As a merchant, I offer online subscription services to my customers. Often, my customer's credit card will expire, despite having an active subscription service to my product.
Is it legal for me to guess my customers new credit card expiry date to continue charging them for their subscription, if they haven't cancelled and their old card has simply expired?
Dale has the right answer, but I'd like to elaborate on why it isn't lawful (as compared to why it would be unlawful).
I know it doesn't work that way on line, but it's simpler to think of a credit card as a physical piece of plastic. The bank will have issued this to their customer. It will have a number and an expiry date. You have no way of knowing whether a replacement card has been issued. Even if one has, the customer has authorised you to charge a specific card - you do not have the customer's authorisation to charge a different card with a different expiry date.
By guessing the expiry date, you would be making a representation to the bank that the customer has authorised you to charge that card (if it exists), when they have not.
That would be a breach of your agreement with both your customer and your bank.
It’s also fraud.
If they don’t respond to reminders, you just have to suspend/cancel their subscription (subject to your terms with them).
