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I recently found out I got tangled into some sort of scam which I wrote about it this question.

The other mysterious bit of it is that the scammers were able to hold on to my new card details even though the old card details takeover had taken place way before I applied for a new card.

Just to clarify, the cards are in the same bank and have the same number but different expiration dates.

The question is, how the scammers (or retailers in other cases) are able to update card details automatically without me knowing about it?

matewilk
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1 Answers1

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It sounds like the website you have been subscribed to is using either the Visa Account Updater or Mastercard Automatic Billing Updater service to get details of new cards so that continuity of recurring billings can be maintained. Something that I had no idea existed until now (the schemes have apparently been around since 2006!)

According to this Guardian story about someone who discovered Amazon knew their new card details before they did:

None of us, it seems, were aware of VAU – Visa Account Updater. This allows subscribing merchants to receive automatic updates to cardholder account information, including account numbers and expiry dates. It sounds ominous, but the idea is to save retailers – and customers – the hassle of recurring payments being declined when a registered card has expired.

After noting that Mastercard operate a similar scheme, it notes (emphasis mine):

The reason so few of us know of it is because its existence is buried in the terms and conditions of the card issuer. If you want to opt out, you have to do it via your bank.

Some Links

TripeHound
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