Canceled a credit card that was used for an autopay, gym charged new card somehow

[swbsam]

Chase, for some reason only known to them, canceled my old ATM/Visa check card and sent me a new one (when I signed up for their points program). I forgot to notify my gym and was about to call them until I noticed that I was charged yesterday for my membership.

Do banks notify billers of new account info? Because I mistakingly used my old card once and know for a fact that the card is inactive.

 

[akshatp]

No way. They must have got the charge in before Chase changed the number

 

[swbsam]

Originally posted by: akshatp
No way. They must have got the charge in before Chase changed the number

Weird, my account number changed about 2 weeks ago. Can they put a temp charge in even earlier than that?

 

[finite automaton]

Call the bank.

 

[Aimster]

I lost my American Express card and they sent me a new one. I still got charged for my monthly bills without notifying them.

 

[spacejamz]

Originally posted by: Aimster
I lost my American Express card and they sent me a new one. I still got charged for my monthly bills without notifying them.

Did your account number change? if your account number changed, there is no way that they can get your new account number and start charging on it...

 

[SoulAssassin]

Gym memberships, magazine subscriptions and a few other contractual type things are special cases. They will go through no matter what. It's basically done to protect the merchant, say you sign up for a gym membership that bills monthly and then decide you don't want it. They won't let you out of the contract so you decide to close the account. If this prevented the charges from going through then you just violated the terms of your contract with them (I know this isn't exactly the case of what happened to OP). In this case, while your account number may have changed it is still effectively the same account in Chase's system and there is a database link from the old to the new account number. Several banks tie the type of account it is (eg platinum, gold, points, etc) to the IIN which is the first 6 digits of the account number. I can't speak for Chase directly but it's probable that they do the same thing so to change your account type they had to change your account number.

/has worked in the cc industry for 10+ years

 

[AlienCraft]

Originally posted by: spacejamz

Originally posted by: Aimster
I lost my American Express card and they sent me a new one. I still got charged for my monthly bills without notifying them.

Did your account number change? if your account number changed, there is no way that they can get your new account number and start charging on it...

Sure there is...
#1 Social Engineering
#2. Fraud / Collusion within the CC System.

 

[swbsam]

Originally posted by: SoulAssassin
Gym memberships, magazine subscriptions and a few other contractual type things are special cases. They will go through no matter what. It's basically done to protect the merchant, say you sign up for a gym membership that bills monthly and then decide you don't want it. They won't let you out of the contract so you decide to close the account. If this prevented the charges from going through then you just violated the terms of your contract with them (I know this isn't exactly the case of what happened to OP). In this case, while your account number may have changed it is still effectively the same account in Chase's system and there is a database link from the old to the new account number. Several banks tie the type of account it is (eg platinum, gold, points, etc) to the IIN which is the first 6 digits of the account number. I can't speak for Chase directly but it's probable that they do the same thing so to change your account type they had to change your account number.

/has worked in the cc industry for 10+ years

Good to know - I'm not angry/upset since I had no intention of breaking contract and was just lazy/forgetful (with the Holidays and all).

Do I still need to call the gym or is all already taken care of?

 

[SoulAssassin]

Originally posted by: swbsam

Originally posted by: SoulAssassin
Gym memberships, magazine subscriptions and a few other contractual type things are special cases. They will go through no matter what. It's basically done to protect the merchant, say you sign up for a gym membership that bills monthly and then decide you don't want it. They won't let you out of the contract so you decide to close the account. If this prevented the charges from going through then you just violated the terms of your contract with them (I know this isn't exactly the case of what happened to OP). In this case, while your account number may have changed it is still effectively the same account in Chase's system and there is a database link from the old to the new account number. Several banks tie the type of account it is (eg platinum, gold, points, etc) to the IIN which is the first 6 digits of the account number. I can't speak for Chase directly but it's probable that they do the same thing so to change your account type they had to change your account number.

/has worked in the cc industry for 10+ years

Good to know - I'm not angry/upset since I had no intention of breaking contract and was just lazy/forgetful (with the Holidays and all).

Do I still need to call the gym or is all already taken care of?

It should continue to bill normally (even after the original card expires) but I would recommend updating it.

 

[LS21]

its bullshit. happened to me not on a charge card but a BANK account with auto-withdraw for an investment fund. i canceled bank account, forgot to cancel the auto-withdraw, it withdrew which gave me multiple penalties (overdraft, etc, etc). bank wouldnt budge on it. such bullshit

 

[Sphexi]

Originally posted by: SoulAssassin
Gym memberships, magazine subscriptions and a few other contractual type things are special cases. They will go through no matter what. It's basically done to protect the merchant, say you sign up for a gym membership that bills monthly and then decide you don't want it. They won't let you out of the contract so you decide to close the account. If this prevented the charges from going through then you just violated the terms of your contract with them (I know this isn't exactly the case of what happened to OP). In this case, while your account number may have changed it is still effectively the same account in Chase's system and there is a database link from the old to the new account number. Several banks tie the type of account it is (eg platinum, gold, points, etc) to the IIN which is the first 6 digits of the account number. I can't speak for Chase directly but it's probable that they do the same thing so to change your account type they had to change your account number.

/has worked in the cc industry for 10+ years

It's called recurring billing. When they submit the transaction to their processor they flag it as "recurring", which gets to the bank, and usually is processed even if the card is expired or wrong. Because that card number is forever associated with your account (they don't reuse them yet), they'll still let the charges go through.

You still want to update your info with your gym though, eventually Chase may refuse the charges from them.

/has worked in the online cc industry for 1+ year?

 

[SarcasticDwarf]

Originally posted by: Sphexi

Originally posted by: SoulAssassin
Gym memberships, magazine subscriptions and a few other contractual type things are special cases. They will go through no matter what. It's basically done to protect the merchant, say you sign up for a gym membership that bills monthly and then decide you don't want it. They won't let you out of the contract so you decide to close the account. If this prevented the charges from going through then you just violated the terms of your contract with them (I know this isn't exactly the case of what happened to OP). In this case, while your account number may have changed it is still effectively the same account in Chase's system and there is a database link from the old to the new account number. Several banks tie the type of account it is (eg platinum, gold, points, etc) to the IIN which is the first 6 digits of the account number. I can't speak for Chase directly but it's probable that they do the same thing so to change your account type they had to change your account number.

/has worked in the cc industry for 10+ years

It's called recurring billing. When they submit the transaction to their processor they flag it as "recurring", which gets to the bank, and usually is processed even if the card is expired or wrong. Because that card number is forever associated with your account (they don't reuse them yet), they'll still let the charges go through.

You still want to update your info with your gym though, eventually Chase may refuse the charges from them.

/has worked in the online cc industry for 1+ year?

So how do you prevent them from doing this? Dispute every one that comes through that is not authorized?

 

[V00DOO]

Originally posted by: SoulAssassin
Gym memberships, magazine subscriptions and a few other contractual type things are special cases. They will go through no matter what. It's basically done to protect the merchant, say you sign up for a gym membership that bills monthly and then decide you don't want it. They won't let you out of the contract so you decide to close the account. If this prevented the charges from going through then you just violated the terms of your contract with them (I know this isn't exactly the case of what happened to OP). In this case, while your account number may have changed it is still effectively the same account in Chase's system and there is a database link from the old to the new account number. Several banks tie the type of account it is (eg platinum, gold, points, etc) to the IIN which is the first 6 digits of the account number. I can't speak for Chase directly but it's probable that they do the same thing so to change your account type they had to change your account number.

/has worked in the cc industry for 10+ years

1st thing I have learned in 2009.

 

[ebaycj]

Originally posted by: SarcasticDwarf

Originally posted by: Sphexi

Originally posted by: SoulAssassin
Gym memberships, magazine subscriptions and a few other contractual type things are special cases. They will go through no matter what. It's basically done to protect the merchant, say you sign up for a gym membership that bills monthly and then decide you don't want it. They won't let you out of the contract so you decide to close the account. If this prevented the charges from going through then you just violated the terms of your contract with them (I know this isn't exactly the case of what happened to OP). In this case, while your account number may have changed it is still effectively the same account in Chase's system and there is a database link from the old to the new account number. Several banks tie the type of account it is (eg platinum, gold, points, etc) to the IIN which is the first 6 digits of the account number. I can't speak for Chase directly but it's probable that they do the same thing so to change your account type they had to change your account number.

/has worked in the cc industry for 10+ years

It's called recurring billing. When they submit the transaction to their processor they flag it as "recurring", which gets to the bank, and usually is processed even if the card is expired or wrong. Because that card number is forever associated with your account (they don't reuse them yet), they'll still let the charges go through.

You still want to update your info with your gym though, eventually Chase may refuse the charges from them.

/has worked in the online cc industry for 1+ year?

So how do you prevent them from doing this? Dispute every one that comes through that is not authorized?

Or just call up whoever you set up auto-billing with and tell them to stop it / use another card.

 

[ebaycj]

Originally posted by: V00DOO

Originally posted by: SoulAssassin
Gym memberships, magazine subscriptions and a few other contractual type things are special cases. They will go through no matter what. It's basically done to protect the merchant, say you sign up for a gym membership that bills monthly and then decide you don't want it. They won't let you out of the contract so you decide to close the account. If this prevented the charges from going through then you just violated the terms of your contract with them (I know this isn't exactly the case of what happened to OP). In this case, while your account number may have changed it is still effectively the same account in Chase's system and there is a database link from the old to the new account number. Several banks tie the type of account it is (eg platinum, gold, points, etc) to the IIN which is the first 6 digits of the account number. I can't speak for Chase directly but it's probable that they do the same thing so to change your account type they had to change your account number.

/has worked in the cc industry for 10+ years

1st thing I have learned in 2009.

Me as well. Makes sense when you think about it though.

 

[CRXican]

Originally posted by: LS21
its bullshit. happened to me not on a charge card but a BANK account with auto-withdraw for an investment fund. i canceled bank account, forgot to cancel the auto-withdraw, it withdrew which gave me multiple penalties (overdraft, etc, etc). bank wouldnt budge on it. such bullshit

you forgot, your fault

waaah

 

[LS21]

Originally posted by: CRXican

you forgot, your fault

waaah

bank not supposed to disburse money from a non-existent account. wahhh

 

[SoulAssassin]

Originally posted by: SarcasticDwarf
So how do you prevent them from doing this? Dispute every one that comes through that is not authorized?

Well let's define "authorized". In my previous example of a gym membership you would have signed a contract for X months and if on the X-Yth month you tried to cancel your card to get out of the gym membership that charge is still, in fact, authorized. You may not want it any more but you agreed to pay it

Some other places you would see this often would be QVC purchases (only 72 easy payments of $1.95 each), DVD/book monthly clubs (we'll send you this DVD on planes of WWII for just $4.95 and you'll pay $297,000 each month for a new DVD sent automatically). People have closed accounts or claimed their cards were lost or stolen to try to get out of those and it doesn't work. At one point I think AOL even billed this way which was just evil.

/for the record, doesn't work in customer service but still knows all this shit unfortunately.

 

[wwswimming]

sounds like something Club One would do. what gym was it ?

 

[Gothgar]

sue?

 

[bwatson283]

Originally posted by: V00DOO

Originally posted by: SoulAssassin
Gym memberships, magazine subscriptions and a few other contractual type things are special cases. They will go through no matter what. It's basically done to protect the merchant, say you sign up for a gym membership that bills monthly and then decide you don't want it. They won't let you out of the contract so you decide to close the account. If this prevented the charges from going through then you just violated the terms of your contract with them (I know this isn't exactly the case of what happened to OP). In this case, while your account number may have changed it is still effectively the same account in Chase's system and there is a database link from the old to the new account number. Several banks tie the type of account it is (eg platinum, gold, points, etc) to the IIN which is the first 6 digits of the account number. I can't speak for Chase directly but it's probable that they do the same thing so to change your account type they had to change your account number.

/has worked in the cc industry for 10+ years

1st thing I have learned in 2009.

Same.

 

[swbsam]

Originally posted by: wwswimming
sounds like something Club One would do. what gym was it ?

New York Sports Club

But, to be clear, I'm not complaining about them doing this - *I* signed a contract and I forgot to notify them of the change in account information. But I just didn't know that they're allowed to do this.