Why do debit and credit cards have expiration dates?

Credit cards and debit cards make in-person purchases much more convenient, and they make it possible to shop online. However, there are a range of details you need to keep track of when you use any type of card for spending.

For example, you’ll need to keep track of your credit card expiration date or the date of expiration listed on your debit card. This date represents the length of time either card type is valid and can be used. Once this date has passed, you’ll need to get a replacement card for your account.

Why do cards have expiration dates?

Credit and debit cards have expiration dates for several important reasons, including the fact plastic and metal cards aren’t necessarily made to last forever. Expiration dates can also help keep your information and data secure, and they can ensure you are eligible for improved credit card security features that are added to new cards over time.

Here’s a rundown of the most important reasons credit card expiration dates matter and why you should welcome getting a new card every few years.

Fraud prevention

Credit card expiration dates (and expiration dates for debit) provide extra fraud protection during transactions where your card isn’t present. This is mainly because it’s another piece of information criminals would need to match to use your card for a purchase. If someone who isn’t authorized to use your card attempts to purchase something online, and they don’t have the expiration date, the purchase most likely won’t be possible.

That said, it’s important to remember that most credit cards have $0 fraud liability policies. This means you won’t be on the hook for fraudulent purchases made on your account, regardless of whether the criminal has your account number, expiration date and other card details.

Card security updates

When your card expires, you are typically sent a new credit or debit card in the mail. This new card will have a new expiration date that will likely extend a few more years.

This new card may also have updated bells and whistles that your card issuer has been developing to keep your data secure. For example, you may notice that your updated card has some new technology, like an EMV chip or contactless capability.

Account renewal

When your card expires, you have the chance to decide whether you want to renew it. While you can always continue with your account the way it is, this is a good time to review your credit card agreement to ensure that the terms and conditions meet your needs. During this process, you’ll want to consider your card’s rewards structure, added fees you pay regularly and your interest rate, among other details.

Your issuer may take the opportunity to market new credit card services to you. If you decide your card is no longer meeting your needs, see if your credit card issuer offers a card that may better suit your spending. For example, you can use this opportunity to upgrade from a student credit card to a cash back credit card for good credit or to switch from a traditional rewards credit card to a premium travel credit card.

You can ask about making a product change during your renewal period rather than closing the account altogether and forgoing any negative effect on your credit score. Just be aware that upgrading a card or making a product change can mean missing out on a new credit card sign-up bonus if the card has one. If you want to earn a welcome bonus, you can just apply for the new card you want separately and close the old account. You can also keep it open to increase the average length of your credit history, which can help your credit rating.

Credit card wear and tear

Credit and debit cards may seem designed to last forever, but many start to show wear and tear over time. If you’ve ever been in the checkout line trying to use a card with a worn out magnetic strip or EMV chip, you know this from experience.

When your card is replaced, however, you are upgraded to a new one that is made to last for at least a few more years.

Renewing your credit card

If you’re wondering what to do when your debit card expires, you may not have to do anything. Most of the time, your card issuer will take care of the process for you by automatically sending you a new credit card or debit card in the mail.

You should receive some kind of notification in the mail or via email about a new card being on its way as the expiration date approaches. If you aren’t interested in continuing your credit card service, this would be a good opportunity to notify your card issuer that you don’t wish to renew.

If you choose to renew, the next step is to receive your new card. If you’re planning a move during that time frame, contact your issuer to update your mailing information. You’ll also want to contact your issuer if you plan to be away from home when your card is scheduled to arrive. Ask if you can receive your card before your departure date or if they can hold off sending it until you return.

Once your card arrives, you must activate it before you can use it. If you use your card for any automatic payments, like a utility bill or subscription service, you’ll need to contact those service providers to update your card information.

What to do if your card doesn’t arrive

You’ll receive a written notification when your new card is on the way, but if it doesn’t arrive within two weeks of receiving that notification, contact your issuer. Your card may simply be lost in the mail or possibly stolen. As a security measure, your issuer will send you another replacement card.

If your old card is set to expire before the new card arrives, check with your issuer to see what they can offer to keep your card service from being interrupted. In the event that you have to wait it out, be sure to make arrangements with any service providers that will be expecting an automatic payment from your credit card.

If you have bills set up for automatic payments on your old card and you’re worried you won’t get your new one in time, consider moving the automatic payments to another credit card or debit card you have for the time being. You can also pay your bills with other payment methods while you wait for your new card to arrive, including cash or paper checks.

Using an expired card

You may be wondering, if my debit card expires this month, can I still use it? The answer is almost certainly “no.” If you use your old card after the expiration date, the transaction will likely be declined. That said, you usually have until the last calendar day of the expiration month before your service will be deactivated entirely.

If you don’t have your new card already, you’ll want to contact your issuer to see if a replacement has been sent. And if not, find out why and what will happen with your service moving forward. Whether you have a working card or not, you are still responsible for the terms of your credit card account. This means you will still be responsible for making monthly payments on any balances you carry, even if your card service is interrupted.

The bottom line

Credit card expiration dates may seem like a hassle, but they serve a purpose and can help you in ways you may not realize. Some benefits of credit and debit card expiration include fraud protection and card longevity, and expiration dates also allow you to decide if a card is still meeting your needs.

Remember that expiration dates apply to the physical card, not the account. So, when your credit or debit card is set to expire, this doesn’t mean your account is coming to an end. If you currently carry a balance on a credit card, your credit card debt isn’t going away. Most of the time, you’ll get your new card in the mail, activate it and carry on as normal.