(From the Financial Literacy Blog) – If you have a debit card, you’ve likely noticed the date printed on the front. This is your card’s expiration date. All debit cards expire within two to five years from the date of issuance, so it’s important to keep that date in mind as you make payments, withdraw cash from ATMs, or link your card to cover recurring bills. If you’re wondering why cards expire and what you should do when that date comes, we’ve got you covered.

Why do cards expire?

Cards expire to protect you, the consumer. The longer someone is in possession of a debit or credit card, the greater the chance of fraudulent usage. An expiration date adds an extra layer of fraud protection to your account. The expiration date and the 3-digit number on the back of your card (CVV) are often used as a verification method when using your card online or over the phone. If someone has obtained your card number, it will be more difficult for them to commit fraud if they don’t have your card’s expiration date. To make your card more secure, the expiration date and CVV number must change over time.

Wear Prevention

Debit cards are subject to wear and tear over time. The numbers can wear off, the magnetic strip or chip can get scratched, and the card can bend or crack––ultimately making your card unusable. If your card becomes unreadable and stops working unexpectedly, you can find yourself in a tough situation.

Technology Updates

Debit cards need to keep up with recent technology changes to both protect your finances and improve your card-using experience. When your old card expires, your credit union will issue you a new one––often with updated security and payment features. For example, it wasn’t that long ago where people swiped their cards at most checkout stations instead of inserting the EMV chip. The chip process is much more secure. Technology continues to progress and, if you don’t already have one, your card may eventually be updated to be contactless. These cards use NFC (Near Field Communication), which allows you to simply tap your card against the checkout station to make payments, eliminating the need to insert it into a point of sale terminal.

What should you do when your card expires?

Activate Your New Card

Whether you get your new card in the mail or in-branch, it will typically have an activation sticker on the front that explains how to activate the card. It may direct you to your credit union’s website or app, but it most commonly shows an activation number for you to call. Simply call the number and follow the prompts. You’ll likely need to enter the 16-digit card number, the CVV number, and PIN to activate the card. Alternately, you can just use your new debit card to make an in-store purchase using a card reader. Run the transaction as debit and enter your PIN, and your card will be officially activated. If you run the transaction as credit, it will not work. If you didn’t already have an established PIN, you’ll have to use the first method for activation.

Dispose of Your Expired Card

Your debit card expires on the last day of the month shown on the front of your card. For example, if your card lists 12/22 on the front, you’ll be able to use that card for the entirety of December. However, as soon as January begins, your card will no longer work. As soon you activate your new card, you should dispose of your old card. However, don’t just simply throw it away. This increases the likelihood of a fraudster getting ahold of your card and stealing your identity. Instead, shred your card or cut it up into small pieces. For even more protection, dispose of the pieces in a few different trash bags. This reduces the chance of someone piecing together your card. While it would be a lot of work, the benefits can outweigh the negatives for fraudsters.

Update Your Billing Information

When you get a new debit card, you need to update your billing information on all accounts that were linked to your previous card. While your card number may be unchanged, you’ll have a different expiration date and CVV number. Updating that information can prevent missed payments or late fees. Take some time to also think about where your card has been linked. Perhaps you’ve linked the card on Venmo, PayPal, Amazon, or even to automated utility bills. Be sure to do an inventory of everywhere you have your debit card information saved to ensure nothing slips through the cracks.

Questions?

Make sure to take the necessary steps after you receive your new card to limit the risk of fraud and to ensure a positive card usage experience! If you have any questions about your debit card, contact your local credit union.