Why Do Credit Cards Expire?

Contributed by mm | February 7, 2005 02:59 PM PST

Ever wondering why each of your credit cards has an expiration date? Bankrate provided some reasonable answers.

First, expiration date provides another layer of security besides name and billing address. Almost all online merchants ask for the expiration date to verify your ownership of the card (some will go one step further and ask for the security code on the back of your card).

Second, the plastic strip on the back of credit cards will wear off over time, and having an expiration date will force you to move to a new plastic before the old one stops working.

Plus, when your card expires, it provides a great opportunity for credit card companies to reestablish relationship with you. When you activate your new card, banks will be able to get your new phone number and probably upsell you more products.

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Comments

>>> Rhiannon Commented on February 08, 2005

A slight aside to this...how shocked was I to learn recently that some UK households have upwards of 40 credit cards, UK consumers have 66.8 million credit cards which is actually five times higher that the European average, and UK consumer debt has broken the trillion pound mark in 2005. Maybe more credit cards should expire permanently before more people spiral into the debt trap.

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