Why do Credit Cards have Expiry dates?

Credit cards expire for a number of different reasons.

Firstly, the expiry date provides an added security measure to protect against credit card fraud. Most online credit card transactions ask for your expiry date as an additional confirmation that you have the credit card in hand.

Secondly, as credit cards are made from plastic, they will enevitably wear over time. They may crack or chip, thus affecting their proper use. The card details can also become worn, making it hard to read the information.

Thirdly, and probably, most importantly, the magnetic strip can wear. The lifespan of the magnetic strip is on average 3-4 years. Deterioration of the strip can affect the proper functioning of the card.

These are the 3 most important reasons as to why your credit card carries an expiry date. You will find that the validation period of credit cards varies from one provider to another. The expiry period is usually anything from 2-4 years. Heavy use of a credit card can minimise the lifespan of a credit card, requiring a replacement before the expiry period.