Interesting banking industry practice uncovered.

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Forums › Finance and wealth management › Interesting banking industry practice uncovered.

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#3443093 12-Dec-2025 12:00

geek3001:

@michaelmurfy, if I understand earlier posts correctly, the token is linked to your credit card account, not to any specific card linked to that account, meaning when a card is replaced (either routine or after fraud) the existing token held by a merchant remains valid.

If that is the case, then if one was to use services like Revolut, would the (single??) token for card(s) issued by them be linked to your Revolut account, meaning subsequent cards (virtual or otherwise) would be linked to the same token, meaning that a merchant could still charge the token that is linked to your Revolut account regardless of whether you had cancelled a virtual card and created another one?

I have not had Adobe charge again after deleting a virtual card. They do keep emailing about it and the plan stopped working after the 1 month that it was needed for.

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#3443094 12-Dec-2025 12:30

geek3001: If that is the case, then if one was to use services like Revolut, would the (single??) token for card(s) issued by them be linked to your Revolut account, meaning subsequent cards (virtual or otherwise) would be linked to the same token, meaning that a merchant could still charge the token that is linked to your Revolut account regardless of whether you had cancelled a virtual card and created another one?

No, doesn't work this way with them.

You remove a virtual card and that is it. Anything, including tokens are removed.

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yitz

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#3443098 12-Dec-2025 13:06

What about Wise? and Dosh?

Lots of ads currently running for Revolut and Wise maybe they can let people know about this shocking banking industry practice 👍

mudguard

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#3443105 12-Dec-2025 13:22

yitz:

What about Wise? and Dosh?

Lots of ads currently running for Revolut and Wise maybe they can let people know about this shocking banking industry practice 👍

But do people actually think it's shocking? Surely the fundamental issue is that for whatever reason people think cancelling a card instead of the service resolves them of responsibility? Not withstanding the difficulty the OP may have had in cancelling directly, but the convenience is more than useful to many people.

The first example I can think of is my credit card is attached to a motorway toll. So when my card expires or gets cancelled, I do t have to go through transactions to work out which ones I need to renew my new card with. Especially for services that aren't used that often.

It's like account name matching, it's only there because of occasional fraud and will probe to be an inconvenience to us all at some point.

I can see some customer purchasing a home and settling on a Friday and then getting a mismatch with a name at 3pm on a Friday afternoon...

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#3443106 12-Dec-2025 13:29

mudguard:

But do people actually think it's shocking? Surely the fundamental issue is that for whatever reason people think cancelling a card instead of the service resolves them of responsibility? Not withstanding the difficulty the OP may have had in cancelling directly, but the convenience is more than useful to many people.

I think some people may have been burnt with services which either don't honour a cancellation request, or make cancelling deliberately difficult, and expect that if they end up in a situation where the service can't be cancelled they can cancel the card and be done with it. A lot more difficult with a lot of services being headquartered offshore these days.

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#3443135 12-Dec-2025 16:51

cddt:

I think some people may have been burnt with services which either don't honour a cancellation request, or make cancelling deliberately difficult, and expect that if they end up in a situation where the service can't be cancelled they can cancel the card and be done with it. A lot more difficult with a lot of services being headquartered offshore these days.

I believe I can speak to this point.

I am aware of a husband and wife with limited but very well managed financial affairs, who cancelled their anti-virus subscription with a large reputable company as they wanted to use an equivalent product from another large reputable company available at a lower cost that they could better afford.

They had all the cancellation info in writing via email, including written confirmation of cancellation from the large reputable company.

Along comes their (previous) annual automatic billing anniversary, lo and behold their card was charged with a three-figure fee.

This unexpected and un-budgetted charge was a significant problem for them.

They contacted the large reputable company and were told their account was no longer active, their card could not have been charged, sorry we can't help you.

Their bank / card issuer managed to process a charge-back, only on the basis that the couple had the proof of cancellation in writing. Who knows what would have happened if their only interaction with the vendor had been on the phone with little if any proof of cancellation.

The same thing happened for two more years, on the annual automatic payment anniversary.

The couple were suffering from conniptions by this point. They ended up cancelling all services with that bank and took their bank accounts etc elsewhere, as cancelling their card and getting a new one did not stop the automatic charge on the third occasion.

This thread has provided valuable insight as to what was probably happening and why their card was repeatedly pinged each year for three years running.

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#3443138 12-Dec-2025 17:32

I'd argue the couple would have a case against this company for bad consumer practices. Of course there's the time and cost involved in pursuing this. And no guarantee it would stop.

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#3443148 12-Dec-2025 18:17

freitasm:

I'd argue the couple would have a case against this company for bad consumer practices. Of course there's the time and cost involved in pursuing this. And no guarantee it would stop.

That's pretty much how the wife felt by the third instance of annual billing after the service had already been cancelled. She was very stressed about it.

I'd say there were at least two computer systems in play, one system that Customer Service could see where the cancellation was visible, and another system where the billing instruction was intact and was being triggered annually with some sort of batch process, with neither system properly communicating with the other.

Ragnor

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#3443441 12-Dec-2025 23:58

mudguard:

Part two is no different to a direct debit. With the credit card you effectively sign a direct debit and give authority to the merchant. So they are the only ones who can cancel it. So you're not likely to get a feature in the banking app which allows you to cancel it.

Ultimately this all comes down to cancelling a, service or subscription properly, rather than cancelling or changing a credit card number. There are plenty of bank processes such aren't spelt out in detail for the customer.

Direct debits also lack transparency and control for the user and should be fixed

mudguard

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#3443445 13-Dec-2025 06:29

Ragnor:

mudguard:

Part two is no different to a direct debit. With the credit card you effectively sign a direct debit and give authority to the merchant. So they are the only ones who can cancel it. So you're not likely to get a feature in the banking app which allows you to cancel it.

Ultimately this all comes down to cancelling a, service or subscription properly, rather than cancelling or changing a credit card number. There are plenty of bank processes such aren't spelt out in detail for the customer.

Direct debits also lack transparency and control for the user and should be fixed

But for the most part you don't have to agree to a direct debit, either pay manually or via AP.

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#3444390 16-Dec-2025 00:09

mudguard:

But for the most part you don't have to agree to a direct debit, either pay manually or via AP.

Sure but doesn't matter.

If you choose to allow a direct debit for convenience it shouldn't be some magical hidden payment type not visible in your account that you can't cancel.

"That's how they work now" is a relic of the past.

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mudguard

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#3444443 16-Dec-2025 07:11

Ragnor:

mudguard:

But for the most part you don't have to agree to a direct debit, either pay manually or via AP.

Sure but doesn't matter.

If you choose to allow a direct debit for convenience it shouldn't be some magical hidden payment type not visible in your account that you can't cancel.

"That's how they work now" is a relic of the past.

But how is that any different to plenty of other tech? I type in an address into the browser and it takes me there. I don't really understand how it does it.

For years it was clear that a direct debit handed over your authority to a third party (though I've since read the ANZ terms and conditions mentioned above) which is why they were generally used for "trusted" third parties like a telco or power company.

The bottom line for all this is that OP has tried to get out of a financial contract by cancelling the payment method rather than the contract. Again, I'm not trying to diminish the fact that companies do make it hard and potentially illegally take the payment. I've just been pinged another year for a subscription for a product I do use but decided last year that I didn't need again. But that's on me. It's also sneaky there was no renewal email.

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#3445627 19-Dec-2025 15:56

Final update: The ANZ has determined that the process of issuing tokens will remain unchanged, and that no distinction is made as to why a credit card number was cancelled and replaced with a new one. They make no distinction between cards cancelled because of expiry and cards cancelled for any other reason. Therefore after a card is cancelled, subsequent transactions may be processed against the new card number despite the merchant having no record of the new number.

This has been a significant learning experience for me. I am not surprised at the outcome. The ANZ decision is beyond the scope of the Banking Ombudsman to deal with.

When a new card number is issued, the ANZ has the right to advise anyone they choose to of the new card replacing the old one, through the VAU process. I could choose to take this up with the privacy commissioner but currently I am not inclined to do so given that I would be taking on both the Bank and Visa.

The result of this is that credit card users should check every transaction processed against their account as often as possible and dont hesitate to dispute a transaction that looks odd - particularly when the Merchant's name does not appear in the description. You will be held liable, even if the Merchant has no record of the credit card number used to bill you.

In respect of annual subscriptions there is clearly no requirement to advise you in advance of an upcoming renewal. If you are able to do so when subscribing opt out of auto-renewal. If you cannot opt out of auto-renewal, consider other ways (such as early cancellation or removal of payment methods from the merchant) of avoiding an unannounced renewal in a years time.

This information is supplied to close the issue. Thanks to all who contributed.

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#3474280 27-Mar-2026 10:35

An interesting update, as Visa is set to launch a new subscription management initiative, starting with some banks in specific regions. Also, the issuer bank needs to add this feature to their apps, so it may not be available to everyone at the same time. There's no date for release here, but I'm sure banks will be made aware of this.

Visa Launches Enhanced Subscription Manager, Giving Consumers Greater Control Over Recurring Payments

Visa (NYSE: V), a global leader in digital payments, today unveiled an Enhanced Subscription Manager solution, a new value‑added service within its Digital Issuer Solutions business. As the number of subscriptions worldwide is projected to reach 12 billion by 2030, consumers are seeking simple, transparent ways to track and manage recurring charges. In support of this, Visa is collaborating with Pinwheel, a leading provider of in‑app bill management capabilities.

Enhanced Subscription Manager helps issuers respond to consumer demand by offering a consolidated, easy-to-integrate solution that elevates the user experience. Issuers can give cardholders greater subscription visibility, easy payment switching methods and cancellation capabilities, all without leaving their banking app. This helps reduce unwanted charges by giving consumers greater confidence and control over recurring subscription payments. Issuers can help strengthen engagement, improve retention, and reduce disputes and chargebacks tied to recurring payments.

“Consumers today want clarity, control, and convenience when it comes to managing the subscriptions that touch so many parts of their lives,” said Kathleen Pierce‑Gilmore, global head of Issuing Solutions at Visa. “By enhancing subscription management capabilities with Digital Issuer Solutions, and expanding through strategic collaborations with companies like Pinwheel, we’re helping issuers deliver digital experiences that keep them top‑of‑wallet.”

Visa’s Digital Issuer Solutions is a platform for delivering modern consumer‑facing experiences in an issuer’s app. Enhanced Subscription Manager is one of several value‑added services offered within the platform, focused specifically on subscription visibility and management. Additional platform capabilities include scheme‑agnostic push provisioning, digital card display, and transaction controls, supported by a foundation designed to evolve alongside issuer needs.

By integrating with Visa’s Digital Enablement Software Development Kit (SDK), the new collaboration with Pinwheel enables issuers to embed card switching and subscription cancellation for 100+ major merchants within their digital channels. According to a January 2025 survey of 500 employed and banked American consumers by Pinwheel, 75% of consumers expect in‑app bill management, and over 50% of Millennials and Gen Z consumers would switch banks to get it.

"As the subscription economy has exploded, consumers have lost visibility and control over their recurring spending," said Brian Karimi-Pashaki, Chief Revenue Officer at Pinwheel. “That lack of transparency is confusing for consumers. Banks and fintechs that empower consumers to view, manage, switch, and cancel subscriptions are winning primary relationships, substantial interchange revenue, and long-term brand loyalty."

Visa’s Enhanced Subscription Manager will be available to North American issuers in summer of 2026, followed by expansion to Latin America and the Caribbean. Visa designs and develops products to enhance the subscription billing experience for consumers, financial institutions, and merchants, with additional enhancements planned throughout 2026.

Frequently Asked Questions (FAQ)

What is Visa’s Enhanced Subscription Manager?

Enhanced Subscription Manager is a value‑added service that is part of the suite of Digital Issuer Solutions. It enables issuers to provide cardholders with a centralized experience to view, manage, switch, and cancel recurring subscription payments directly within their mobile banking apps. Enhanced Subscription Manager brings together subscription visibility, alerts, insights, and card‑on‑file management through a single integration.

Who is the Enhanced Subscription Manager designed for?

The Enhanced Subscription Manager is designed for issuers that want to give their cardholders greater transparency and control over recurring payments while strengthening digital engagement and loyalty.

How does the collaboration with Pinwheel enhance the experience?

Through Visa’s collaboration with Pinwheel, issuers can offer expanded subscription switching and cancellation capabilities across more than 150 merchants. This includes cancellation for select merchants and guided workflows for many others, helping consumers take action on subscriptions that are often difficult to manage.

Can Enhanced Subscription Manager support subscription cancellation and card switching across payment networks?

Yes. Consumers can cancel subscriptions and switch eligible subscriptions paid with any card to a Visa card. The cancellation and switching capabilities, enabled through Visa’s collaboration with Pinwheel, work across payment networks.

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gzt

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#3474289 27-Mar-2026 10:48

That would make financial subscription management so much easier. I have a couple where I've cancelled in the app and payments continue..

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