I had a new card issued, and I intentionally did not go online to update with them or any other website expecting to receive email notifications from any and all sites that needed me to update my payment method. Netflix did not. It took me calling them to find out, but they have an agreement with card issuers where they can find out that you have been issued a new card and automatically be granted authorization to start billing against that new card without you providing them the information. "It's a courtesy service to avoid interruptions in your service" is how it was explained to me. Sounds like card fraud to me.
Netflix doesn't have a special agreement with card issuers. Like most businesses today, Netflix uses issuer tokens instead of saving your credit card information [0]. This is a good thing—aside from reducing accidental interruptions (not a big deal for you and Netflix, but a huge deal for you and your power company), it's much more secure.
Netflix should make it easy to cancel your subscription, but using an issuer token isn't card fraud, it's good business and an overall benefit to 99% of customers.
Yes, I updated my comment a few seconds ago to include my source for Netflix's specific implementation.
And regardless of the mechanism for the credit card updates, it's not fraud. Customers, Visa, banks, and merchants all benefit from removing the arbitrary hassle of keeping track of expiration dates and stolen card numbers.
I'm suggesting that the reps on the phone and your bank were talking about issuer tokens. Source [0].
Besides, regardless of the means by which card updates are handled, it isn't fraud. You authorized Netflix to charge an account, not a particular physical card. If you want to revoke that authorization, you need to revoke the authorization, not get mad at them when they work with Visa to streamline the process of charging the authorized account.
We absolutely do need to improve transparency and require companies like this to make canceling easy, but hyperbole but like yours isn't helping us get there—it makes those of us fighting bad behavior seem irrational and uninformed.
> We absolutely do need to improve transparency and require companies like this to make canceling easy, but hyperbole but like yours isn't helping us get there
What ever this service of providing a token that you seem to feel superior for knowing the details is just a way for these SaaS type systems to continue to drain money from people. Netflix or any streaming platform is not a life or death service that users need. if they fail (intentionally or not) to keep the service updated with payment information, suspending the service is not going to cause anything but a bit of inconvenience. if you're so spoiled that you get upset at the suspension, then that's on you (royal you not lolinder). instead, we've built this system that makes it easier for the SaaS providers to continue using their dark patterns to siphon money which ensures the card companies their monthly fees as well. so while you may disagree with me calling it fraud, it does feel a lot like collusion between these parties rather than being a service for the consumer.
So since we cannot win against the dark patterns, they've now removed the sure fire way people had to protect themselves. But hey, it sure makes it convenient for them
Um, no, fraud is a crime that carries with it fines and prison sentences. We try to have such things be very well defined and as objective as humanly possible.
