Do Credit Cards Expire at the End of the Month?
Discover when credit cards expire, the reasons behind it, and crucial steps to take for a smooth transition to your new card.
Credit cards typically expire at the end of the month and year printed on the card. This ensures payment instruments remain current and secure.
Credit Card Expiration Explained
The expiration date listed on a credit card signifies that the card is valid through the last day of the stated month and year. For example, a card showing “07/25” is active until July 31, 2025. This expiration serves several purposes for card issuers. One reason is to manage physical wear and tear, as plastic cards and their embedded chips can degrade over a few years of regular use.
Another reason for expiration dates is to enhance security and prevent fraud. Requiring a valid expiration date for transactions, especially online, adds another layer of verification. This also allows card issuers to periodically update card technology, introducing new chip features or contactless payment capabilities. Most credit cards are set to expire every three to five years, depending on the issuing bank.
Implications of an Expired Card
When a credit card reaches its expiration date, the physical card becomes invalid and cannot be used for new purchases. Attempts to use an expired card for in-person transactions or online purchases will likely result in a declined payment. While the physical card expires, the credit card account remains open and active.
A significant consequence of an expired card is the potential disruption to recurring payments and subscriptions. Services that automatically charge the card, such as streaming services, utility bills, or gym memberships, will typically fail if the card details are not updated. This can lead to service interruptions or late payment fees. Updating payment information promptly avoids these issues.
Actions After Expiration
Card issuers typically send a new replacement card before the old one expires. This new card will typically have the same account number but with an updated expiration date and a new security code (CVV). Upon receiving a new card, activate it promptly via a toll-free number, the issuer’s online portal, or their mobile banking app.
After activating the new card, update any recurring payments, subscriptions, or saved card details with online merchants to ensure uninterrupted service. This prevents failed transactions and service disruptions. Finally, safely dispose of the old, expired card to protect personal information. Plastic cards require shredding or cutting through the magnetic stripe, chip, and card number. Metal cards may require returning them to the issuer for specialized disposal due to their durability.