AutoPay and Reissued Credit Cards

[travelover]

I have just about all my bills on autopay to my Fidelity AmEx card. I was recently issued a new card on AmEx's own initiative - I guess to avoid fraud. I've noticed that some of my bills, especially to nonprofits, continue to be billed to my new card number even though I set up auto pay with the old card. Other bills have bounced and I've been notified that I need to update my online account information.

So, why do some charges pass through to the new card number and some bounce?

 

[rbmrtn]

There was a thread a while back where recurring charges on new CC was mentioned. I seems it has to do with some regulations, the vendor and the CC company. Seems somewhat random, some charges stop and some keep coming.

This link has some explanation has to how it works ( but not in great detail )

Pull the Plug on Recurring Charges - NASDAQ.com

I have most of my bills on CC autopay for the cash back.

 

[Ready]

It's a really annoying problem I've had to deal with. If the merchant has an agreement to automatically bill your credit card each month for a specific period of time, their charges will continue to go through even if they use the old disabled card number. If the autopay is more for your convenience, but you have no contractual commitment with the merchant to continue using their services for a specific period of time, the charges may be denied under the old number.

I had this problem with Skype last year, which was set to auto-renew, and renewed to a credit card I completely cancelled. Because of the renewal fee, the bank reactivated the card and sent me a bill. I was furious and argued with them on the phone about it, and they pointed me to some new credit card regulations that require them to honor certain merchant transactions after a card has been completely cancelled.

So bottom line, there is no way to completely cancel a credit card and guarantee it will never be used again.

 

[growing_older]

After hassling with this when I had to replace a card I used for autopay and regular use, I got a new card ONLY for autopay. It will be just as much hassle if it gets compromised, but I'm hoping that's less likely if it's only used for autopay.

 

[Chuckanut]

I

I had this problem with Skype last year, which was set to auto-renew, and renewed to a credit card I completely cancelled. Because of the renewal fee, the bank reactivated the card and sent me a bill. I was furious and argued with them on the phone about it, and they pointed me to some new credit card regulations that require them to honor certain merchant transactions after a card has been completely cancelled.

Gosh, I wonder how many consumers lobbied Congress to get this regulation passed??

 

[Cassie]

MasterCard notified me about a new card and number being issued. I only have 2 recurring charges that will be affected. I wondered if this move was because of the recent hacking. At 1st I was annoyed, however, now I'm glad.

 

[Texas Proud]

It's a really annoying problem I've had to deal with. If the merchant has an agreement to automatically bill your credit card each month for a specific period of time, their charges will continue to go through even if they use the old disabled card number. If the autopay is more for your convenience, but you have no contractual commitment with the merchant to continue using their services for a specific period of time, the charges may be denied under the old number.

I had this problem with Skype last year, which was set to auto-renew, and renewed to a credit card I completely cancelled. Because of the renewal fee, the bank reactivated the card and sent me a bill. I was furious and argued with them on the phone about it, and they pointed me to some new credit card regulations that require them to honor certain merchant transactions after a card has been completely cancelled.

So bottom line, there is no way to completely cancel a credit card and guarantee it will never be used again.

Any reference to the law I have never heard of this and would like to see if it is true...


Also, our Skype was bounced when we got a new card.... DW was mad when the account went to zero when she was talking to he mom...

 

[kcowan]

I used to notice that regular charges, i.e. monthly got honored, while irregular ones did not. And the statement would summarize all the charges to the older card.

Now it seems to be more random.