Why Credit Cards Expire

If you’ve ever held a credit card, you’ve probably had to throw out an old card for a new one in the mail. The hassle of reactivating a card can be frustrating and leave us wondering why credit cards even expire in the first place. Credit cards typically expire after three years for a number of reasons including wear and tear, increased security, and customer engagement. 

1. Wear and tear

Credit cards are not immune to the tests of time. After a certain length of time, credit cards will become worn out. Magnetic stripes can be scratched and numbers can become blurry or hard to read. Physical damage is natural for a card especially over an extended period of time. Therefore, for cardholder convenience, credit cards expire so that cardholders can receive newly printed cards.

2. Fraud protection

Another reason credit cards expire is to prevent hackers from easily accessing credit cards and commit fraud. When you shop online, you typically have to provide your credit card number, security code, and expiration date. Adding this extra piece of information exponentially decreases the probability of your credit card information being stolen. 

3. Customer engagement

Expiration dates give credit card issuers a valid reason to contact cardholders. Periodic expiration dates allow issuers to send emails notifying cardholders of upcoming expirations. These messages also remind cardholders of the customer service that issuers provide, giving off a positive image.

Potential dangers

After receiving a new card, your old cards are easy targets for credit card hackers. Your card number and security code stay the same from card to card, so it is essential that you dispose of your expired card property. You should shred or thoroughly destroy your old card so that its information is unrecognizable.

Conclusions

Although activating new credit cards and cutting up old ones can be a hassle, expiration dates are necessary to keep your account secure. They add further protection for your account and allow issuers to stay connected with you. However, make sure to properly dispose of your old card when you receive a new one to prevent credit card fraud.