Why Credit Or Debit Cards Have Expiry Date?

Why Credit Or Debit Cards Have Expiry Date, Credit cards have expiry date, Why credit or debit cards have expiry date, credit cards, debit cards

Plastic money is very common these days whether it is debit cards or credit cards. Every time you open a savings account in a bank, you will be offered a debit card which can be used to withdraw money from an ATM. The same bank also tries to lure you by providing numerous schemes on credit cards. A credit card is a perfect option for buying things if you have significant funds in your savings account. 

You must have observed an expiry date on the credit or debit card, and on expiry, you are issued a new card. Have you ever thought of the reason credit or debit cards have an expiry date. In this article, I will tell you a few of the reasons the government and RBI have made it mandatory for banks and financial institutions to issue plastic money (credit or debit card) with an expiry date. 

Reasons

Fraud prevention

Online frauds have increased to such an extent that there have been thousands of cases of money stealing every day. This happens because people have to provide details of their cards when they make online shopping. The hackers are able to decode the card number and CVV number. 

The expiry date on the card acts as an additional layer of security. Every time you make a purchase, you have to enter the expiry date this can only be possible if you are physically carrying the card with you.

Card security updates

The banks or the financial institutions issuing credit cards have constantly worked on improving security updates. You must have observed that almost a decade back, there was no EMV chip or Wi-Fi functionality available on the cards. 

The EMV chip is introduced to enhance the security of the card so that it cannot be replicated. The hackers were able to copy the card details on the replica, and thousands of card owners lost their money. Similarly, the Wi-Fi functionality is introduced so that the user does need not to enter the PIN at the time of making payment. Manual input of PIN allowed the hackers to hack from the fingerprints on the numbers of the POS machine. 

Branding and marketing

When the card is about to expire, the credit or debit card companies provide you multiple additional benefits to upgrade the card benefits. Some of the benefits you can get are reward points that can be redeemed for an Amazon gift card, discounts on hotel stays or business class flight tickets, no charges on purchases from foreign countries, free movie tickets, etc.

However, the debit cards are also available with numerous benefits. The primary objective is to encourage users to use plastic cards instead of cash.

How to manage your credit card bill

Maintaining two or more credit cards can be a worry because the due date for payment can be different and the users can forget to make payments. The problem can be resolved with the help of the CRED application that you can easily install on your smartphone. The application will send you regular reminders for making payments. If you want to download it, click the link. 

To conclude, maintaining a plastic card is highly beneficial and recommended to users. The only thing to be taken care of is the security of your cards and never share information like OTP, CVV, or card number with any other person.

Frequently asked questions

1. Do the banks charge additional amount for issuing the new card?

No, there is no additional charge for issuing new card.

2. If the bank do not send the card after expiry date, should I use the same card?

No, you should not use the expired card. In the majority of cases, the card will not work or the bank will send you a new card. You can also inform the bank about the card expiry.

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