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    8 Replies Latest reply on Nov 10, 2008 7:41 AM by amspcs

    Credit Card Charges on New Account Number

    DomainDiva Ranger
      A few months ago my business credit card was compromised. I closed the account and was issued a new account number. Instead of opting to renew some anti virus software I decided to let it expire, delete and install ESET. After all they can't renew on an old account # right? WRONG!!!!

      Today I received an email that the anti-virus subscription had been renewed, and that my new credit card number had been charged. This was confirmed by Citibank. How did they get my new credit card number? Is this legal? Whenever I have an account number change I always have to go through the change account numbers on the few things that are automatically charged to the card.

      I have told Citi that I will dispute the charges and the charge is flagged, it will all be OK but I am stumped? What allows them to do this? How did they get the new account number?

      DD
        • Re: Credit Card Charges on New Account Number
          intechspecial Ranger
          DomainDiva -

          I would contact the company that charged your account immediately.

           

          InTech "Special"
          • Re: Credit Card Charges on New Account Number
            Bluesuit Adventurer

            I can sort of relate to you. I had gone to the eye doctor and only gave them my eye insurance info which was rightfully charged, but a few months later, they charged my medical insurance provider too - - info that I never provided to the eye doctor. How they got access to that info, I don't know. So, I ended up calling my medical insurance provider and refutted the charge/service.

            • Re: Credit Card Charges on New Account Number
              Lighthouse24 Ranger

              My understanding is that because there are so many bank mergers and acquisitions these day (plus the usual volume of lost and stolen credit cards), more than 60 million credit card numbers changed last year. By one estimate, 45 percent of all recurring payments would be declined if credit card companies didn't accept the old and expired card numbers that are submitted for these. So banks assume that if the charge is or was ever a valid one associated with you, then you still want it processed (which turns out to be correct the vast majority of the time for most customers) -- and they sort out the exceptions on the back end, as in your case.
                • Re: Credit Card Charges on New Account Number
                  Lighthouse24 Ranger

                  Adding to the above, when recurring bill payments, subscriptions, and services are set up for credit card payment, the bank/card company continues to honor and pay those even when the merchant is submitting an expired or changed card number. So for consumers, it's necessary to notify the merchant, in writing, to stop billing the card as of a specific date - and to keep a copy in case they don't. It's the only thing that will guarantee that the bank/card company removes the charge.

                  For small merchants (like many in this community), that's one of the potential problems with some e-store "packages" (where it's a third party, not the merchant, that accepts, retains, and submits the customer's credit card number) -- they make it easy for the customer to sign up for recurring payments and subscriptions, but they don't provide an equally convenient way for the customer to change billing information or cancel. So if that third party continues to submit an expired or changed card number, the bank/card company will assume that the customer wants whatever it is and continue to pay it -- but the merchant may eventually get hit with months and months of chargebacks, funds may be frozen while problems are investigated, etc. So merchants who sell products or services with recurring payments or subscription billing have to be proactive about this, too.

                • Re: Credit Card Charges on New Account Number
                  amspcs Ranger
                  Hello Domain--

                  First my disclaimer. My specialty is in the merchant end of the credit card processing business, not the consumer end. That said, I may have some valuable thoughts on your consumer issue.

                  It appears clear to me that if a charge went through on the original account number you thought was closed, then in fact that account was not closed. So my question to you would be: HOW did you close the account?
                  If you did it in writing as you should have, sent certified return receipt requested, then you have sound footing to stand on and you shouldn't have a problem. If, however, you did it by phone as so many people do, then plain and simply the person on the other end never completed the 'close' process. Happens all the time unfortunately---that's why phone bank people don't make the big bucks.. Moral of story: Bank accounts of all kinds (including merchant accounts BTW) should be closed IN WRITING, signed by the same person whose signature opened the account in the first place, certified return receipt requested.

                  The danger in not closing accounts correctly is that, since they remain open when the owner assumes they are closed, that account is in danger of being victimized by ID theft. Very dangerous.

                  AMSPCS
                  amspcs@juno.com

                    • Re: Credit Card Charges on New Account Number
                      DomainDiva Ranger
                      Thanks to everyone who responded. The vendor came clean. Evidently they have an 'agreement' as they called it to work with credit card companies to keep card numbers current. Sounds like a racket to me. Citibank is in danger now of losing my business. I am extremely angry about this.

                      Note: I closed the account on the phone with a bank representative. I usually have to close one account a year due to fraud and this is the first time this has happened to me.

                      If anyone would like the name of the vendor feel free to email or give a shout.

                      Thanks everyone for all the good answers....now I am a better edcuated consumer as well!!!
                        • Re: Credit Card Charges on New Account Number
                          intechspecial Ranger
                          Good to hear DomainDiva!

                          Keep up the good work!
                            • Re: Credit Card Charges on New Account Number
                              amspcs Ranger
                              Domain, glad to hear its all worked out. But I note from your comments that you have made a mistake
                              which might well lead to renewed headaches for you. You stated you closed the account 'on the phone'. As I noted previously, never never never never never never never close accounts on the phone. Do so in writing, sent certified return receipt collected and keep a copy for yourself. This is due to privacy and security concerns--how does the person on the other end know it's you and not somebody else with quesetionable intentions manipulating your account? Also, should future issues asive, having a copy of your correspondence along with delivery confirmation constitutes a very important paper trail--"I talked to Joe on the phone 2 or 3 months ago" won't get you far as a defense.

                              AMSPCS