4 ms·

For this the best solution is virtual cards. When you want to cancel, don’t argue with customer service about canceling. Just lock the card.

msluyter 3y ago
Is this actually legally viable? I'd be worried that you could be technically considered to be under contract and get fined for late fees/penalties on top of other charges, get referred to collection agencies, etc...
mminer237 3y ago
Doesn't that just make you in default? You hope they decide to cancel you and write off your debt, but legally couldn't they just keep charging you every month, ding your credit, and eventually sue you for the balance?
googlryas 3y ago
Not paying is not the same thing as canceling service. Many services will not let you continue using them if payment fails, but others will, and you will still be on the hook for the charges from a collection agency. The only time virtual cards are particularly useful is if you're giving your CC# to some very shady merchant, probably one without any recourse if you decline payment. But, perhaps, just don't give those people your cc# in the first place.
- tzs 3y ago
  They can also be useful if your CC data gets leaked in a breach. If it isn't a virtual card your bank will probably cancel your existing card and issue you a new card with a new number. Some merchants where you had the old card on file might get the new number automatically via a credit card update service, but it is likely some will not and then you need to remember to go manually update them if you want them to keep working. If you had used a virtual card on the site that got breached it should in theory not affect the underlying card or any other virtual cards derived from it.
  - NoZebra120vClip 3y ago
    This is a primary reason I use PayPal: never give up your cards to any merchant. Choose your method of payment freely. New/changed card deets? Change them in one place only, and Bob's your uncle.

msluyter 3y ago

Is this actually legally viable? I'd be worried that you could be technically considered to be under contract and get fined for late fees/penalties on top of other charges, get referred to collection agencies, etc...

mminer237 3y ago

Doesn't that just make you in default? You hope they decide to cancel you and write off your debt, but legally couldn't they just keep charging you every month, ding your credit, and eventually sue you for the balance?

googlryas 3y ago

Not paying is not the same thing as canceling service. Many services will not let you continue using them if payment fails, but others will, and you will still be on the hook for the charges from a collection agency. The only time virtual cards are particularly useful is if you're giving your CC# to some very shady merchant, probably one without any recourse if you decline payment. But, perhaps, just don't give those people your cc# in the first place.

tzs 3y ago
They can also be useful if your CC data gets leaked in a breach. If it isn't a virtual card your bank will probably cancel your existing card and issue you a new card with a new number. Some merchants where you had the old card on file might get the new number automatically via a credit card update service, but it is likely some will not and then you need to remember to go manually update them if you want them to keep working. If you had used a virtual card on the site that got breached it should in theory not affect the underlying card or any other virtual cards derived from it.
- NoZebra120vClip 3y ago
  This is a primary reason I use PayPal: never give up your cards to any merchant. Choose your method of payment freely. New/changed card deets? Change them in one place only, and Bob's your uncle.