Why Do Your Credit Cards Expire?

There are many credit card offers on the market nowadays! But as every product, credit cards have their expiration dates. Of course it makes sense when baloney, milk or hot dogs expire, they simply go bad, but what about plastics? Have you ever thought why you can't use your card after a certain date?

Certainly if your credit card company has such a rule, there must be some reasons for the expiration date on your plastic. So what are they?

Some credit card users think that credit card companies have expiration dates on their plastics just to get more money out of your wallet, because they charge money for the new plastics once in three or four years. But is it really so?

Different credit car companies put an expiration date on your card for different reasons. But the main reason for all banks and companies like Visa or MasterCard is cardholder protection against identity theft and fraud. Expiration dates are the most effective against fraud when transactions are made manually. In America most transactions are made electronically so in some sense the expiration dates become less important, but still rather significant.

Another reason for the expiration date is that the magnetic strip even on best credit cards is good only for three or four years! Unlike diamonds, credit cards are not forever! After some period of time the strip gets worn off or it can get cracked, so it is essential for credit card companies to supply their customers with new plastics on a regular cycle. It is extremely important for both customers and credit card issuers to know that the magnetic strip is functioning the way it is supposed to! It is up to your credit card issuer to decide the lifespan of your credit card, but its average lifespan is approximately three years.

It is also very important for your card issuer to find out if you are still associated with your plastic. Let's say you have had a credit card for a long time, but you haven't used it lately. The expiration date is a good chance for Visa or American Express to re-establish contact with you!

The representatives of your company can call you and remind that your card will soon expire and you will get the new one! Even in case you are not satisfied with your current credit card, they can inform you about their new attractive credit card deals! Always keep in mind that credit card companies do their best in order to keep you as their customer!

As you can see everything in credit card business is done for a reason: from signing your credit card to an expiration date on your plastic!

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