I recently received a letter from an organisation with whom I had set up a recurring payment authority with a credit card. Amongst the usual blurb was a request to update my card details, which had expired in 2010. This made me wonder how an organisation could continue to draw funds with a card nearly three years past its expiry; I certainly could not do this. So I contacted my bank, and was informed that even though the card was expired, the bank was still obliged to process payments. Further, I was advised that I would have to contact the organisation if I wished to cancel the recurring payment. This seems odd to me that I should have to consult a third party about transactions which are conducted by a bank on my authority. I am currently trying to clarify the rules in Australia regarding recurring payments, but I have found that in the UK such agreements must be cancelled opon the request of the account holder.

http://www.moneysupermarket.com/c/news/know-your-rights-about-continuous-payments/0013954/

http://www.theguardian.com/money/2013/jun/28/banks-cancel-recurring-payments

It would be nice if things were the same in Oz.

Regrettably a failing of the the system in Australia is if an organization, shop etc has you credit card number they can withdraw money from your account.

Hi Phil,

Yes, it does seem surprising that an entity can make withdrawals from an account using an expired credit card. But even more surprising to me is the fact that the authority to draw funds does not reside with the account holder. Of course, the account holder does have the authority to cancel a card or to close an account. So I guess that ultimately the account holder does have control, although it would be quite an inconvenient authority to exercise.

Fester,

A fool of a manager of a timber yard put through numerous transactions for the same large amount on my credit card. He was taking executive action while the sole office worker trained to do it had taken an approved early mark for a long weekend.

I was to find that there was nothing I could do about it but hope that the business would reverse the entries when it suited it. The commitment against the card limiting credit available, lasts until it is authorised by the said trader late in the month.

Fortunately I had other cards and sources of money and I woke to the problem immediately (I stormed behind the counter to see what the hell was going on with my card), but for anyone who didn't, they might be living off charity and possibly getting a hidden poor credit rating as well.

It is simply not good enough. The available protections work to suit the card provider and the trader. It is a reminder that the federal government volunteered the Australian public as the guinea pigs for the mass introduction of the credit system.

That's very strange, indeed, Fester.

I can only assume, not knowing the details, that you renewed the card at some point, and that your new card has the same number as the old one. If the card had actually expired, i.e. was no longer valid, then the Bank would have no account against which to process the payment - this happens of course when you lose a card, cancel it, and have it replaced with a new one with a different number.

If there is continuity (in the card number, that is) then the Bank is doing the right thing, because as far as they are concerned, that account number is still valid.

My Bank clearly states in its Ts and Cs that "A cardholder may not request NAB to alter or stop payment on the transaction. A cardholder may only cancel regular payments authorised to be made to your account by direction to the merchant"

I strongly suspect yours does too.

Hi Pericles,

Just to clarify, the recurring payment authority I signed included card details and an expiry date. My assumption was that the agreement would end with the expiry of the card. But the fact is that card expiry is no barrier to funds being drawn. Yes, I could cancel the card to stop the payments, but it would be easier if I could make a specific request to the bank.