A stopped/replaced AMEX card is not really cancelled

[BlueAU]

OK, I might be wrong here, but this is my understanding, and I had it explained 3 times by 3 different people at "Platinum Service at AMEX".

When you have an AMEX card, and you replace a card because it is lost/stolen, that physical card is stopped. However, the number is still valid, and can be used for online purchases.

When you order a replacement because you have a worn out card (unfortunately happens often, magnet dying, card looks dodgy from over use etc), you get a new one in the mail, and when you activate the new one, the old one becomes inactive. However, the number is still valid, and can be used for online purchases!!

I thought that once a card is stopped, it cannot be used, however to my surprise, I have had a vendor charge me for auto web hosting that was probably 3 years ago, on a card number that would have changed at least 3 times!

This week I tested it out. I reported my card as lost/stolen, and got a new one 2 days later (Sydney). I then used the old card number on an online billing site, that did not need the 4 digit AMEX CCV number. The transaction worked.

Now this really annoys me :evil: that it really isn't stopped. I know that when you do this on VISA, it really is stopped.

What's to stop someone from breaking into a database, stealing your card number and putting transactions through (OK, so there is fraud protection, transaction disputes) etc.

So I asked one of the consultants "So if you give me a new one and I've lost the old one, what is the point in telling the new merchants?" I got silence, then was told "Well umm, nothing really, it will still work. However you could have problems if you need to return something and the merchant needs a copy of the physical card, e.g. fax of it for a travel agent to process a refund to prove you have it, so it's best to tell people". I think that example wasn't a particularly good one, but that's all they could come up with.

To my understanding this just means that I will always be 'liable' for organisations that have my number, until the day I close my AMEX account, regardless of how many lost/stolen/replaced cards I have.

Anyone else think I am on the right/wrong track? I think it's a joke really that "stopped" isn't really "stopped".

 

[yohy?!]

It has to do with the way the card was cancelled and the types of transactions being processed.

Cancelling plastic that is damaged is considered less risky than lost or stolen plastic. The card number can still be used because it is not considered to have fallen into anyone else's hands.

Also, if you have recurring charges these may not be submitted for authorisation everytime they are due to run. The vendor may simply submit the charge for payment manually if that is allowed under the agreement you undertook. This is how you can continue to be billed under an old card number even after you cancel your account - your agreement is with the vendor and Amex legally can't break it on your behalf.

It's a complicated set of rules but certainly not restricted to Amex, I received recurring billing on my Visa 6 months after I cancelled it.

 

[wxxnxs]

AMEX in Australia is a joke! I got a free one from prof. institution but never used once because I don't think it is secure enough to use in every days transactions.

 

[SimonM]

Mastercard must be similar. When I canceled mine, the lady on the phone advised me that I'd be responsible for any charges to the card, even after cancellation.

I pointed out that they'd be the ones responsible for authorizing the charges to a canceled card, but it wasn't worth arguing with someone who couldn't change the rules.

 

[simongr]

AMEX in Australia is a joke! I got a free one from prof. institution but never used once because I don't think it is secure enough to use in every days transactions.

I push around 100 transactions a month through my Amex and have had no instances of fraud in 3 years of use.

Do you have any evidence to support your allegations?

 

[ChrisFlyer]

I recently had my Amex card number used without my permission to buy airline tickets and mail order items online, so I called Amex and the card number was blocked immediately, and I had a new card (with completely new number, expiry and cvv code) arrive 3 days later.

I also have my own merchant facility for online transactions, and have access to Amex-accepting EFTPOS terminals at work. I was testing, and the card declined for online use, and also displayed the "refer to bank" error message on the terminal... Perhaps whoever was "supposed" to disable your number didn't do it properly?