EXPIRATION DATES ON CREDIT CARDS: WHY?
SECURITY
One of the main reasons for expiration dates on credit cards is to protect against fraud and unauthorized use. Once a card expires, it is no longer valid, and any attempts to use it will be denied.
UPDATE SECURITY FEATURES
Credit card companies will often issue new cards with updated security features, such as a new card number or a chip. This is an additional layer of security that helps to protect against fraud.
KEEP TRACK OF CARDHOLDER INFORMATION
Credit card companies also use expiration dates to ensure that they have the most up-to-date information on cardholders. This can include a new billing address, contact information, and other details that may have changed since the last time the card was issued.
COMPLIANCE WITH REGULATIONS
Credit card companies are required by law to follow certain regulations, such as the Payment Card Industry Data Security Standards (PCI-DSS) and the Fair Credit Billing Act (FCBA). These regulations require that credit card companies take certain steps to protect cardholder information and prevent fraud.
PREVENTING ABUSE
Expiration dates also prevent abuse of credit cards, in case a cardholder does not use a card for a long period of time or has a tendency to lose or forget about them, having an expiration date will prevent the card from being used without the cardholder’s knowledge.
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