No More Expiring Credit Cards
May 23, 2006
While you and I think that an expiration date on a credit card means something, the people behind the scenes know that is no longer the case. If you have utility payments that are on automatic every month they can continue to bill the card past the expiration date without fear now.
Most believes that this is not a security risk plus it helps keep your services running uninterrupted.
Many consumers genuinely want to use “recurring billing” — an automatic credit-card charge to pay for a utility or some other service. The ability of an individual to pay for a service automatically can be desirable, ensuring continuity of service.
For businesses that accept credit cards for ongoing services, the new, looser regulations can make a big difference in the percentage of billings that are actually collected.
In fact, it appears that giant Internet service providers and other sources of online content took the initiative, cajoling credit-card issuers into the new procedures. Since more transactions succeed when expiration dates aren’t required, the issuers make more money, too.
(No Ratings Yet)
Loading ...Comments
Got something to say?
