Just a heads up to a few experiences that have happened to our family recently regarding credit and debit cards that were re-issued to us because of suspected fraudulent activity due to accts being hacked at the retail levels. Essentially the new account numbers are being cross referenced to the old acct numbers by the Banks/Mastercard so as, I am assuming here, the retailers do not have to call the cardholders to "re-authorize" a recurring payment. While I have been with USAA for 37 years now, and for the most part have valued their level of service to me, this is an issue where USAA may be "following the leader" here, but should in fact be taking the lead to stop this practice for its members protection.
My daughter is a USAA member, and had a situation earlier this year where a tannning salon that she had cancelled her membership to some YEARS ago used her old debit card # to charge her for some "recent" years of membership and late fees, with no notification of the billing from the salon, and eventhough she had been issued a new debit card since the time of the cancellation. She reported it as fraud to USAA who eventually got the money (about $2000) put back into her checking acct., only to have it happen a second time with the same business, along with the same hassles of getting the money back, not to mention the financial hardship of haveing that amount of money all of a sudden disappear from your checking acct.
Just a few days ago I had it happen to me where my CC was charged for an internet security software license renewal against the new CC acct number I recieved recently vs the old acct number that the vendor had on file. To be upfront, yes, my acct with this vendor had me listed as an automatic renewal, and which the vendor sets up as an automatic default when you buy the software, which was purchased two years ago now, and something that perhaps many people will not remember at the time of purchase. I called USAA about how they got the new number and initally told me that Mastercard was responsible for this, so I called MC and they told me that the bank issuing the card is in fact the one processing the payment. I called USAA and expressed to them that I consider this practice to be fraudulent on their part. These new cards are issued for the very reason that fraudulent activity was suspected with the old card account numbers. Cross referencing these acct numbers to the new cards then effectively means that anyone who has access to your old card numbers from years ago apparently can issue a charge to them and the bank will process it without you, the actual cardholder, ever being in the approval loop, with the only recourse being left to you is to dispute the charge.
I'm sorry, but these are my CC and checking accounts USAA, and unless the charges reflects the correct acct numbers, then it is your responsibility to refuse the transaction unless the acct holder authorizes it. Anything less is to be considered fraud on your part.
TO OTHER USAA MEMBERS, PLEASE TAKE NOTE OF THIS PRACTICE. THERE IS A REAL POSSIBILITY THAT A MEMBER MAY BE CHARGED BY A RETAILER FOR A SERVICE OR PRODUCT THAT THEY HAVE NOT DONE BUSINESS WITH, BUT WHO HAS ACCESS TO YOUR OLD CREDIT CARD/DEBIT CARD ACCT NUMBER!
I have passed your comment over to our banking team for review. I will have a team member reach out to you in order to address your concerns. Thank you for commenting in Community.
Because everyone's cards a different, this may not be the base for other member's specific cards. But, it’s the Master Card Automatic billing updater that allows transactions to post even if the card was canceled. The updater assists account holders, who have recurring charges, avoid declined transactions during our account transfer processes such as mass re-issue, upgraded accounts, and lost/stolen accounts. If you are concerned about this please give us a call at 1-800-531-8722. Thank you.
Thanks Brianna, for posting more information on the community page!
A banking representative contacted me yesterday and explained the reasons and processes very well. I now understand USAA and Master Card are working together for the members' benefit.