The scam that is Visa Account Updater
I ran into an issue where I had some subscriptions that were very difficult to cancel, so I decided to just cancel that credit card number. I called Wells Fargo, told them to give me a new credit card number, which they did and I moved on with my life.
Next month, a bunch of the same charges. I call them back, they tell me about Visa Account Updater. I am extremely taken back that this is even possible. I told them I didn't want to be a part of that program, they told me that Visa handles this and not them. I call Visa and they tell me they don't handle this and that Wells Fargo does.
I call back Wells Fargo, they tell me they have no idea how to opt out of it. The lady asks her manager, the manager also doesn't know. She spends some time searching their documentation, nothing in the docs. She tells me the sure fire way is to close the account entirely and create a new account with a new card. I'm deeply annoyed but go ahead and do this.
Next month, guess what? A bunch of the same charges again, on a fresh account I haven't even activated the credit card for. I call Wells Fargo back, they talk more about Visa Account Updater but have no way of turning it off or rectifying the situation.
I'm now on hold for the last two hours as they try to figure out what to do about this. I can't believe this is even legal, its the most insane business practice I've ever seen. I get that this may be handy in some situations but its clearly a scam designed to perpetuate charging subscriptions to credit cards.
Hope this helps the next person.
This process does not have any protections for card holders. It was designed probably to benefit merchants from customers that change cards with unpaid bills, but is marketed as convenience (you change your card and don’t hav to worry about updating it everywhere).
I think this should be better regulated. Not every merchant type should have access to this. I can see utilities and rent maybe, but there should still be a process to opt out.
Under the bonnet, card hosts like Base2000 have an underlying account number for the credit facility, and various PANs (card numbers) are attached to that. Even if a singular card is cancelled, transactions posted in batch can be routed to the appropriate credit facility as the host knows all current and past PANs.
If you have subscriptions that are difficult to cancel, the best path is to ask your bank to block and/or dispute the transactions in question. Getting a new card with a new PAN may not be sufficient.
Also, sometimes getting a new credit card will still have the same number, just a new expiration date and security code.
Also take note that a recognized payments processor using the bank's api does not need to prove anything when they create a new recurrent payment on your account. They can do so at will. The bank relies solely on you noticing and disputing that claim. Services that consult you in becoming such a processor stress this as a 'feature' accompanied by abundant nudges and winks.
>magically reroutes to new card numbers no matter how complicated the change
>out $500
I don't need to play 20 Questions to know you're talking about legalzoom
That's an issue between me and the merchant. I don't want MY bank acting as an enabler for the merchant over my wishes, with my money.
Based on the brief detail provided, I think OP's mistake was to cancel/reissue the card rather than dispute the charge / block the merchant.
They also provide ability to pause card after which no transaction would go through.
What kind of charges? Did you cancel the subscriptions, disputed them with the bank? Sometimes I read advice to "just cancel the card" instead of proper cancelling a subscription.
Closed my account and moved on.