Depending on what financial philosophy you subscribe to, a debit card may be your best friend. Paying with a debit card is a surefire way (outside of loans) to make sure you don’t have any debt. But what happens when your debit card expires?

In today’s post, we’ll answer that question, as well as some related questions.

Why do debit cards expire?

The reason debit cards expire is to prevent fraud. Banks and credit unions make you “renew” your card to thwart fraud.

Think about it. When you’re making a purchase online, they ask for various pieces of information. Name, billing address, card number, security code (CVV), and EXPIRATION DATE.

This also gives the card issuer (bank or credit union) the ability to keep their customer’s identity safe. Every few years, cards get more sophisticated and come up with a new feature. Magnetic strip, then chip reader, then contactless.

Your card number shouldn’t change when it is renewed. The only time your number would change is if you cancel your card, due to losing it or someone stealing it (or the number, expiration date, and CVV), and you need your financial institution to issue you a new one.

Your replacement card

When your debit card expires, your replacement card will come in the mail at least one week before your card is set to expire.

Once you receive your replacement card, activate it, and securely destroy your old card. There are a couple of ways to destroy your old debit card.

• Shred it
• Cut it up and place pieces of the old card in different refuse bins around your home. Better to even throw out pieces across multiple pickups. One week, throw out a piece. Then throw out more than next week. And so on.
• For more…read a related post about recycling bank statements.

Word to the wise

Expired debit cards cannot be used to make purchases. If you try, your card will decline. If you have recurring purchases tied to your card, make sure that’s updated with the new expiration date.

Related reading:

The Things You Need To Do to Protect Yourself From Identity Theft

5 Ways to Prevent Identity Theft from Happening to You

A Deep Dive into Credit Cards

**Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see website for full disclosures: www.crgfinancialservices.com

Jacob Sensiba

My name is Jacob Sensiba and I am a Financial Advisor. My areas of expertise include, but are not limited to, retirement planning, budgets, and wealth management. Please feel free to contact me at: jacob@crgfinancialservices.com

 

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