won’t be on the hook for fraudulent purchases made on your account, regardless of whether the criminal has your account number, expiration date and other card details.

• Card security updates
  

  When your card expires, you’ll typically get a new credit or debit card in the mail. This new card will have a new expiration date that is likely to be extended by a few more years.

  This new card may also have updated features that your card issuer has been developing to keep your data secure. For example, you may notice that your updated card has new technology, such as an EMV chip or contactless capability.

• Credit card wear and tear
  

  Credit and debit cards may seem designed to last forever, but many start to show wear and tear over time. If you’ve ever been in the checkout line trying to use a card with a worn-out magnetic strip or EMV chip, you know this from experience.

  When your card is replaced, however, you’re upgraded to a new one that’s made to last for at least a few more years.

• Account renewal
  

  When your card expires, you have the chance to decide whether you want to renew it. While you can continue with your account as it is, this is a good time to review your credit card agreement to ensure that the terms and conditions meet your needs. During this process, you’ll want to consider your card’s rewards structure, added fees you pay regularly and your interest rate, among other details.

  Your issuer may take the opportunity to market new credit card services to you. If you decide your card is no longer meeting your needs, see if your credit card issuer offers a card that may better suit your spending.

  For example, you can use this opportunity to upgrade from a student credit card to a cash back credit card for good credit or to switch from a traditional rewards credit card to a premium travel credit card.

  You can request a product change during your renewal period rather than closing the account altogether and forgoing any negative effect on your credit score. Just be aware that upgrading a card or making a product change may result in missing out on a new credit card sign-up bonus if the card has one.

  If you want to earn a welcome bonus, you can just apply for the new card you want separately and close the old account. You can also keep it open to increase the average length of your credit history, which can help your credit rating.

What to do when your debit card expires

If you’re wondering what to do when your debit card expires, you may not have to do anything. Most of the time, your card issuer will handle the process for you by automatically sending a new card to you by mail.

And if you ask, “If my debit card expires this month, can I still use it?” The answer is almost certainly “No.” If you use your old card after the expiration date, the transaction will likely be declined. That said, you usually have until the last calendar day of the expiration month before your service will be deactivated entirely.

If you don’t have your new card already, you’ll want to contact your issuer to see if a replacement has been sent. And if not, find out why and what will happen with your service moving forward. Whether you have a working card or not, you’re still responsible for the terms of your credit card account. This means you will still be responsible for making monthly payments on any balances you carry, even if your card service is interrupted.

What to do when your credit card expires

You should receive a notification by mail or email about a new card being on its way as the expiration date approaches. If you aren’t interested in continuing your credit card service, this would be a good opportunity to notify your card issuer that you don’t wish to renew.

If you choose to renew, the next step is to receive your new card. If you’re planning to move during that time, contact your issuer to update your mailing address. You should also notify your issuer if you’ll be away from home when your card is scheduled to arrive. Ask if you can receive your card before your departure or if they can hold off on sending it until you return.

Once your card arrives, you must activate it before you can use it. If you use your card for any automatic payments, like a utility bill or subscription service, you’ll need to contact those service providers to update your card information.

What to do if your card doesn’t arrive

You’ll receive a written notification when your new card is on the way. If it doesn’t arrive within two weeks of receiving that notification, contact your issuer. Your card may simply be lost in the mail or possibly stolen. As a security measure, your issuer will send you another replacement card.

If your old card is set to expire before the new one arrives, check with your issuer to see what they can offer to prevent your card service from being interrupted. In the event that you have to wait it out, be sure to make arrangements with any service providers that will be expecting an automatic payment from your credit card.

If you have bills set up for automatic payments on your old card and are worried you won’t get your new one on time, consider transferring the automatic payments to another credit card or debit card you have for the time being. You can also pay your bills with other payment methods while you wait for your new card to arrive, including cash or paper checks.

The bottom line

Credit card expiration dates may seem like a hassle, but they serve a purpose and can help you in ways you may not realize. Some benefits of credit and debit card expiration include fraud protection and card longevity. Expiration dates also allow you to decide if a card is still meeting your needs.

Remember that expiration dates apply to the physical card, not the account. So, when your credit or debit card is set to expire, it doesn’t mean your account is ending. If you currently carry a balance on a credit card, your credit card debt remains. Usually, you’ll get your new card in the mail, activate it and continue as usual.