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SANDY — If you cannot stop automatic payments from hitting your credit card, you might cancel that card and get a new number. However, when Kevin Patterson tried that, his credit card company gave his new number to the very company he was trying to stop.
Patterson is making payments on a debt that he owes. Every month, he pays $150 toward that debt using his Capital One credit card. When he was ready to make the final payment to pay off the balance, he says he checked with Capital One to ensure those automatic payments stop.
"They're my credit card company," he said. "I can say, 'pay this guy,' or 'don't pay this guy.'"
Patterson says Capital One told him that the best way to stop the payments is to cancel his credit card and set up a new one. He did. The thing is, the payments did not stop. The new card with a new number has been charged by his lender – twice!
"I'm like, well, what if it was fraud? What if it was a fraudulent charge? How do I shut that down? What do I do?" he asked.
This is a subject we have reported on before. Back in 2020, Grant Larimer was a victim of identity theft. Someone used his name and Capital One credit card to sign up for a membership at a Planet Fitness in California. Larimer told us had never been a member.
"Certainly not in Los Angeles."
He reported the fraud to Capital One which issued him a new card. But then Capital One gave the gym Larimer's new card number, allowing the bogus charges to continue. Turns out, Capital One as well as other major credit card issuers, will share a customer's new credit card number with a merchant.
"It's a service to make sure the customer doesn't miss a payment just because they got a new card," said LendingTree chief credit analyst, Matt Schulz. "It allows that card to be updated automatically without you having to take the time to go in and do it."
But it can backfire when the whole point of canceling the card was to make the payment stop.
"Updating services can throw people off and can seem a little intrusive for folks," Schulz said.
"We're $300 into these guys now," Patterson said of the recurring charge hitting his credit card.
He was able to get in touch with the merchant and get the company to put the kibosh to the automatic charges. But he offers this warning: Just because you cancel a credit card, that does not guarantee the charges will stop.
In a statement, Capital One said it has digital tools to help customers manage their recurring charges; that includes the creation of a virtual card for a specific store. Then, cardholders can set custom expiration dates that automatically lock their virtual card after a specific date and thus preventing additional charges.
FAQs
Auto Card Info Update
Issuer sends an A(PAN) or E(Expiration) update to VAU. When merchant requests updated card information, VAU shares the updated card information with the merchants.
How do companies get your new credit card information? ›
Turns out, Capital One as well as other major credit card issuers, will share a customer's new credit card number with a merchant. "It's a service to make sure the customer doesn't miss a payment just because they got a new card," said LendingTree chief credit analyst, Matt Schulz.
How companies know your new credit card number before you give it to them? ›
How Updater Services Work. Each month, merchants send a list of names and card numbers to their acquirer, or payment processor, who check their data against Visa, MasterCard, American Express and Discover, Lindeen explained. The acquirer lists the cards with updated information, and returns the list to the merchant.
What happens when you get a new credit card number? ›
Your account history will remain intact — only your credit card number will change, which will be linked to the same account you've had open with that issuer.
How did someone get my new credit card number? ›
Scammers steal credit card numbers in a variety of ways, such as through phishing attacks, hijacking payment forms, intercepting public Wi-Fi, and more. Last year, the Federal Trade Commission (FTC) received 1.1 million identity theft reports, with nearly half of those involving credit card fraud [*].
How does a merchant verify a credit card? ›
Card validation methods
Checking the three- or four-digit code on the back of the card is a straightforward and effective verification method. By asking customers for this code during checkout, businesses can make it more difficult for unauthorized individuals to complete a purchase using stolen card information.
Who verifies credit card information? ›
Key Takeaways. Every credit card transaction is authenticated and authorized (or declined) by the bank or other financial institution that issued the card. Authentication is the step in which the merchant verifies that the cardholder is who they say they are.
Who tracks all of your credit card information? ›
Nationwide consumer reporting companies. There are three big nationwide providers of consumer reports: Equifax, TransUnion, and Experian. Their reports contain information about your payment history, how much credit you have and use, and other inquiries and information.
How did people get my credit card information? ›
Credit cards can be stolen in a variety of ways: Through theft of a physical card, via data breaches, by card skimmers—the list goes on. Zero liability protections may prevent you from being financially responsible for fraud, but a credit card theft remains an inconvenience at best and a nightmare at worst.
How did hackers get my credit card info? ›
Accidentally downloading malware or spyware can enable hackers to access information stored on your computer, including credit card information and other details. For example, a malware attack might use a keylogger that records your keystrokes or browser history and then sends that information to a hacker.
Identity thieves can retrieve account data from your card's magnetic strip using a device called a skimmer, which they can stash in ATMs and store card readers. They can then use that data to produce counterfeit cards. EMV chip cards, which are replacing magnetic strip cards, can reduce this risk. Spying.
How to find out if someone is getting credit cards in your name? ›
The best way to find out if someone has opened an account in your name is to pull your own credit reports to check. Note that you'll need to pull your credit reports from all three bureaus — Experian, Equifax and TransUnion — to check for fraud since each report may have different information and reporting.
Can I get my new credit card number before it arrives? ›
Instant credit card numbers give you access to all or part of your new line of credit before the physical credit card arrives in the mail.
Can two credit cards have the same card number? ›
As a security feature, all cards will have a unique number and will arrive separately.
Can you get a new card without changing the number? ›
If it's damaged, you can order another card with the same number.
Does the merchant see credit card details? ›
The bottom line
Merchants will typically ask you for permission before storing your card information to avoid running afoul of laws, and it's common for online sites to ask to store your information to facilitate future transactions or to enable recurring charges.
Does getting a new credit card number cancel subscriptions? ›
Remember automatic payments
Keep in mind that any bills that you'd set up to automatically pay with your credit card — subscriptions, gym memberships and so on — may continue to be charged to the old number.
How did people get my credit card info? ›
Skimming: Criminals attach skimmers to ATMs and point-of-sale (POS) terminals that capture and store all the info on your card's magnetic strip. Phishing: Pretending to be a reputable organization, fraudsters use fake emails, websites, and phone calls to trick individuals into revealing card details.
How does scammer know my credit card number? ›
Using card skimmers or shimmers
Thieves install skimmers on ATMs, gas pumps, and other publicly available card readers. Shimmers are the natural evolution of card skimmers. But instead of stealing data from your card's magnetic strip, they go inside the reader and steal your chip information.
