Can companies get payment from cancelled card ?

1jacks64

This is something that I have wondered.

If you have a continuous authority set up on a credit card with a company that provides a service such as AA breakdown cover for example or internet access and you decide that you don't want the service anymore - is it O.K to just tell the credit card company that you have lost your credit card so that they issue you with a new card that has a new card number therefore preventing any future transactions going through.

Of course it is wise to tell the company in advance that you don't want the service anymore before or very soon after doing this. However, it must be quite an effective method of preventing some unscupulous companies from taking payment on your credit card even when you have cancelled the service that you requested from them.

I'm asking this as Martin has spoken of the dangers of these 'continuous authority agreements' and how it is safer to use Direct Debit.

So does anyone have any views on this and whether this actually works ?

derrick

Not quite sure about all the in`s and out`s but cancelling a card and or telling the c.c company not to pay will not work,as you need to get the company you gave the continuous authority to, to cancell the agreement as your contract is with them and not the c.c company,I know this is correct because it happened to me.
My advice,NEVER use continuous authority,either with credit or debit cards,as they both work the same way