Have you ever wondered why credit cards have an expiration date? According to industry experts, there are two main reasons… The first is that expiration dates help protect customers against identity theft and fraud by giving vendors an additional point of verification when accepting a credit card transaction online or over the phone.
The other reason? It’s simply because credit cards don’t last forever. By supplying cards on a regular cycle, credit card companies are simply insuring that you’ll have a functioning card. Or so they say…
Credit card industry observers claim that expiration dates serve a variety of other purposes, including reminding you that you have credit available, and giving creditors a chance to re-assess your risk.
The good news is that you generally don’t have to do anything to get a replacement card — the credit card issuer will send out your new cards a month or so before the old one expires. This just happened for us, as our excellent Citi Dividend Platinum Card reward credit card expires at the end of this month, and the replacement cards showed up a couple of weeks ago.